Pakistan and Russia have signed a key agreement to restore and modernize Pakistan Steel Mills (PSM) in Karachi. The signing took place at the Pakistan Embassy in Moscow between Saif Anjum, Pakistan’s Secretary of Industries and Production, and Vadim Velichko, General Director of Russia’s Industrial Engineering LLC. The agreement marks a renewed industrial partnership between the two countries.
The project will revive steel production at PSM, once considered the backbone of Pakistan’s industrial capacity. Special Assistant to the Prime Minister Haroon Akhtar Khan said this collaboration reflects the historical bond between Pakistan and Russia. He emphasized that restoring PSM will strengthen Pakistan’s industrial future and reduce its reliance on steel imports.
Khan previously stated that technical assessments are underway. If even 50% of PSM’s current machinery is found usable, full restoration will proceed with Russian support. He also noted that a new steel plant may be built on 710 acres of the 18,660-acre site. This would significantly boost production and employment.
Despite having iron ore reserves estimated at 1.887 billion tons, Pakistan imports around $2.7 billion worth of steel annually. The country currently faces a 3.1 million-ton supply gap in steel. Reviving PSM could reduce this dependency and help stabilize the trade deficit.
Built with Soviet help in 1973, Pakistan Steel Mills remains a symbol of Pakistan-Russia cooperation. The new deal breathes life into that legacy, signaling closer ties and a shared industrial future.