Pakistan and Russia Explore New Steel Mill Project in Karachi

The government is evaluating a proposal to establish a new steel mill in Karachi with the collaboration of Russia. Both nations have agreed to form working groups to discuss the project’s specifics, according to a statement released on Wednesday.

Russian Deputy Minister of Industry and Trade, Alexey Gruzdev, met with Pakistan’s Minister for Industries, Production, and National Food Security, Rana Tanveer Hussain, to review the initiative. The Pakistani government has allocated 700 acres of land from the Pakistan Steel Mills (PSM) for the new venture.

Minister Hussain highlighted that Pakistan, despite having substantial iron ore reserves estimated at 1.887 billion tons, spends approximately $2.7 billion annually on importing iron and steel. He pointed out a persistent gap between domestic production and demand, which stood at 3.1 million tons last year.

Hussain noted that Pakistan’s per capita steel consumption is lower than that of many developing countries, underscoring the potential for growth. He also mentioned that the current steel industry, comprising around 600 small units, relies on outdated technology, limiting efficiency.

The proposed steel mill site near Karachi and Port Qasim is expected to reduce raw material transportation costs. As part of the broader cooperation, Pakistani industrial and agricultural experts will visit Russia to further strengthen bilateral relations.

In addition to the steel mill discussion, the meeting addressed the need for modern agricultural machinery. Gruzdev assured that Russia would provide advanced agricultural technology to support Pakistan’s agricultural sector.

The meeting was attended by several officials, including the deputy trade representative of the Russian Federation in Pakistan, Denis Nevzorov, and various secretaries and additional secretaries from Pakistan’s relevant ministries.