- Government upgrades Gadani to global recycling standards
- Commercial shipbuilding revival complements broader maritime strategy
Pakistan is accelerating efforts to revive the Gadani Ship Breaking Yard, reinforcing its position as one of South Asia’s key ship recycling hubs under a broader government strategy to strengthen the country’s maritime sector. The initiative combines infrastructure upgrades, regulatory reforms, and renewed investment aimed at boosting domestic scrap availability, reducing import dependence, and supporting the steel industry.
Government revives Gadani through infrastructure upgrades
The government, with support from the National Logistics Corporation (NLC) and other agencies under the Maritime Task Force, has brought seven vessels to Gadani for recycling under its revival programme. The ship recycling sector has also been granted formal industrial status, while authorities continue upgrading yard infrastructure to comply with the International Maritime Organization (IMO) standards and the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).
Gadani aligns with global ship recycling standards
Of Gadani’s 16 ship recycling plots, nine have been upgraded, while the remaining seven are undergoing inspection and approval. The government also plans to establish a Treatment, Storage and Disposal (TSD) facility to ensure the environmentally sound handling of hazardous waste generated during ship dismantling.
Ship recycling to support Pakistan’s steel sector
Officials estimate that each recycled vessel could contribute around $25 million to Pakistan’s economy. Once fully operational, Gadani is expected to supply nearly 30% of the country’s steel scrap requirement, reducing reliance on imported ferrous scrap while creating employment and supporting downstream steel manufacturing.
Global scinario
India currently leads the region in Hong Kong International Convention (HKC) compliance, with 115-120 of its 131 operational ship recycling yards certified. Bangladesh has more than 25-30 HKC-certified yards out of around 130 ship recycling facilities, with certification gradually increasing as yard upgrades continue. In Pakistan, nine of Gadani’s 16 ship recycling plots have been upgraded to HKC-compliant standards, while the remaining yards are undergoing inspection and approval as part of the government’s modernisation programme.
Commercial shipbuilding revival complements maritime reforms
Pakistan’s push to modernise the Gadani ship recycling sector coincides with the revival of commercial shipbuilding, with construction underway on a 1,100-TEU feeder containership at Karachi Shipyard & Engineering Works (KSEW). Together, these initiatives reflect the country’s broader strategy to strengthen its maritime sector, reduce import dependence, and support long-term growth across the steel, shipping, and manufacturing industries.
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