Pakistan and Russia have signed a landmark agreement to revive and expand the Pakistan Steel Mills (PSM) in Karachi, a facility originally established in 1973 with Soviet assistance. The deal underscores both nations’ commitment to their “long-standing” industrial partnership.
According to a Press Information Department (PID) release, the two countries had agreed in May to work on restoring PSM, which halted operations in 2015. In 2024, after the mill’s official closure, the Sindh government sought Russian support to rehabilitate the aging infrastructure, which had suffered decades of financial losses.
The agreement was formalized at the Pakistan Embassy in Moscow, with Secretary of Industries and Production Saif Anjum and Vadim Velichko, General Director of Russia’s Industries Engineering LLC, signing on behalf of their respective governments, the Ministry of Industries and Production said in a statement.
“Restoring PSM with Russian collaboration is a reflection of our shared legacy and a step towards a stronger industrial future,” remarked Haroon Akhtar Khan, Special Assistant to the Prime Minister, who attended the signing ceremony along with Pakistan’s Ambassador to Russia, Muhammad Khalid Jamali.
The project aims not only to restart steel production but also to expand capacity, ushering in a new era of bilateral cooperation.
Just a day earlier, Russian Deputy Prime Minister Alexei Overchuk described Pakistan and Russia as “natural allies,” emphasizing Moscow’s view of Islamabad as a key partner in the economic and energy sectors.
The two countries have intensified diplomatic engagement in recent months. On June 3, Russian Foreign Minister Sergey Lavrov met Special Assistant to the Prime Minister on Foreign Affairs Syed Tariq Fatemi, reaffirming Russia’s interest in broadening collaboration with Pakistan.
Pakistan and Russia are also collaborating on several rail connectivity initiatives aimed at improving regional trade and infrastructure.
The news has been copied from the Dawn News site.
