ISLAMABAD: The federal minister for power has voiced dismay over the Power Division being excluded from consultations on electricity consumption data for the shipbreaking and recycling sector, which is crucial for tariff categorisation and determination by the National Electric Power Regulatory Authority (Nepra).
At a recent Economic Coordination Committee (ECC) meeting, the issue of formally declaring shipbreaking and recycling an industry was discussed. The ECC instructed the Maritime Affairs Division to consult the Power Division while compiling consumption data, after the minister raised objections that his ministry had not been taken on board.
The Maritime Affairs Division highlighted that Gaddani, once the world’s third-largest shipbreaking hub, continues to operate largely informally, though the Balochistan Development Authority has already recognised ship recycling as an industry. The sector employs 20,000–24,000 workers directly, with indirect employment opportunities for many more, especially women in surrounding communities.
Ship recycling supplies re-rollable scrap—a vital raw material for re-rolling into construction bars and tools—and re-meltable scrap (HMS 1&2), used by steel furnaces to produce billets and re-bars. Officials stressed that declaring the sector an industry would boost domestic steel production, support cottage industries, and strengthen the supply chain for construction and agriculture tools.
The ministry also reminded the forum that Pakistan acceded to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships in November 2023. The treaty, effective June 25, 2025, requires member states to adopt safe, environmentally responsible ship recycling practices, making formal industry recognition urgent.
The Ministry of Industries and Production noted that although no specific law defines which sectors qualify as “industries,” such decisions are made through cabinet approval on ECC recommendations. Following consultations with the ministries of commerce, finance, and FBR, all of whom supported the move, the ECC endorsed the proposal to grant industry status to shipbreaking and recycling.
