Pakistan’s Gadani shipbreaking yard, the third largest in the world, has become a dumping ground for old cruise ships and oil tankers from wealthy nations, often in violation of international law. A recent investigation has revealed that vessels from Europe, the Middle East, and China are being dismantled at the yard under hazardous and poorly regulated conditions, bypassing global regulations meant to protect workers and the environment.

Despite being party to major international agreements such as the Basel Convention and the Hong Kong Convention, Pakistan faces widespread non-compliance at its shipbreaking yards. These conventions prohibit the export of end-of-life ships, classified as hazardous waste, from developed to developing countries without prior informed consent. Yet, many vessels reach Gadani illegally through third-party cash buyers, shell companies, or reflagging under countries with lax oversight.

In Gadani, ships are dismantled using the outdated beaching method. Workers cut massive vessels by hand, often barefoot or with minimal protective gear. Since 2009, over 447 fatalities have been reported across South Asia’s shipbreaking sector, with multiple deaths occurring in Gadani due to explosions, toxic exposure, and collapsing structures. In 2016, an explosion aboard a dismantled oil tanker killed dozens, with investigations later revealing the ship carried illegally smuggled fuel.

The environmental toll is equally severe. Hazardous substances such as asbestos, mercury, polychlorinated biphenyls (PCBs), and residual oil leak into the soil and sea. Studies have found elevated levels of heavy metals in fish caught off the coast near Gadani, raising alarms over long-term health risks to local communities.

Pakistan scrapped 111 ships in 2024, contributing around 15 percent of global ship recycling tonnage. The industry remains crucial for the country’s economy, supplying cheap steel to domestic industries and providing employment to thousands. However, with the Hong Kong Convention set to come into force on June 26, 2025, the pressure is mounting for Pakistan to reform the sector.

Currently, no facility in Gadani is compliant with the new international safety and environmental standards. The government has proposed using the Karachi Shipyard and Engineering Works as a temporary alternative for smaller vessels while Gadani’s yards undergo upgrades. Balochistan’s provincial government recently announced a Rs 12 billion plan to modernize the industry, including the development of hazardous waste storage sites, worker safety systems, fire stations, and environmental monitoring.

While these steps show intent, enforcement remains weak. Environmental activists and labor rights groups warn that unless Pakistan strengthens its regulatory mechanisms and halts the inflow of illegally exported vessels, the shipbreaking industry will continue to operate at the cost of human lives and the environment.

-Business Insider