The government is considering a proposal to establish a new steel mill in Karachi in collaboration with Russia, as part of ongoing efforts to strengthen economic ties. Both nations have agreed to form working groups to advance the project, following discussions between Russia’s Deputy Minister of Industry and Trade, Aleksei Gruzdev, and Pakistan’s Minister for Industries, Production, and National Food Security, Rana Tanveer Hussain.
The Pakistani government has allocated 700 acres from Pakistan Steel Mills (PSM) for the new facility. Despite Pakistan’s substantial iron ore reserves of around 1,887 million tons, the country imports approximately $2.7 billion worth of iron and steel annually due to a significant gap between domestic production and demand, which stood at 3.1 million tons last year.
Minister Hussain highlighted that Pakistan’s per capita steel consumption remains lower than in many developing nations, presenting a significant growth opportunity for the sector. However, the local steel industry is fragmented into 600 small units using outdated technologies, hampering efficiency.
The new mill, located near Port Qasim, is expected to lower raw material transportation costs. A delegation of Pakistani industrial and agricultural experts is set to visit Russia to further discussions, signaling an important step in bolstering bilateral cooperation.