Pakistan Begins Rs12 Billion Overhaul of Gadani Ship Recycling Yard
ISLAMABAD, PAKISTAN — WEB DESK: Pakistan has begun implementing a Rs12 billion modernization project for the Gadani ship recycling yard in Balochistan, with construction and procurement under way for infrastructure designed to improve worker safety, environmental protection and compliance with international ship-recycling standards.
Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry announced the latest progress while chairing a steering committee meeting on Thursday, saying physical work had begun on several key components of the project.
These include a 30-bed hospital, labour colony, school and solar-energy infrastructure, alongside extensive industrial and environmental facilities intended to transform Gadani from a traditional shipbreaking centre into a modern ship-recycling hub.
Project Enters Construction and Procurement Phase
Project Director Saeed Ahmed Umrani told the steering committee that implementation had entered an active procurement and construction phase.
The federal Public Sector Development Programme has allocated Rs780 million for the 2026-27 financial year to support the work, according to the government’s September 3 announcement.
The broader project includes approximately 32 kilometres of internal roads, a public park, fire and rescue stations, water-treatment facilities and systems for handling hazardous and industrial waste.
Chaudhry said the objective was to replace traditional shipbreaking practices with a safer and more environmentally responsible ship-recycling model while maintaining Gadani’s role in Pakistan’s steel-scrap supply chain.
The project is also intended to improve conditions for workers through healthcare, housing, education and emergency-response infrastructure.
Hong Kong Convention Drives Modernization
A central objective of the overhaul is to bring Gadani into compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which entered into force globally in June 2025.
The convention establishes international requirements for safely recycling end-of-life ships and managing hazardous materials while protecting workers and the environment.
Pakistan ratified the convention before its entry into force and has since been working with international organisations to strengthen its regulatory and operational framework for ship recycling.
The International Maritime Organization said in September 2025 that the federal initiative for Gadani was being managed by the Balochistan Development Authority and included a hazardous-waste treatment plant, hospital and other supporting infrastructure.
The International Labour Organization and IMO have also been implementing a separate Safe and Environmentally Sound Ship Recycling and Decent Work programme in Pakistan, focused on regulatory capacity, occupational safety, workers’ rights and hazardous-waste management, particularly at Gadani.
Rs12 Billion Project Was Approved Earlier
Thursday’s announcement is an implementation update rather than the first approval or conception of the project.
The government announced in June 2025 that Rs12 billion had been approved to transform Gadani into a model green ship-recycling facility. At the time, the Maritime Affairs Ministry said the project would focus on infrastructure, safety, pollution reduction and responsible hazardous-waste management.
Government planning documents have subsequently listed the Gadani modernization programme as a major maritime-sector development project. The 2025-26 Annual Plan, for example, described an approximately Rs12.2 billion modernization programme incorporating Hong Kong Convention-compliant infrastructure, a treatment, storage and disposal facility and worker-welfare systems.
A later 2026-27 budget report cited a project outlay of around Rs12.9 billion, reflecting a higher planning figure than the rounded Rs12 billion used in Thursday’s government announcement.
For current news reporting, Rs12 billion remains the appropriate headline figure because that is the amount cited by the Maritime Affairs Ministry in its September 3 implementation announcement.
Why Gadani Matters
Gadani, on the Balochistan coast, has historically been one of South Asia’s major shipbreaking locations, where end-of-life vessels are dismantled and their steel and other materials returned to industrial supply chains.
The government says the facility plays an important role in Pakistan’s steel-scrap market and associated supply chains.
However, shipbreaking is inherently hazardous. Workers can be exposed to heavy machinery, fires, explosions and toxic materials, while poor handling of asbestos, oil residues and other hazardous substances can create environmental and occupational-health risks.
The modernization programme is intended to address those weaknesses through purpose-built waste-management, emergency-response, healthcare and water-treatment infrastructure.
Worker Welfare Included in Overhaul
The project is notable for extending beyond purely industrial upgrades.
The planned 30-bed hospital, labour colony and school are designed to address the welfare of workers and families associated with the Gadani industry. Solar infrastructure is also being developed as part of the modernization programme.
The ILO says Pakistan’s wider ship-recycling reforms should combine environmental improvements with internationally recognised labour standards and occupational safety protections.
Whether the Gadani overhaul achieves those goals will depend not only on construction but also on enforcement, operational standards, worker training and long-term maintenance.
Part of Pakistan’s Wider Maritime Strategy
The project forms part of Pakistan’s broader effort to expand and modernize its maritime economy, including ports, shipping, fisheries and ship recycling.
Government planning documents identify the modernization of Gadani as a key ship-recycling initiative, while the Maritime Affairs Ministry has linked environmentally responsible recycling to its wider green-shipping and blue-economy policies.
Chaudhry has directed officials to maintain the pace of implementation and ensure that the infrastructure meets required operational benchmarks.
The latest development therefore marks a shift from earlier approvals and planning toward active procurement and physical construction, although completion of the full Rs12 billion programme remains ahead.
