Pakistan and Russia discuss establishment of a new steel mill in Karachi
Formation of a joint working group agreed to boost industrial investments
Pakistan and Russia have agreed to form a joint working group to explore the establishment of a new steel mill in Karachi, officials said.
Prime Minister’s Special Assistant Haroon Akhtar Khan met with Russian representative Denis Nazrov to discuss investment opportunities and industrial collaboration. The talks focused on strengthening business ties and fostering economic cooperation between the two countries.
“This is the best time for investment in Pakistan,” Khan said, highlighting the government’s vision of promoting foreign investment. “Pakistan is globally recognized as a strong and secure country for investment.”
The joint working group aims to identify pathways for reviving industrial cooperation between Pakistan and Russia and ensuring long-term sustainability in steel production.
It may be mentioned here Pakistan Steel Mills, built with Soviet assistance in the 1970s, remains the country's largest industrial complex with a production capacity of 1.1–5.0 million tonnes.
However, its backup steel mill has been closed for nearly a decade. In July 2023, the government announced its decision to shut down Pakistan Steel Mills permanently due to heavy financial losses and the absence of a buyer.
Pakistan’s steel consumption has declined over the past five years, and a Pakistan Credit Rating Agency (PACRA) study found that the country’s per capita consumption remains significantly below the global average.
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