ISLAMABAD: Pakistan and Russia have agreed to collaborate on establishing a new steel mill in Karachi, marking a significant step forward in strengthening bilateral industrial cooperation. The decision was reached during a follow-up meeting between Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, and a Russian delegation led by Denis Nazaroof.
The Russian side reaffirmed its commitment to support Pakistan’s steel sector and invited Pakistani representatives to an upcoming industry exhibition in Moscow. This follows earlier discussions in September 2024 between Russia’s Deputy Minister for Industry and Trade, Aleksei Gruzdev, and Pakistan’s then Minister for Industries, Rana Tanveer Hussain, where both nations agreed to form a joint working group to advance the proposal.
SAPM Khan underscored the government’s vision to attract foreign investment, stating that Pakistan offers a secure and promising environment for international investors. He emphasized the strategic location of the proposed steel mill site—700 acres within Pakistan Steel Mills (PSM) near Port Qasim—which would reduce transportation costs for raw materials.
Despite possessing estimated iron ore reserves of 1.887 billion tons, Pakistan imports approximately \$2.7 billion in iron and steel annually due to a production-demand gap of around 3.1 million tons and an outdated, fragmented industry comprising 600 small units.
Khan noted that Pakistan’s low per capita steel consumption signals room for growth, making this an ideal time for foreign investment. He invited Russian firms to explore broader industrial and agricultural collaboration.
The initiative aligns with a 2003 MoU between Pakistan and Russia to revamp PSM and a 2013 agreement involving Russian assistance and a proposed \$1 million credit line. The new steel mill venture is expected to revitalize Pakistan’s steel sector and enhance energy-efficient, large-scale industrial capacity.
Story by Abdul Rasheed Azad
