Islamabad: Pakistan is in negotiations with Russia to establish a modern steel mill at the site of the defunct Pakistan Steel Mills (PSM). As part of these discussions, Minister for Industries and Production Rana Tanveer Hussain is set to visit Moscow next week to further the talks.
A Russian delegation is also scheduled to arrive in Pakistan on Friday to explore trade and investment opportunities, according to Minister Hussain and Secretary Saif Anjum. The discussions aim to revive the country’s steel sector and attract foreign investment.
Built in the 1970s with Soviet assistance, PSM has remained non-operational since June 2015, becoming a major financial burden on the state. The government has decided to dismantle the existing facility and allocate 700 acres to the Sindh government for the construction of a new, state-of-the-art steel mill. The remaining land will be repurposed for an industrial park.
In addition to steel sector reforms, the government is planning major changes within the industrial sector. During a National Assembly Standing Committee meeting on Industries, Minister Hussain indicated that the financially struggling Utility Stores Corporation (USC) could either be privatized or restructured through a public-private partnership. He also stated that daily wage workers may be laid off due to financial constraints, though permanent employees would retain their jobs.
Furthermore, as part of its rightsizing policy, the government plans to shut down 20 of the 29 institutions currently operating under the Ministry of Industries and Production.
The negotiations with Russia represent a key effort to revive Pakistan’s steel industry, create jobs, and attract foreign investment to the country’s industrial sector.
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