Pakistan: No hurry to sign ship-breaking accord

The government on Saturday took a leap forward to revive the ship-breaking industry after industrialists portrayed a bleak picture of the already suffering sector. Additional Secretary Ministry of Environment, Kamran Qureshi, asked the Pakistan Ship-breaking Association (PSBA) and government departments to prepare a PC-1 by the end of current month and submit it to the federal government for approval.
Talking to the participants of a meeting held to discuss signing or ratifying the ‘Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships,’ the additional secretary assured the participants that the country would sign the convention after taking all stakeholders into confidence.
“People have become more conscious of the hazards of ship-breaking and we want to make this industry environment-friendly,” Qureshi said.
“However, we are not in a haste to sign or ratify the convention. We shall deeply study the convention and see if any clause could harm our industry,” he assured PSBA representatives.
He also asked the stakeholders to study the convention and propose amendments, if any. “Unless you are satisfied, we are not satisfied and we shall not go further unless you are satisfied.”
During the meeting, the PSBA representatives reported lack of facilities at the Gadani ship-breaking yard. “We even do not have drinking water, electricity, PTCL lines and waste landfill,” said PSBA member Asif Ali Khan.
“We are working in an atmosphere of poor infrastructure, high taxes and mounting tariff pressure,” Asif said. “We do not have child labour, industry is mechanised, people wear proper uniform, goggles and gloves to be safe from hazards.”
Asif proposed to the government not to sign or ratify the convention in haste. “Let us first consider it in our as well as regional perspective. Let there be no losses to entrepreneurs and employees.”
Referring to India and Bangladesh, Asif said, India has abolished sales tax on ship breaking industry and Bangladesh has also given a number of incentives to their industry.
“That is what makes a difference and today industry in these countries was flourishing contrary to Pakistan where it is shrinking.”
Earlier during the presentation, a World Bank consultant informed the meeting that in 80s the volume of employment in this industry was 30,000 and 160 vessels were broken every year. “But, now the jobs volume has shrunk to just 6000 to 8000 people and only 50 to 60 ships are broken yearly.”
He mentioned to international competition, tax and regulatory regimes and depreciation in rupee value as major causes behind decline in the ship breaking industry.
Taking cognisance of the downward trend and flourishing of this industry in other regional countries, Additional Secretary Kamran Qureshi directed to immediately prepare a plan to ensure more facilities for the industry and make it further secure and environment friendly.
“We have concerns on this pathetic situation of the industry. This industry is also dear to us and we shall ensure necessary facilities for it,” he said.
He assured the industry not to ratify the Convention in haste and added, “we will discuss the issue at all relevant fora and evolve a consensus before any decision.”
“It is in our collective as well as national interest to protect this industry. We are here to gear up this industry, not to harm it,” he added.
The participants also recommended training of workforce, laying down infrastructure and providing congenial environment to which the Additional Secretary agreed and assured all out support of the Ministry and the government.