ISLAMABAD: Pakistan and Russia on Friday signed an agreement to revive and expand the Pakistan Steel Mills (PSM).
Built 52 years ago in Karachi with Russia’s support, the PSM is a state-owned company that has the capacity to produce long-rolled and heavy metal products in the country. The PSM ceased operations in 2015.
The agreement was signed at the Pakistan Embassy in Moscow by secretary of industries and production Saif Anjum and general director of Industries Engineering LLC of Russia, Vadim Velichko.
Special Assistant to the Prime Minister, Haroon Akhtar Khan, witnessed the agreement signing at a ceremony together with Pakistan’s Ambassador to the Russian Federation Muhammad Khalid Jamali.
Speaking on the occasion, the special assistant to the PM said that reviving the Pakistan Steel Mills with the support of Russia reflected “our shared history and commitment to a stronger industrial future”.
The project aims to restart and expand the steel production in the country, marking a new chapter in bilateral cooperation.
Following the official closure of the PSM in 2024, the Sindh government sought Russia’s assistance in restoring the ageing infrastructure, which had been incurring losses for decades.
A high-powered delegation of Pakistan, led by Special Assistant to Prime Minister on Foreign Affairs, Tariq Fatemi, and Mr Haroon Akhtar Khan, who is also the focal person for the PSM project, held a meeting with Russia’s Deputy Prime Minister Alexei Overchuk in Moscow on Wednesday.
During the talks, Mr Akhtar conveyed to the Russian side that Pakistan’s government attached high importance to the ongoing discussions on the new Steel Mills in Karachi, as the project carried an important legacy of Pakistan’s relations with Russia, that could serve as a leap forward symbol of future cooperation and partnership.
Pakistan and Russia have also agreed to establish new steel mills in Karachi.
The idea of new steel mills was discussed during a meeting between Russian Representative Denis Nazaroof and Special Assistant Haroon Akhtar Khan.
Several attempts were made in the recent past to sell the PSM to global private ownership under the government’s programme, but the privatisation of Pakistan Steel Mills is not on the privatisation programme agenda for 2024-2029 of the present government.
The PSM is the largest industrial mega-corporation in the country, having a production capacity of 1.1 to 5.0 million tonnes of steel and iron foundries.
