The government of Pakistan has approved a significant investment of Rs12 billion, equivalent to $42 million, to transform the Gadani ship-breaking yard in Balochistan into a “model green facility.” This initiative aims to reduce pollution and enhance the management of hazardous waste, according to a statement from the maritime affairs ministry. Historically, Gadani was a major global destination for dismantling decommissioned vessels, where valuable materials, especially steel, were recycled and resold. However, in recent years, the ship-breaking industry in Pakistan has suffered due to an ongoing economic crisis and increasing international calls to abandon beach scrapping practices. As a result, workers, some earning as little as $4 a day, have faced dangerous working conditions, including exposure to toxic materials such as lead paint and asbestos.
The Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, emphasized the need to evolve the ship recycling industry to meet international sustainability standards. He stated that the transformation of the Gadani facility is not just about modernizing infrastructure; it’s also a crucial step towards reducing pollution and tackling the climate crisis through environmentally responsible ship recycling. In addition to the facility’s modernization, the project includes significant social initiatives. A new 30-bed hospital, residential blocks for medical staff, and labor colonies will be established.
Additionally, infrastructure developments will include 32 kilometers of roads, a school, a public park, and modern water supply systems to support both the workforce and the local community. Furthermore, Pakistan recently became a party to the 2009 Hong Kong Convention, aimed at improving hazardous working conditions in ship recycling. Minister Chaudhry stressed the importance of adhering to this convention and called for a rigorous monitoring mechanism to ensure transparency and timely implementation of the project. Gadani currently produces over 1.2 million tons of steel annually, making it a critical component of Pakistan’s scrap and steel supply chain.
Chaudhry remarked that, at this critical juncture, it is essential to modernize Gadani to align with green shipping goals, or risk further decline.