Karachi Shipyard builds 1100TEU container ship, first since the 1980s

en.Wedoany.com Reported - Pakistan has restored its large commercial shipbuilding capacity as part of its "Blue Economy" development plan, with Karachi Shipyard & Engineering Works beginning assembly of the country's first large commercial vessel since the 1980s—a 1100 TEU container ship. Ordered by the state-owned Pakistan National Shipping Corporation, the project signed a contract in February 2024, stalled due to financial challenges, and resumed steel cutting in January 2026 after government intervention. Steel cutting is now fully complete, and the vessel has entered the hull assembly stage.

The shipyard has not built commercial vessels for over 40 years, primarily undertaking military orders such as frigates, corvettes, fleet tankers, and logistics ships for the Pakistan Navy. However, the yard states it has the capability to build vessels up to 26,000 deadweight tons (dwt), covering categories including bulk carriers, tankers, dredgers, ferries, fishing vessels, and tugs.

To remove obstacles to industrial development, the Pakistani government established a task force in 2024 to conduct a special study on the marine economy, identifying 99 bottleneck issues, of which 84 have already been addressed with solutions. In fiscal policy, the government abolished the 22% sales tax on ship purchases and shipbuilding materials, noting that neighboring countries including India provide subsidies of up to 30% for the shipbuilding industry, aiming to make Pakistan more attractive through tax reforms. Reports indicate that the country's largest shipowner previously registered vessels in Panama and Liberia.

In addition to commercial shipbuilding, the government is also promoting the modernization of port operations, including reducing customs clearance times, deploying advanced container scanners, and implementing 24-hour port operations. The shipbreaking industry is also a key part of the plan; this sector was once among the largest globally but declined due to financial pressures and environmental requirements. Pakistan has signed the Hong Kong Convention, and five shipbreaking yards are fully compliant with its requirements.

A government report believes that developing the domestic shipbuilding industry will save foreign exchange expenditures and holds the potential to become an exporter of new vessels, while the revitalization of related industries will also create new job opportunities.