Pakistan has announced negotiations with Russia to construct a modern steel plant at the site of the long-dormant Pakistan Steel Mills (PSM). Minister for Industries and Production, Rana Tanveer Hussain, is set to visit Moscow in the coming days to advance discussions, while a Russian delegation is also scheduled to visit Pakistan to explore investment and cooperation opportunities. The government plans to dismantle the old facility, allocating 700 acres to the Sindh administration for the construction of the new steel plant, with the remaining land designated for an industrial park.
Last month, Russian technical experts conducted an on-site assessment of PSM to evaluate modernization options. As part of its broader economic reforms under the IMF program, Pakistan aims to privatize loss-making state enterprises. PSM, which has been inactive since 2015 and has accumulated losses exceeding $800 million, remains a priority in this restructuring process. The Pakistani government sees Russia’s technical and financial support as a key opportunity to revitalize its steel sector.
In recent years, the two nations have strengthened economic ties through various energy and infrastructure projects. Pakistan has increased imports of Russian crude oil and liquefied petroleum gas (LPG) to stabilize its foreign reserves. Meanwhile, Russia plans to invest in projects such as the Pakistan Stream gas pipeline and the modernization of the Quetta-Taftan railway line. These developments signal a deepening economic partnership between the two countries.
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