KARACHI: Authorities have begun work on a Rs12 billion [$43.3 million] project to overhaul a ship-breaking yard in southwestern Pakistan, Maritime Affairs Minister Junaid Anwar Chaudhry said on Thursday, as Islamabad aims to modernize the facility and align it with international safety and environmental standards.

Chaudhry announced approving $43.3 million in June 2025 for a project to turn a prominent ship-breaking yard in the southwestern coastal town of Gadani into a model green facility. Decades ago, Gadani used to counted among the world’s main destinations for end-of-life vessels, where old and decommissioned ships were regularly dismantled and their parts recycled, reused or resold.

However, business at the shipyard declined over the years as Pakistan grappled with a 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.

“Our objective is to transform Gadani’s traditional ship-breaking practices into a modern, safe, and environmentally responsible ship-recycling industry that meets global standards,” Chaudhry said while chairing a steering committee meeting to review progress on the project.

The minister said construction is underway on key facilities in Gadani, including a 30-bed hospital, a labor colony, a school, and solar power infrastructure, the Maritime Affairs Ministry said in a statement.

It added that the project covers both social and industrial infrastructure, incorporating 32 kilometers of internal roads, a public park, hazardous and industrial waste-treatment systems, fire and rescue stations, and dedicated water treatment facilities.

Project Director Saeed Ahmed Umrani briefed the committee that implementation has entered the “active procurement and construction phase,” backed by a federal Public Sector Development Programme (PSDP) allocation of Rs780 [$2.8 million] for 2026–27.

“The overhaul aims to bring Gadani in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships,” the ministry said, referring to an International Maritime Organization (IMO) treaty that establishes global regulations to ensure safe ship recycling.

Chaudhry directed project authorities to maintain implementation momentum and ensure all new infrastructure meets strict operational benchmarks, the ministry said.