The government has sanctioned Rs12 billion for the transformation of the Gadani yard.

Federal Minister for maritime Affairs Muhammad Junaid Anwar Chaudhry has declared the allocation of Rs12 billion for the conversion of the Gadani Ship-Breaking Yard into a model green facility, ensuring compliance with international climatic and environmental norms in the marine industry.

In an official statement issued on Wednesday, Chaudhry emphasized the ship-breaking industry’s economic contribution and its prospective role in the nation’s climate resilience strategy during a high-level discussion on the Gadani redevelopment.

Ship recycling must progress to align with global sustainability norms. “This transformation is crucial for mitigating pollution, managing hazardous waste responsibly, and fostering a more sustainable maritime future,” he stated.

The maritime minister stated that this significant project aims to modernize infrastructure and safety systems while also tackling the climate issue through sustainable shipping practices and eco-friendly ship recycling.

Secretary of Maritime Affairs Syed Zafar Ali Shah informed the minister that a 30-bed hospital, residential accommodations for medical personnel, and labor colonies will be established as part of the project’s social development component. Furthermore, 32 kilometers of roads, a school, a public park, and contemporary water supply and treatment facilities will be established to assist the labor and local population.

The minister instructed the pertinent authorities to create a comprehensive monitoring system to guarantee transparency and prompt execution of the project. He emphasized that the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) must be rigorously adhered to.

He observed that Gadani generates about 1.2 million tonnes of steel each year, rendering it an essential component of Pakistan’s scrap and steel supply chain. After years of stagnation, the industry is now confronting significant problems in maintaining competitiveness with regional rivals.

“Gadani was formerly one of the largest ship-breaking centers globally.” Today, it is at a pivotal juncture — we must either modernize it in accordance with green shipping objectives or face the prospect of future deterioration,” he said.

Chaudhry underscored that the rejuvenation of Gadani would advance Pakistan’s overarching climate objectives, bolster the green economy, and reestablish the nation as a regional frontrunner in sustainable ship recycling.

He reiterated his dedication to collaborating with provincial governments and industry partners to position Gadani as a benchmark yard for safe, climate-resilient, and economically sustainable ship-breaking.