Pakistan proposes new steel mill in Karachi with Russian cooperation

Pakistan has proposed the establishment of a new steel mill on 700 acres of the existing Pakistan Steel Mill (PSM) land in Karachi.

The proposal was made by Federal Industries and Production Minister Rana Tanveer during a meeting with Russian Trade and Industry Minister Alexey Gurzdeo.

Tanveer outlined the need for Russian cooperation in capital goods and machinery, and suggested the formation of working groups focused on industrial and agricultural sectors. Despite having iron ore reserves of 1,887 million tons, Pakistan imports approximately $2.7 billion worth of iron and steel annually due to a domestic production shortfall of 3.1 million tons.

Pakistan highlighted the available infrastructure at PSM, including a gas supply of 29 MMCFD, power supply of 100 MW per month, and water supply of 23 million gallons per day.

Additionally, the PSM jetty, with a 270-meter unloading wharf and a cargo capacity of up to 55,000 tons, was emphasized as a key asset.

The proposal includes the formation of two Joint Working Groups (JWGs). The first JWG will conduct surveys and technical assessments of the existing PSM infrastructure, evaluate the use of indigenous iron ore, and develop a detailed feasibility study for the new steel mill. The second JWG will focus on cooperation in industrial plants and heavy machinery, identifying mutually beneficial areas for collaboration.

Each JWG will comprise at least one senior government official and up to three technical experts from each side, with total representation not exceeding five members. The names and credentials of representatives will be shared within 30 days.

The working groups will recommend a firm business proposal, potentially involving government-to-government (G2G), government-to-business (G2B), or business-to-business (B2B) investment models. A handout from the Ministry of Industries and Production stated that both sides are considering the proposal, with Pakistani industrial and agricultural experts set to visit Russia.

The Pakistani minister assured that Russian investors would be facilitated in Pakistan, while his Russian counterpart confirmed that Moscow would provide modern agricultural machinery to Pakistan.