Pakistan’s Ministry of Maritime Affairs has announced a USD 13 bln savings plan aimed at reviving the long-dormant Pakistan Steel Mills (PSM) through the creation of the country’s first “Sea-to-Steel Green Maritime Industrial Corridor” at Port Qasim, Karachi.
Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry said the project, developed with the Ministry of Industries and Production, would help reduce the country’s USD 6 bln annual steel import bill by up to 20pct over the next decade.
The plan centers on reviving the idle Iron Ore and Coal Berth (IOCB) at Port Qasim, unused since 2015, and converting it into a modern ship recycling and repair complex with a floating dock capable of handling Aframax-class vessels. Steel recovered from dismantled ships would be recycled into high-grade steel for PSM and other local industries, cutting import dependence and boosting domestic capacity.
The project is also expected to support the Pakistan National Shipping Corporation (PNSC) by enabling local ship repair, reducing maintenance costs, and strengthening maritime infrastructure.
Authorities will finalize financial and technical frameworks in coordination with national agencies and international partners before a formal presentation to stakeholders.
Separately, the government continues talks with Russia on two revival options for PSM, either modernizing the existing blast furnace model for USD 1.91 bln or developing a new electric arc furnace (EAF) plant for USD 1.05 bln. PSM has been non-operational since 2015 due to financial mismanagement and governance failures.
