Pakistan Begins $43m Gadani Shipyard Overhaul

Rs 12 Billion ($43m) project targets safer, greener ship recycling

September 3, 2026 at 3:12 PM
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Key Points 

  • Construction begins on hospital, labour colony and school
  • Upgrade includes roads, waste treatment and rescue facilities
  • Project aims to meet international ship-recycling standards

ISLAMABAD: Pakistan has begun work on a Rs12 billion ($43.3 million) project to modernise the Gadani shipbreaking yard, upgrading its infrastructure to improve worker safety, environmental protection and operational standards

This was disclosed by Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry on Thursday.

Chairing a steering committee meeting to review progress on the project, Chaudhry said physical construction was under way on key facilities, including a 30-bed hospital, the labour colony, school and solar power infrastructure.

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

He highlighted Gadani’s importance to Pakistan’s steel-scrap market and industrial supply chains, stressing the need to modernise the facility and improve conditions for workers and other stakeholders.

Pakistan’s shipyard project scope

The project covers both social and industrial infrastructure, including 32 kilometres of internal roads, a public park, hazardous and industrial waste treatment systems, fire and rescue stations and dedicated water treatment facilities.

Pakistan’s Project Director Saeed Ahmed Umrani told the committee that implementation had entered the active procurement and construction phase, supported by a Rs780 million ($2.8 million) allocation under the federal Public Sector Development Programme for 2026-27.

READ ALSO: Pakistan Opens First Hong Kong Convention-Certified Shipyard

The overhaul would bring the Gadani shipbreaking yard into compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, an international framework focused on safer ship recycling and environmentally sound management of hazardous materials.

The upgrade is expected to strengthen Pakistan’s ship-recycling infrastructure, improve occupational safety and reduce environmental risks associated with shipbreaking.

Chaudhry directed authorities to maintain momentum and ensure that all new infrastructure meets required operational, safety and environmental benchmarks.

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