ISLAMABAD (PEN) : Pakistan and Russia have agreed to establish a state-of-the-art steel mill in Karachi, marking a significant step in enhancing bilateral economic ties and revitalizing Pakistan’s industrial sector.
Project Overview
The proposed steel mill will be constructed on a 700-acre plot within the Pakistan Steel Mills (PSM) complex, strategically located near Port Qasim to facilitate efficient transportation of raw materials. This initiative aims to modernize the country’s steel production capabilities and reduce reliance on imports.
Bilateral Discussions
The agreement follows a series of high-level meetings between Pakistani and Russian officials. Notably, Pakistan’s Federal Minister for Industries and Production, Rana Tanveer Hussain, and Russia’s Deputy Minister for Industry and Trade, Aleksei Gruzdev, have been instrumental in advancing the project. Both parties have committed to forming joint working groups to oversee the planning and implementation phases.
Economic Implications
Despite possessing substantial iron ore reserves, Pakistan imports approximately \$2.7 billion worth of iron and steel annually. The new steel mill is expected to bridge the gap between domestic production and demand, which stands at an estimated 3.1 million tonnes per year. Additionally, the project is poised to create employment opportunities and attract foreign direct investment, contributing to the nation’s economic growth.
Strategic Significance
This collaboration is viewed as a pivotal move in strengthening Pakistan-Russia relations and enhancing industrial cooperation. The establishment of the steel mill aligns with Pakistan’s broader objectives of industrial modernization and economic diversification.
As both nations proceed with the necessary preparations, the project is anticipated to commence in the near future, with further details to be disclosed upon finalization of agreements.
