Russia has officially confirmed the plans for establishing a new steel mill in Karachi.
According to Russian Consul-General Andrey V. Fedorov, Moscow is expected to finalize an agreement with Pakistan this summer to build a new steel mill in Karachi.
“Our technical experts have already examined the facility, and another team may soon arrive to complete the preparations. Some proposals are on the table from both the Russian and Pakistani sides. We’re ready to develop a roadmap for the construction of a new steel mill in Karachi,” Fedorov told the media.
This marks the first official confirmation from a Russian representative regarding the long-discussed project.
The initiative would revive Cold War-era industrial ties between the two nations as Islamabad seeks new foreign investment and aims to strengthen its relationship with Moscow.
The Soviet Union originally built the Pakistan Steel Mills (PSM) in the 1970s, once considered a flagship symbol of the country’s industrial self-reliance. However, the facility has been inactive since 2015 due to chronic mismanagement, political interference, and mounting financial losses.
By the end of the 2024 fiscal year, PSM had accumulated losses of Rs255.8 billion (approx. $902 million) and liabilities of Rs359.9 billion ($1.27 billion), while still employing over 3,500 workers despite being non-operational.
Now, Pakistani and Russian officials are engaged in advanced technical and diplomatic negotiations to lay the groundwork for a modern steel production facility. Russian experts have already inspected the proposed site in Karachi, with another delegation expected soon to finalize the technical roadmap.
