KARACHI: China’s Shandong Xinxu Group is planning to invest as much as $1.34 billion to build an integrated maritime industrial complex (IMIC) at Pakistan’s second-largest port in southern commercial capital Karachi, a senior official familiar with the project told Arab News on Tuesday.
IMIC is the government’s flagship initiative to modernize industrial operations through upgrading port infrastructure, establishing shipbuilding and recycling facilities as well as an integrated steel mill at Port Qasim, which houses the Qasim International Container Terminal of DP World.
“They have shown interest in investing an estimated $1.34 billion overall in the IMIC project,” said a maritime affairs ministry official on condition of anonymity since the project’s modalities are still being discussed.
The planned investment, if materialized soon would augur well for Pakistan’s economy which has stabilized with the help of a $7 billion International Monetary Fund’s loan but desperately awaits dollar inflows especially on account of foreign direct investment (FDI) and exports, which according to official data, dropped 43 percent to $808 million in July-Dec.FY26 and 7 percent to $18.2 billion in July-Jan. FY26 period, respectively.
Shandong Xinxu Group Corporation Ltd. is a global manufacturer specializing in green battery manufacturing, nuclear power equipment, environmental protection products and other industrial solutions.
“The Chinese plan to invest about $800 million in shipbuilding and $540 million in the rest of the IMIC or sea-to-steel project,” said the official, referring to the government’s initiative to integrate ship recycling with domestic steel production, adding that the amount of investment was contingent upon the establishment of a 300,000-ton furnace oil plant at Port Qasim.
In Nov. 2025, Prime Minister Shehbaz Sharif’s government announced new initiatives including Pakistan’s first green ship repair and recycling yard to be established under the sea-to-steel IMIC project. IMIC will also support the revival of Pakistan Steel Mills (PSM).
Muhammad Arshad, public relations officer at the maritime affairs ministry, said the Chinese were keen to invest in Pakistan’s port infrastructure, though he said the exact amount was not clear at the moment.
