China to invest $800 Million in Pakistan’s Sea-to-Steel Maritime Project at Port Qasim
A Chinese firm is set to invest $800 million in Pakistan to implement the Integrated Maritime Industrial Complex (IMIC) project, which includes a comprehensive sea-to-steel initiative at Port Qasim, along with shipbreaking and maintenance facilities. The investment aims to modernize Pakistan’s maritime and industrial infrastructure, reviving Pakistan Steel Mills (PSM) and the Iron Ore and Coal Berth, which has been abandoned for over 12 years.
The Sea-to-Steel Project will create a complete industrial chain, starting from ship recycling to producing steel for PSM through a mini-furnace factory. This initiative leverages scrap steel from shipbreaking to reduce reliance on imported raw materials and promote domestic steel production. The project also includes ship maintenance and repair facilities, positioning Port Qasim as a regional hub for heavy industry and maritime logistics.
PSM has remained non-operational since 2015 following the suspension of gas supply by Sui Southern Gas Company. Discussions with Russia were previously held to revive the mill, but the current government is now collaborating with the Chinese firm to implement this $800 million investment over five years.
Federal Minister for Maritime Affairs Junaid Anwar Chaudhry chaired a high-level review meeting to accelerate the IMIC and Sea-to-Steel initiative. Representatives from China’s Shandong Xinxu Group and senior officials from the Ministry of Maritime Affairs attended, while Port Qasim Authority Chairman Rear Admiral (Retd) Syed Moazzam Ilyas joined via video link.
The IMIC features three core components, including the revival and upgrading of the Iron Ore and Coal Berth. The facility will handle ship recycling and repair, with resulting scrap feeding into PSM operations. Branded as the Sea-to-Steel Green Maritime Industrial Corridor, the project connects maritime recycling with domestic steel production, fostering industrial value creation, job opportunities, and sustainable development aligned with national priorities.
The Chinese firm is expected to submit a detailed feasibility study covering financial impact, structural and hydrographic analyses, and risk assessments. Minister Junaid Anwar stated that once reviewed, the IMIC could become one of Pakistan’s largest recent maritime and industrial investments, boosting exports, creating jobs, and reducing dependence on imported steel. The project is also seen as a key driver of Pakistan’s blue economy by integrating maritime assets with industrial operations.
