ISLAMABAD: Pakistan鈥檚 government has approved Rs12 billion [$42 million] to transform a key ship-breaking yard in the country鈥檚 southwestern Balochistan province into a 鈥渕odel green facility鈥� to reduce pollution and manage hazardous waste, the maritime affairs ministry said on Wednesday.

Gadani in Balochistan once used to be one of the world鈥檚 main destinations for end-of-life vessels. Here, old and decommissioned ships were regularly dismantled and their parts, especially steel, were recycled, reused or resold. 

Business at the shipyard has declined in recent years as Pakistan navigates a tricky path to recovery from a prolonged macroeconomic crisis. The ship-breaking industry has also taken a hit due to worldwide calls to stop beach scrapping because of the danger and environmental damage from pollutants left to drain into the sea. Workers, earning as little as $4 a day here, face health hazards such as exposure to lead paint and asbestos when working on ships.

鈥淔ederal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry has announced the approval of Rs12 billion for the transformation of Gadani Ship-Breaking Yard into a model green facility, aligning the maritime sector with international climate and environmental standards,鈥� the ministry said. 

Chaudhry, chairing a meeting to discuss the ship-breaking yard, stressed the need for ship recycling to evolve to meet global sustainability standards. He added the transformation is essential to reduce pollution, manage hazardous waste responsibly and contribute to a greener maritime future.

鈥淭he minister said this major initiative focuses not only on modernizing infrastructure and safety mechanisms but also on addressing the climate crisis through green shipping and environmentally responsible ship recycling,鈥� the statement added. 

Pakistan is consistently ranked among the world鈥檚 worst-affected countries due to climate change effects. Pakistan has regularly experienced irregular weather patterns such as heatwaves and unusually heavy rains that have triggered flash floods across the country. 

Syed Zafar Ali Shah, the secretary of maritime affairs, said a 30-bed hospital, residential blocks for medical staff and labor colonies will be constructed as part of the social uplift component of the project.

The official said that 32 kilometers of road, a school, a public park and modern water supply and treatment systems will be installed to support the workforce and local community in Gadani as part of the project.

Pakistan became a party to the 2009 Hong Kong Convention in December 2023, which aims to improve hazardous working conditions in ship recycling facilities worldwide. 

The minister stressed that the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) must be strictly observed. He instructed authorities to put in place a 鈥渞obust monitoring mechanism鈥� to ensure transparency and timely implementation of the project.

Chaudhry noted that Gadani produces over 1.2 million tons of steel annually, making it a critical part of Pakistan鈥檚 scrap and steel supply chain. 

鈥淕adani was once among the world鈥檚 largest ship-breaking hubs,鈥� Chaudhry noted. 鈥淭oday, it stands at a crossroads鈥� either we modernize it in line with green shipping goals or risk further decline.鈥�