In a significant development aimed at bolstering Pakistan’s industrial capacity, the government is considering a proposal to establish a new steel mill in Karachi in collaboration with Russia. Both nations have agreed to form working groups to advance the project, signaling a strong step towards enhanced industrial cooperation.
Deputy Minister of Industry and Trade of the Russian Federation, Aleksei Gruzdev, met with Pakistan’s Minister for Industries, Production, and National Food Security, Rana Tanveer Hussain, to discuss the initiative. During the meeting, the ministers highlighted the potential of the proposed steel mill, which is to be built on 700 acres of land earmarked by the government from the Pakistan Steel Mills.
Despite being rich in natural resources, with an estimated 1.887 billion tons of iron ore reserves, Pakistan currently imports around $2.7 billion worth of iron and steel annually. The domestic production of steel is insufficient to meet the nation’s demand, with a supply gap of around 3.1 million tonnes last year alone. This new steel mill aims to bridge that gap and reduce reliance on imports.
Rana Tanveer Hussain pointed out that Pakistan’s per capita steel consumption is lower than that of many developing countries, indicating significant growth potential in the sector. The country’s steel industry is currently segmented, comprising approximately 600 small units that operate with outdated, inefficient technology. The proposed collaboration with Russia promises to modernise Pakistan’s steel production capabilities and improve industrial efficiency.
Strategically located near Port Qasim, the proposed site in Karachi will benefit from reduced transportation costs for raw materials, further enhancing the economic viability of the project.
In addition to industrial cooperation, Pakistan and Russia also discussed strengthening ties in agriculture. Pakistani industrial and agricultural experts are scheduled to visit Russia, emphasising the importance of balanced trade between the two countries. During the meeting, Rana Tanveer underscored the need for modern agricultural machinery to boost crop yields and improve productivity across the country. Aleksei Gruzdev confirmed Russia’s commitment to providing Pakistan with advanced agricultural equipment to enhance agricultural output.
The meeting was attended by several high-ranking officials, including the Deputy Trade Representative of the Russian Federation in Pakistan, Denis Nevzorov, and key Pakistani representatives from industries and production, national food security, and Pakistan Steel Mills.
This joint venture between Pakistan and Russia not only signals a step towards self-sufficiency in steel production but also marks a new chapter in the countries’ bilateral relations, with a focus on both industrial and agricultural development.