Pakistan and Russia are moving forward with plans to develop a cutting-edge steel manufacturing plant in Karachi.
Officials confirmed on Tuesday that a joint working group will be set up soon to manage the planning and execution of the project. The proposed facility will be constructed on a 700-acre portion of the existing Pakistan Steel Mills (PSM) property.
This progress follows a high-level meeting between Haroon Akhtar Khan, Special Assistant to the Prime Minister on Investment, and Deniz Zarov, the Russian trade envoy. Discussions during the meeting centred on the steel mill initiative and other potential commercial partnerships.
Following the meeting, Mr. Khan told reporters that this venture would play a pivotal role in reviving Pakistan’s industrial sector and attracting greater levels of foreign direct investment (FDI).
“Prime Minister Shehbaz Sharif is focused on boosting investment and upgrading our industrial infrastructure,” he said. “Pakistan offers a secure and promising environment for international investors.”
The steel plant will be part of the broader effort to rehabilitate the dormant Pakistan Steel Mills, which halted production in 2015 due to ongoing financial and administrative challenges. Authorities have allocated part of PSM’s 19,000-acre landholding for this joint initiative.
Mr. Khan noted that working with Russia would not only bring in modern technologies but also boost local steel production, helping to cut down on steel imports.
Russian representative Deniz Zarov expressed strong support for the collaboration and emphasized the potential for expanding economic ties. “There’s substantial room for cooperation, and we’re enthusiastic about forming a long-term industrial partnership with Pakistan,” he said.
As per media reports a formal agreement is expected in the coming months, pending the completion of technical and financial planning by the working group.
