+Pakistan, Russia Ink Landmark Deal to Revive Pakistan Steel MillsIslamabad

/Moscow, July 12, 2025 — In a significant step toward revitalizing Pakistan’s industrial backbone, Pakistan and Russia have signed a formal agreement to restore and modernize the long-dormant Pakistan Steel Mills (PSM), reaffirming decades-old bilateral cooperation.
The signing ceremony took place at the Pakistan Embassy in Moscow, where Secretary of Industries and Production Saif Anjum and Vadim Velichko, General Director of Russia’s Industrial Engineering LLC, formalized the pact. The event was witnessed by Special Assistant to the Prime Minister Haroon Akhtar Khan and Pakistan’s Ambassador to Russia, Muhammad Khalid Jamali.
Built in 1971 with Soviet support, PSM has remained idle since 2015, burdened by years of financial losses and infrastructural decay. The new agreement aims to restart and expand steel production, with Russia providing technical expertise and engineering support to overhaul the facility.
“Reviving PSM with Russia’s support reflects our shared history and commitment to a stronger industrial future,” said Haroon Akhtar Khan during the ceremony.
The deal also includes plans to establish a new state-of-the-art steel mill in Karachi, with 700 acres allocated by the Sindh government for the project. Additional land will be used to develop an industrial park, signaling a broader push toward industrial modernization.
The revival of PSM is expected to generate thousands of jobs, strengthen domestic steel production, and reduce reliance on imports. Russia’s Industrial Engineering LLC will lead the technical assessment and implementation phase, with a focus on restoring core production units and training a skilled workforce to meet international standards.
This agreement marks a renewed chapter in Pakistan-Russia industrial relations, positioning both nations as strategic partners in economic development and energy cooperation.