Karachi: The government is currently considering a proposal to establish a new steel mill in Karachi in collaboration with Russia, as reported on September 20.
As per details, this development comes as both countries agreed to form working groups to discuss the project’s details and finalise terms. In a recent meeting, Russian Deputy Minister of Industry and Trade, Alexey Gruzdev, met with Pakistan’s Minister for Industries, Production, and National Food Security, Rana Tanveer Hussain. The government has already earmarked 700 acres of Pakistan Steel Mills (PSM) land for the new steel mill. Despite Pakistan being rich in iron ore reserves—estimated at 1,887 million tons—the country continues to import approximately USD 2.7 billion worth of iron and steel each year. Rana Tanveer highlighted that the domestic steel industry’s output is insufficient to meet demand, with a gap of 3.1 million tons recorded last year.
Pakistan’s per capita steel consumption is lower than in other developing nations, indicating significant potential for growth over the coming years. However, the steel industry’s efficiency is currently limited by outdated technology and segmentation across 600 small units. The proposed site for the steel mill, strategically located near Port Qasim, would help reduce transportation costs for raw materials, providing a competitive edge.
Beyond steel, the meeting also emphasised the need for balanced trade relations between the two nations. Pakistan’s industrial and agricultural experts are set to visit Russia as part of efforts to strengthen bilateral ties. Rana Tanveer underscored the importance of modern agricultural machinery in boosting crop yields, an area where Russia has committed to supporting Pakistan.
Both nations agreed to foster cooperation in agriculture and industrial development, with the government assuring full support to Russian investors entering the country. Alexey Gruzdev reaffirmed Russia’s commitment to providing the latest agricultural technology to Pakistan. The meeting saw participation from high-ranking officials from both countries, further strengthening the foundation for increased collaboration in Pakistan’s steel and agricultural sectors
