The government is exploring a new steel mill project in Karachi with Russian collaboration. Both nations have agreed to create working groups to advance the initiative.
On Wednesday, Russian Deputy Minister of Industry and Trade, Aleksei Gruzdev, met with Pakistan’s Minister for Industries and Production, Rana Tanveer Hussain. The Pakistani minister revealed that 700 acres of Pakistan Steel Mills (PSM) land have been allocated for the new mill.
Despite having substantial iron ore reserves, Pakistan imports about $2.7 billion worth of iron and steel annually due to a significant production-demand gap. Last year, the deficit was 3.1 million tons.
Pakistan’s per capita steel consumption is low, indicating substantial growth potential. The steel industry, fragmented into 600 small units and using outdated technology, faces efficiency challenges.
The new mill’s proposed site near Port Qasim in Karachi will lower raw material transportation costs. Pakistan plans to send industrial and agricultural experts to Russia to strengthen bilateral relations. The Pakistani government has promised support for Russian investors, while Russia will provide advanced agricultural machinery to enhance crop yields.
Present at the meeting were Russian Trade Representative Denis Nevzorov, Pakistani officials from the Ministries of Industries and Food Security, and PSM engineers.
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