Pakistan has announced plans to expand its ship recycling industry into a $2 billion market over the next ten years by modernising the Gaddani Ship Recycling Yard.
The initiative aims to improve safety, environmental standards, and worker welfare while strengthening Pakistan’s position in the global ship recycling sector.
As part of the plan, the government will adopt the Hong Kong International Convention (HKC) along with recommendations of the International Labour Organization (ILO).
These standards focus on safe ship dismantling, environmental protection, and better working conditions. Officials believe this will help Pakistan attract more international business and investment.
The modernisation programme includes major infrastructure upgrades at Gaddani. New hospitals, schools, improved roads, and worker housing are planned to support labour welfare.
The shipbreaking yards will also be redesigned to be environmentally friendly, with systems for pollution control and proper waste management.
Global demand for ship recycling is expected to increase significantly, with more than 15,000 vessels likely to be retired worldwide in the coming years.
Pakistan, already the world’s third-largest ship recycling centre, aims to secure a larger share of this growing market.
Officials said the initiative will help bring in foreign investment, create employment opportunities, and strengthen the country’s circular steel economy. Recycled steel from ships plays an important role in meeting domestic demand and reducing dependence on imports.
The government also wants to position Gaddani as a regional model for green ship recycling.
By focusing on safety, sustainability and international compliance, Pakistan hopes to achieve long-term economic growth while protecting workers and the environment.