ISLAMABAD: The Pakistani government is exploring the establishment of a new steel mill in Karachi with Russian cooperation. Both nations have agreed to form working groups to advance the project.
Russian Federation Deputy Minister of Industry and Trade, Aleksei Gruzdev, met with Pakistan’s Minister for Industries, Production, and National Food Security, Rana Tanveer Hussain, on Wednesday. During their discussion, Hussain revealed that the Pakistani government has allocated 700 acres of land from Pakistan Steel Mills (PSM) for the proposed steel mill.
Despite having significant iron ore reserves estimated at 1,887 million tons, Pakistan currently imports around $2.7 billion worth of iron and steel annually due to a persistent production-demand gap. Last year, this gap was around 3.1 million tons.
Hussain noted that Pakistan’s per capita steel consumption is lower than that of other developing countries, highlighting considerable growth potential. He also pointed out that the steel industry is fragmented, with 600 small units relying on outdated technology.
The planned steel mill will be situated in Karachi, near Port Qasim, which is expected to lower raw material transportation costs.
Industrial and agricultural experts from Pakistan are scheduled to visit Russia as part of strengthening bilateral relations. The meeting also addressed the need for balanced trade and the introduction of modern agricultural machinery to boost Pakistan’s crop yields and farm production.
Hussain assured that the Pakistani government would facilitate Russian investors, while Gruzdev committed to providing advanced agricultural machinery to support Pakistan’s agricultural sector.
Attendees included Russian Deputy Trade Representative in Pakistan, Denis Nevzorov, and several Pakistani officials, including Industries and Production Secretary Saif Anjum and National Food Security Secretary Ali Tahir.
