ISLAMABAD – In a significant step towards industrial cooperation, Pakistan and Russia have signed an agreement to revive the Pakistan Steel Mills (PSM) in Karachi — a major industrial complex that has remained non-functional since 2015.
The agreement was formalized at the Pakistan Embassy in Moscow, where Secretary for Industries and Production Saif Anjum and Vadim Velichko, General Director of Industrial Engineering LLC, signed the document. The ceremony was witnessed by Special Assistant to the Prime Minister on Industrial Affairs Haroon Akhtar Khan and Ambassador Khalid Jamali.
A Strategic Revival
Originally built with Russian support in the 1970s, the Pakistan Steel Mills had a production capacity ranging from 1.1 to 5 million tonnes before operations ceased. The newly signed agreement aims not only to restore PSM’s operations but also to develop additional steel production facilities in Karachi.
Strengthening Bilateral Ties
During earlier meetings in Moscow, Russian Deputy Prime Minister Alexei Overchuk reaffirmed the historical and strategic significance of industrial cooperation between the two countries. Haroon Akhtar Khan termed the agreement a “revival of legacy” and a renewed step towards long-term economic collaboration.
Shift in Policy
The federal government has excluded PSM from its 2024–2029 privatisation roadmap, opting instead for a state-led revitalization model. This move is seen as a strategic decision to retain key national assets under public oversight while leveraging foreign expertise.
Economic Impact
The revival of PSM is expected to create thousands of jobs, reduce Pakistan’s dependence on steel imports, and strengthen the local industrial base. Work on the ground is expected to begin soon, with technology upgrades and expansion plans also under consideration.
This story has been reported by PakTribune. All rights reserved.