Pakistan and Russia have signed a strategic deal to revive the iconic Pakistan Steel Mills and build new steel plants in Karachi, marking a new era in industrial ties.
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| Reviving a Soviet-era legacy, Pakistan and Russia have signed an agreement to rebuild Pakistan Steel Mills and expand steel production in Karachi. Symbolic Image: CH |
Moscow, Russia — July 12, 2025:
Pakistan and Russia have taken a significant step toward strengthening industrial cooperation with the signing of a landmark agreement to revive the defunct Pakistan Steel Mills (PSM) and construct new steel production facilities in Karachi. The agreement was inked at the Pakistan Embassy in Moscow on Friday, symbolizing not only economic ambition but also a rekindling of historical ties.
The pact was formalized by Pakistan’s Secretary of Industries and Production Saif Anjum and Vadim Velichko, General Director of Industries Engineering LLC of Russia. The signing ceremony was witnessed by Special Assistant to the Prime Minister Haroon Akhtar Khan and Pakistan’s Ambassador to Russia, Muhammad Khalid Jamali.
Built 52 years ago in Karachi with Soviet support, the Pakistan Steel Mills once stood as a symbol of industrial strength. With a capacity to produce over 1 million tonnes of steel annually, the state-owned enterprise fell into decline and ceased operations in 2015. After a formal closure in 2024, the government of Sindh sought Russian assistance to restore the facility.
“This project reflects a shared legacy and signals our commitment to a renewed industrial future,” said Haroon Akhtar Khan. He added that the initiative not only revives the original steel mill but also sets the stage for broader cooperation with new production sites planned in Karachi.
Earlier in the week, a Pakistani delegation led by Akhtar and Special Assistant on Foreign Affairs Tariq Fatemi held high-level talks in Moscow with Russian Deputy Prime Minister Alexei Overchuk. During the meeting, Pakistan conveyed the strategic importance of reviving PSM as a symbol of its enduring ties with Russia.
In a separate discussion with Russian official Denis Nazaroof, plans were also laid out for new steel plants, which will incorporate modern technology and align with Pakistan’s future industrial framework. These facilities are expected to diversify the country’s steel production and reduce reliance on imports.
Despite several past attempts to privatize the PSM, the current administration has removed it from its 2024–2029 privatization roadmap, preferring strategic development through international partnerships. The PSM, formerly Pakistan’s largest industrial complex, had the infrastructure to scale production up to 5 million tonnes annually.
With Russian technical expertise and renewed political will, the revival of Pakistan Steel Mills marks a pivotal chapter in both economic diplomacy and national development. It not only honors the past but also redefines the future of Pakistan’s industrial sector, forging a steel bond between Islamabad and Moscow.