Pakistan begins $43M upgrade of Gadani shipbreaking yard

ISLAMABAD: Pakistan has begun a 12 billion rupee ($43 million) project to modernize the Gadani shipbreaking yard, with the government seeking to improve safety and environmental standards at one of the country’s major ship-recycling facilities, according to the Associated Press of Pakistan. 

Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry announced the development Thursday while chairing a meeting of a steering committee overseeing the project.

Construction is underway on several facilities, including a 30-bed hospital, a labor colony, a school and solar power infrastructure, according to officials.

“Our objective is to transform Gadani's traditional shipbreaking practices into a modern, safe, and environmentally responsible ship-recycling industry that meets global standards,” Chaudhry said.

The project also includes 32 kilometers (20 miles) of internal roads, a public park, systems for treating hazardous and industrial waste, fire and rescue stations and dedicated water-treatment facilities.

Home of shipbreaking

Gadani, in Pakistan's southwestern Balochistan province, is a major source of steel scrap for the country's industrial supply chains. Shipbreaking involves dismantling retired vessels to recover steel and other materials, but the industry can pose significant risks to workers and the environment when safety and waste-management systems are inadequate.

Project Director Saeed Ahmed Umrani told the committee that implementation has moved into the active procurement and construction phase. The project has received an allocation of 780 million rupees ($2.8 million) under the federal Public Sector Development Program for the 2026-27 fiscal year.

The modernization is intended to bring the shipbreaking yard into compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, an international framework aimed at improving conditions for workers and reducing environmental risks associated with ship recycling.

Chaudhry directed project authorities to maintain the pace of implementation and ensure that newly constructed facilities meet required operational and safety standards.

The government says the overhaul is intended to turn Gadani into a safer and more environmentally responsible ship-recycling center while maintaining its role in Pakistan's steel-scrap supply chain.