Pakistan Has the World’s Third-Largest Ship-Breaking Industry

Ship-Breaking Industry

Pakistan operates the third-largest ship-breaking industry in the world, with its core activities centered at the Gadani shipbreaking yard near Karachi. The sector plays a vital role in the national economy by recycling steel, meeting local metal demand, and providing employment to thousands of workers.

Despite its economic importance, the industry has faced long-standing criticism over unsafe working conditions and environmental damage. Worker safety, waste management, and pollution control have remained major concerns for years.

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In a recent positive development, Pakistan’s first ship recycling yard has received certification under the Hong Kong International Convention, marking a significant step toward meeting international safety and environmental standards. This certification reflects growing efforts to modernize the sector and align it with global best practices.

Experts believe that with stronger regulatory enforcement, improved infrastructure, and better compliance, Pakistan could further enhance its global standing and competitiveness in the ship-breaking market while ensuring safer and more sustainable operations.

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