- Construction underway on key social, industrial facilities
- Project targets compliance with Hong Kong Convention standards
Pakistan has begun a PKR 12 billion overhaul of the Gadani shipbreaking yard, aimed at upgrading vessel recycling infrastructure, improving environmental controls and strengthening safety standards across the country’s major ship recycling hub.
The project marks a push to modernise Gadani’s ship recycling operations and bring the yard closer to international standards. Key industrial components include hazardous and industrial waste-treatment systems, dedicated water-treatment facilities, fire and rescue infrastructure and 32 km of internal roads, all aimed at improving vessel dismantling and waste management.
Gadani targets modern ship recycling practices
The overhaul is focused on improving the infrastructure supporting ship recycling, particularly the handling and treatment of hazardous and industrial waste generated during vessel dismantling. Dedicated treatment facilities are planned alongside improved fire and emergency-response infrastructure.
The project also includes upgrades to internal roads, which are expected to improve movement and handling within the yard and support more efficient recycling operations.
Upgrade aligned with Hong Kong Convention
The modernisation aims to bring Gadani in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Alignment with the convention would strengthen the yard’s safety and environmental framework and support more compliant vessel recycling practices.
The project has entered the active procurement and construction phase, with PKR 780 million allocated under Pakistan’s Public Sector Development Programme for 2026-27.
Potential implications for Gadani’s recycling competitiveness
Gadani remains an important destination for end-of-life vessels and a significant source of recycled ferrous scrap for Pakistan’s steel industry. Improved recycling infrastructure could enhance the yard’s ability to handle vessels under stricter environmental and safety requirements.
The government has directed project authorities to maintain implementation momentum and ensure the new infrastructure meets operational benchmarks. The effectiveness of the upgrades will ultimately depend on their implementation and their impact on vessel handling, recycling efficiency and compliance at the yard.
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