ISLAMABAD: Pakistan on Tuesday unveiled a plan to revive its dormant steel industry through a new maritime-industrial partnership that officials say could cut steel imports and save the country up to $13 billion over the next decade.
The proposal, presented by Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry during a meeting with Special Assistant to the Prime Minister on Industries Haroon Akhtar Khan, seeks to integrate ship recycling, steel production and green industrial practices under one initiative.
Built with Soviet assistance in the 1970s, Pakistan Steel Mills (PSM) was once the country’s industrial flagship but has remained closed since 2015 after years of financial losses.
Successive governments have sought to restart or privatize the facility, including holding recent talks with Russian officials who originally helped set up the plant.
“Minister Chaudhry said the initiative could reshape Pakistan’s industrial and maritime sectors by integrating ship recycling, steel manufacturing and sustainable industrial practices into one ecosystem,” according to the statement released by the ministry after the meeting.
“Pakistan currently imports around $6 billion worth of steel annually, with demand expected to grow by nearly 6 percent each year through 2035, according to a World Bank report,” it added. “The minister noted that the proposed project could reduce steel imports by up to 20 percent, potentially saving the country over $13 billion in the next decade.”
At the heart of the proposal is the revival of the long-idle Iron Ore and Coal Berth (IOCB) at Port Qasim, inactive since 2015. The facility would be converted into a modern ship recycling and repair complex featuring a large floating dock capable of servicing Aframax-class vessels.
Chaudhry said steel recovered from dismantled ships would either be supplied to Pakistan Steel Mills or reprocessed near Port Qasim into high-grade industrial steel, reducing dependence on imported raw materials and conserving foreign exchange.
He added that the same dock could serve the Pakistan National Shipping Corporation (PNSC), which currently relies on foreign shipyards for maintenance, a move expected to cut costs and strengthen maritime infrastructure.
The prime minister’s special assistant welcomed the proposal, emphasizing the need for inter-ministerial coordination.
“We must work together for Pakistan’s economic growth and the welfare of our people,” he said.
Chaudhry said the initiative reflected a strategic alignment of maritime trade, industrial growth and environmental sustainability.
“This is about building a self-sustaining maritime-industrial ecosystem that strengthens the national economy,” he added.
