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Pakistan, Russia Sign Landmark Agreement to Revive Karachi Steel Mills
Pakistan and Russia ink deal to revive Karachi's defunct Steel Mills, signaling renewed industrial partnership. Project to expand steel production with Russian tech support.
ND
by News Desk
2025-07-11
Pakistan, Russia Sign Landmark Agreement to Revive Karachi Steel Mills

Islamabad and Moscow signed an agreement on Friday to revive and expand operations at the Pakistan Steel Mills (PSM) in Karachi — originally built in 1973 with Soviet assistance.

The agreement marks a renewed commitment between the two nations to strengthen their long-standing industrial partnership and signals Russia’s re-engagement with Pakistan’s key infrastructure projects.

According to a press release issued by Pakistan’s Ministry of Industries and Production, the agreement was signed at the Pakistan Embassy in Moscow by Secretary Industries and Production Saif Anjum and General Director of Russia’s Industries Engineering LLC, Vadim Velichko.

Special Assistant to the Prime Minister Haroon Akhtar Khan, Pakistan’s Ambassador to Russia Muhammad Khalid Jamali, and other senior officials were also present at the signing ceremony.

“Reviving PSM with Russia’s support reflects our shared history and commitment to a stronger industrial future,” said Haroon Akhtar Khan.

A New Chapter in Bilateral Industrial Cooperation

The project aims to not only restart the long-defunct Pakistan Steel Mills but also expand its steel production capacity, which could help reduce the country’s reliance on imported steel and support Pakistan’s domestic infrastructure development.

The PSM, once a backbone of Pakistan’s heavy industry, halted its operations in 2015 after years of financial losses. Following its official closure in 2024, the Sindh government formally approached Russia for assistance in restoring the plant’s infrastructure.

This agreement is a result of discussions that began in May 2024, when both sides agreed in principle to revive the project with Russian technical and engineering support.

Strategic Partnership Broadens

The signing of the PSM revival deal comes just a day after Russian Deputy Prime Minister Alexei Overchuk called Pakistan a “natural ally” and highlighted Moscow’s intention to deepen strategic partnerships with Islamabad in the fields of energy, economy, and infrastructure.

Russia and Pakistan have been actively engaged on multiple diplomatic and economic fronts in recent months. On June 3, Russian Foreign Minister Sergey Lavrov, during a meeting with Special Assistant to the Prime Minister on Foreign Affairs Syed Tariq Fatemi, reaffirmed Russia’s desire to expand cooperation in key sectors.

The two nations are also collaborating on rail connectivity projects and are in dialogue over energy supplies and investment frameworks.

Economic Revival Through Industrial Backbone

The revival of Pakistan Steel Mills is expected to create thousands of jobs, revitalize the domestic steel market, and enhance Pakistan’s industrial self-reliance. Analysts see the agreement as part of a broader economic pivot, where Pakistan diversifies its international partnerships and attracts technical investments to rejuvenate key industries.

 
Tagged:

PakistanRussia

PSMRevival

SteelMills

KarachiIndustry
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