Abstract:
Ship Recycling Industry is an important industry in Pakistan, India and Bangladesh. Its association with steel sector makes it a pivotal industry for sustainable economic growth by providing jobs, steel scrap, saving foreign exchange, augmenting national GDP and protecting environment while providing platform for steel diplomacy and climate leadership. Industry is on the verge of decline due to fluctuation in dollar rates, Covid-19 pandemic and changing tax regimes. International and regional politics is also visible and remain a source of concern. It is imperative to reinvigorate this industry for sustainable economic growth as restore a respect able stature in maritime community. This study has been conducted using mixed-method approach.The economic impact is assessed through the quantitative data from previous studies and interview of think tanks representatives, while the qualitative component based on semi structured interviews of professionals associated with ship recycling and steel industry. These professionals include rep of think tanks, steel industry, rep of Baluchistan government and ship breaking yard owners. The study comprises of two main parts, introduction to thesis and findings and discussion. Introduction part comprises of first three chapters also including literature review and research methodology. Second part consists of 4 Chapters. It is comprised of discussion analysis and findings which try to answers the research questions regarding importance of ship recycling in national GDP, Blue Economy (BE), and international diplomacy is answered. The Sustainable Development Theory has been adopted as the analytical framework, offering an inclusive lens to examine economic security, human security, climate change, and the sustainability of the industry. Pakistan enjoys a favourable location, quality beaches at Gadani, and a functional public-private partnership to support this industry. If optimally utilized, industry has the potential to generate 7.5 Bn USD in national GDP. In this regard, geopolitical opportunities and challenges are also discussed.The research suggests that ship recycling has enormous potential to make a significant impact on the blue economy, national GDP, international relations, and the global environment. It also recommends implementing the Hong Kong Convention (HKC) in true letter and spirit to ensure a consistent supply of EndofOperational Life (EOL) ships in the industry. Moreover, industry requires mandatory support to maintain its facilities during periods of high scrap steel prices. By implementing HKC guidelines and obtaining certification, the industry can position itself to benefit from approximately 15,000 ships expected to retire over the next decade.
