Pakistan and Russia Partner to Revitalize Pakistan Steel Mills

Pakistan and Russia have formalized an agreement, marking a significant stride in their industrial cooperation, to rehabilitate and modernize Pakistan Steel Mills (PSM) situated in Karachi.

The protocol was officially signed at the Pakistan Embassy in Moscow. Representing Pakistan was Saif Anjum, the Secretary of Industries and Production, while Vadim Velichko, the General Director of Industrial Engineering LLC, signed on behalf of Russia. The ceremony was witnessed by SAPM Haroon Akhtar Khan and Pakistan’s Ambassador to the Russian Federation, Muhammad Khalid Jamali.

This collaborative venture is geared towards not only recommencing steel production but also amplifying its capacity, heralding a fresh phase in the countries’ cooperative engagements.

SAPM Khan commented, “The reactivation of PSM with Russian assistance underscores our mutual heritage and dedication to fostering a robust industrial landscape.”

In a recent discussion, SAPM Khan mentioned that specialists are evaluating the current state of PSM’s equipment. If half of the machinery is viable, the government intends to proceed with the restoration of PSM through collaboration with Russia.

He further noted that PSM possesses 18,660 acres of land, with 710 acres earmarked for the potential development of a new steel manufacturing facility.

Authorities indicate that despite Pakistan’s substantial iron ore reserves, estimated at 1.887 billion tons, the nation still imports approximately $2.7 billion worth of steel annually.

According to officials, the domestic steel output is insufficient to satisfy the national demand, resulting in a supply shortfall of 3.1 million tons in the past year.

Originally constructed with Soviet support in 1973, PSM stands as an enduring symbol of the enduring Pakistan-Russia connection.