Pakistan and Russia are set to collaborate on the establishment of a new state-of-the-art steel mill in Karachi marking a fresh chapter in bilateral economic cooperation between the two countries.
A joint working group will soon be formed to oversee the planning and construction of the facility, which is expected to be built on a 700-acre section of the existing Pakistan Steel Mills (PSM) site, officials said on Tuesday.
The development came following a high-level meeting between Special Assistant to the Prime Minister on Investment Haroon Akhtar Khan and Russian trade representative Deniz Zarov. Both sides held detailed discussions on the steel mill project, as well as other potential business ventures.
Speaking to reporters after the meeting, Mr Haroon Khan said the new mill would be a significant step toward revitalising Pakistan’s industrial base and attracting foreign direct investment.
“PM Shehbaz is committed to promoting investment and strengthening industrial infrastructure in the country,” he said. “This is the best time to invest in Pakistan. We are a strong and safe country for international investors.”
The proposed steel mill is part of a broader effort to redevelop the dormant PSM facility, which ceased operations in 2015 due to persistent losses and administrative issues. Officials say the government has earmarked a portion of the mill’s 19,000-acre landholding for this new joint venture.
“The collaboration with Russia will not only bring advanced technology but also enhance our capacity to produce steel locally, reducing dependence on imports,” Mr Khan added.
Russian envoy Deniz Zarov expressed optimism about the partnership and underscored the potential for deeper economic engagement between the two countries. “There is great scope for cooperation, and we are keen to build a long-term industrial relationship with Pakistan,” he said.
The initiative is seen as a key component of the government’s strategy to revive large-scale manufacturing and attract foreign investors into Pakistan’s core industrial sectors. A formal agreement is expected in the coming months, once the working group finalises the technical and financial details of the project.
Pakistan Steel Mills, once the backbone of the country’s steel production, was inaugurated in 1985 with technical assistance from the former Soviet Union. The new joint project, observers say, could mark a symbolic revival of Pakistan’s ties with Russia in the industrial sphere.
