In a significant development aimed at boosting industrial cooperation and economic ties, Pakistan and Russia have agreed to establish a new state-of-the-art steel mill in Karachi. The agreement was finalized during high-level talks held between Russian trade officials and representatives of Pakistan’s Ministry of Industries and Production.
According to official sources, the new steel mill will be a joint venture between Pakistan Steel Mills Corporation (PSMC) and a consortium of Russian metallurgical firms. The plant is expected to have an initial production capacity of 1.5 million tons per annum, with plans to expand over the next five years.
Minister for Industries and Production, Rana Tanveer Hussain, described the project as a “milestone in Pakistan-Russia economic relations,” noting that the venture will create thousands of jobs, enhance local steel production, and reduce reliance on imports.
The Russian delegation, led by Deputy Minister of Industry and Trade Sergey Tsyb, expressed optimism about long-term industrial cooperation. “This project is a cornerstone of deeper strategic and economic collaboration between our two countries,” Tsyb said.
The steel mill will be located near the existing Pakistan Steel Mills complex in Karachi and is expected to use modern, energy-efficient technologies in line with international environmental standards.
Construction is slated to begin in early 2026, with operations projected to commence by the end of 2027.
This initiative marks a renewed effort to revitalize Pakistan’s steel sector, which has struggled in recent years due to outdated infrastructure and financial challenges. Officials say the new plant will also serve as a training hub for local engineers and technicians, with Russian experts providing technical assistance during the initial phase.
