Pakistan has begun construction of its first large commercial ship in decades, marking a significant step in the government’s efforts to revive the country’s shipbuilding sector and leverage the potential of its blue economy.
Assembly of the containership has commenced at Pakistan’s only shipyard, representing a major milestone for an industry that has remained largely inactive since the 1980s.
However, the project is expected to contribute to economic development and strengthen domestic maritime capabilities.The Karachi Shipyard & Engineering Works is building the vessel, which will have a capacity of 1,100 TEU, for the state-run Pakistan National Shipping Corporation. The project was first announced in 2024, with a contract signing in February 2024, but it had stalled due to financial challenges in Pakistan. The government stepped in to help revive the project, and steel cutting began in January 2026.
Steel cutting for the vessel has now been completed, and assembly has begun. Reports indicate that the last commercial ship was built more than 40 years ago, with the yard mostly working on frigates, corvettes, fleet tankers, and logistics ships for the Pakistan Navy. However, it highlights that it has the capacity to build vessels up to 26,000 dwt, including bulkers, tankers, dredgers, ferries, fishing boats, and tugs.
The government launched a task force in 2024 to examine the opportunities to expand Pakistan’s maritime economy. Reports indicate that it identified 99 bottlenecks and so far has been able to implement solutions for 84 of the challenges.
The government recognized that there were large financial barriers, and it agreed to abolish a 22 percent sales tax on vessel purchases and shipbuilding materials. It highlights that neighboring countries, including India, subsidize shipbuilding by up to 30 percent. By reforming its financial policies, it hopes to make Pakistan more attractive to shipowners. It notes that the country’s largest owners have in the past registered ships in Panama and Liberia.
In addition to reviving commercial shipbuilding, the government reports it is working to modernize the country’s port operations. It has reduced the customs clearance times, deployed advanced container scanners, and introduced 24-hour port operations.Another portion of the plan seeks to revive the sagging shipbreaking sector. The business, which was among the largest in the world, collapsed due to financial pressures and new environmental mandates. Pakistan has become a signatory to the Hong Kong Convention and reports that five of the breaker yards have achieved full compliance.
Domestic shipbuilding, it reports, will save foreign exchange, and it believes it has the potential to become an exporter of new ships. It also notes that revitalizing the broader sector will also create new jobs.
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