Pakistan and Russia Seal $2.6B Deal to Resurrect Steel Mills in Karachi!
Historic agreement revives Pakistan Steel Mills, aiming to slash steel imports by 30% and boost industrial growth with Russian technology.
Pakistan and Russia have signed a landmark agreement to restore and modernize the Pakistan Steel Mills (PSM) in Karachi, signaling a new era of industrial cooperation. The deal, formalized on Friday at the Pakistan Embassy in Moscow, was signed by Pakistan’s Secretary of Industries and Production Saif Anjum and Vadim Velichko, General Director of Russia’s Industrial Engineering LLC, in the presence of Special Assistant to the Prime Minister Haroon Akhtar Khan and Ambassador Muhammad Khalid Jamali.
The project aims to revive the Soviet-built PSM, operational since 1971 but dormant since 2015 due to mismanagement and losses exceeding PKR 200 billion by 2018. Russia’s advanced steelmaking technology will modernize the facility, utilizing 700 acres of PSM’s 19,000-acre site to process Pakistan’s 1.4 billion tons of iron ore reserves. The initiative is expected to cut Pakistan’s $2.6 billion steel import bill by 30%, addressing a 3.1 million-ton supply gap.
“Reviving PSM with Russia’s support reflects our shared history and commitment to a stronger industrial future,” said Haroon Akhtar Khan, aligning the project with Prime Minister Shehbaz Sharif’s vision. The agreement outpaced a competing Chinese bid, leveraging Russia’s historical role in building PSM. Economists predict the plant, set to be commissioned within two years, will boost jobs and reduce foreign exchange pressures, marking a step toward Pakistan’s industrial self-sufficiency.
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