Pakistan, Russia Sign Strategic Agreement for Steel Revival
Pakistan and Russia have signed a landmark deal with Russia to revive and expand the Pakistan Steel Mills (PSM), marking a renewed era of industrial cooperation between the 2 nations. PSM was constructed 52 years ago in Karachi with the assistance of the then-Soviet Union and had been idle since 2015. This deal is meant to revive the facility and increase its operations.
Officials signed the deal at the Pakistan Embassy in Moscow. Saif Anjum, Secretary of Industries and Production, and Vadim Velichko, General Director of Russia’s Industries Engineering LLC, inked the deal. Haroon Akhtar Khan and Pakistan’s Ambassador to Russia Muhammad Khalid Jamali attended and witnessed the signing.
Addressing the event, Mr Haroon Akhtar Khan emphasized the historical relations and common vision between Islamabad and Moscow. According to him, the project is not only a reflection of a common legacy but also a demonstration of a common desire to a better industrial future of Pakistan.
Karachi to Host New Steel Mills as Pakistan, Russia Boost Cooperation
Pakistan and Russia have also signed an agreement to construct new steel mills in Karachi along with reviving the PSM. This is a new era in bilateral relations, which will help Pakistan to improve its domestic steel production capacity.
After the official closure of PSM in 2024, the Sindh government turned to Russia to offer technical support to reconstruct the dilapidated infrastructure of the mill. The factory had been making losses over the years.
A top Pakistani delegation headed by Special Assistant to the Prime Minister on Foreign Affairs, Tariq Fatemi, and Mr Haroon Akhtar Khan, the focal person of the PSM revival project, visited Moscow. They also held a meeting with the Deputy Prime Minister of Russia Alexei Overchuk and stressed the importance of the restoration and growth of the steel industry as a sign of good bilateral relations.
Russian representative Denis Nazaroof and Mr Haroon Akhtar Khan discussed further the establishment of new steel plants in Karachi.
Previously, the government attempted to privatise Pakistan Steel Mills (PSM) as part of its privatisation agenda. However, the current administration has omitted PSM from its privatisation plans for 2024-2029. This decision plainly demonstrates the government’s determined resolve to keep the mill under state ownership.
Moreover, PSM is Pakistan’s largest industrial complex. It can produce between 1.1 and 5.0 million tonnes of steel and iron foundries. Russia’s fresh backing will help the mill reclaim its position as a vital component of the country’s industrial infrastructure.
