Russia and Pakistan have agreed to build a new steel mills in Karachi. The decision was made during a meeting in Islamabad between Haroon Akhtar Khan, the Special Assistant to the Prime Minister on Industries and Production, and a Russian delegation led by Denis Nazarov.
The Russian side confirmed their commitment to the project and also invited Pakistan to take part in an upcoming industry exhibition in Moscow. The two countries had earlier discussed this plan in September 2024 during a meeting between Russia’s Deputy Minister for Industry and Trade Aleksei Gruzdev and Pakistan’s former Industries Minister Rana Tanveer Hussain. At that time, both sides agreed to set up a working group to move the project forward.
During the recent meeting, both countries talked in detail about setting up the new steel mill. They agreed to form a joint working group to develop and implement the project. Haroon Akhtar Khan said the prime minister is focused on bringing more investment to Pakistan and described the country as a strong and safe place for international investors.
He invited Russian companies to explore business opportunities in Pakistan and said that this steel mill project could be very beneficial for both nations.
Pakistan has set aside 700 acres of land at Pakistan Steel Mills (PSM) in Karachi for the new plant. Even though Pakistan has large iron ore reserves (about 1.887 billion tons), the country still imports about $2.7 billion worth of iron and steel every year. The local steel industry cannot meet the country’s demand, with a supply gap of around 3.1 million tons last year.
