A delegation from the Chinese company Shandong Xinxu Group met with Prime Minister Shehbaz Sharif on Wednesday, expressing strong interest in establishing a maritime industrial complex and developing a green shipbreaking yard in Pakistan, according to a statement from the Prime Minister's Office.
Shandong Xinxu Group Co., Ltd. is a high-tech energy enterprise involved in various sectors across the renewable energy industry chain. Its operations include manufacturing battery equipment, nuclear power components, urban wastewater treatment, and smart energy storage systems. According to the company’s website, its products are exported to over 40 countries and regions, including Pakistan, India, Tunisia, and Belarus.
In recent years, Pakistan’s shipbreaking sector has experienced a decline, impacted by broader economic challenges and growing global pressure to end environmentally harmful beach scrapping practices. These methods have raised concerns due to the release of toxic pollutants into marine ecosystems.
During the meeting held in Islamabad, the delegation—led by Shandong Xinxu Chairman Hou Jianxin—was welcomed by Prime Minister Sharif, who encouraged Chinese firms to invest in Pakistan. He assured the delegation that the government is committed to facilitating foreign investment and providing full support through the establishment of Special Economic Zones.
“Shandong is interested in establishing a maritime industrial complex in Pakistan,” the PMO statement read. “The Chinese company will also develop a green shipbreaking yard in the country.”
Both sides were briefed on Pakistan’s significant potential in shipbreaking and recycling industries. Gadani, located in southwestern Balochistan, was once a major global hub for dismantling end-of-life vessels, where steel and other ship parts were recycled and repurposed.
To revitalize the sector, the Pakistani government approved Rs12 billion (approximately $42 million) in June to transform Gadani into a modern, environmentally sustainable facility capable of managing hazardous waste and reducing pollution, according to the Ministry of Maritime Affairs.
In addition to maritime initiatives, the Chinese company also expressed interest in tapping into Pakistan’s fishing and date-processing industries, recognizing the country’s untapped potential in these sectors.
Pakistan has been actively seeking foreign investment to stabilize its economy, which narrowly avoided default in 2023 thanks to an IMF bailout program.
China remains a critical economic and strategic partner for Pakistan. Since 2013, Beijing has invested tens of billions of dollars in Pakistan under the China-Pakistan Economic Corridor (CPEC), a flagship project of China’s Belt and Road Initiative aimed at developing land and maritime trade routes connecting Asia with Africa and Europe.