Pakistan and Russia are set to collaborate on the development of a modern steel plant in Karachi, signaling a renewed phase of economic cooperation between the two nations.
According to officials, a joint working group will soon be established to manage the planning and construction of the facility, which is expected to occupy 700 acres within the premises of the Pakistan Steel Mills (PSM) complex.
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The announcement followed a high-level meeting between Haroon Akhtar Khan, Special Assistant to the Prime Minister on Investment, and Russian trade representative Deniz Zarov. The two discussed the proposed steel plant and explored additional opportunities for bilateral trade and investment.
Speaking after the meeting, Haroon Akhtar highlighted the importance of the project in revitalizing Pakistan’s industrial landscape and attracting foreign investment. “Prime Minister Shehbaz is fully committed to strengthening industrial infrastructure and promoting investment in the country,” he said. “This is the ideal time for international investors to engage with Pakistan.”
The planned facility is part of a broader government initiative to redevelop the long-inactive Pakistan Steel Mills, which halted operations in 2015 due to financial and management challenges. A designated area within its 19,000-acre site has been allocated for this joint venture.
Haroon Akhtar noted that the collaboration with Russia would introduce cutting-edge technology and significantly boost local steel production, ultimately reducing the country’s reliance on imports.
Russian envoy Deniz Zarov expressed confidence in the partnership, emphasizing the potential for expanded economic ties between the two countries. “We see strong prospects for cooperation and look forward to establishing a long-term industrial relationship with Pakistan,” he stated.
The joint steel mill is viewed as a key part of Pakistan’s broader strategy to revive large-scale industry and draw international investors into its manufacturing sector. A formal agreement is anticipated in the coming months once the technical and financial frameworks are finalized.
Pakistan Steel Mills, a once-thriving enterprise launched in 1985 with support from the former Soviet Union, may now witness a symbolic revival of its legacy through this new Pakistan-Russia partnership.
