Pakistan starts building its first containership in four decades

Pakistan has begun assembling its first large commercial ship in more than four decades, a containership being built as part of a wider government drive to develop the country's blue economy. Steel cutting was completed after work began earlier in the year, and assembly is now under way at the country's sole shipyard.

The vessel, with a capacity of 1,100 TEU, is being constructed by Karachi Shipyard & Engineering Works for the state-owned Pakistan National Shipping Corporation. The project was first agreed in early 2024 but stalled amid financial difficulties before the government stepped in to revive it. The yard, which has spent recent decades focused on frigates, corvettes, fleet tankers and logistics ships for the navy, says it can build vessels of up to 26,000 dwt, including bulk carriers, tankers, dredgers, ferries and tugs.

To make domestic construction more attractive, the government abolished a sales tax on vessel purchases and shipbuilding materials, noting that neighbouring countries subsidise the sector heavily. It argues that building at home will save foreign exchange, create jobs and, in time, allow Pakistan to export new ships, reversing a pattern in which local owners registered tonnage in Panama and Liberia.

The programme sits alongside efforts to modernise port operations, with faster customs clearance, new container scanners and round-the-clock working, and to revive a shipbreaking sector that once ranked among the world's largest before environmental rules and financial pressure pushed it into decline.