In a significant development for Pakistan’s industrial sector, efforts to revive the Pakistan Steel Mills, which has been shut down for ten years, are gaining momentum. A technical team from Russia has submitted an initial cost estimate to the Government of Pakistan, outlining two potential paths for the plant’s revival.
According to a private TV report, the Russian experts detailed that restoring the existing mill using its current blast furnace would require an investment of approximately $1.9 billion.
Alternatively, the team proposed the option of constructing a completely new steel mill equipped with a modern Electric Arc Furnace. This option would have an initial cost of about $1 billion.
While the new mill appears cheaper upfront, the Russian team noted that the $1.9 billion for reviving the old plant would largely be a one-time investment. In contrast, the new mill would necessitate importing all equipment and scrap, which could lead to higher annual operational costs and increased reliance on imports.
Sources from the Ministry of Industries state that both proposals are currently under consideration. A key advantage of reviving the existing mill is its ability to utilize local iron ore, whereas the new mill would increase import dependency. A final decision will be made after thorough expert consultation to select the most viable option for the country.
