Pakistan and Russia have officially signed a new agreement to advance the Pakistan Steel Mills Revival, aiming to restore and upgrade the Karachi-based facility that was originally built in 1973 with Soviet assistance. The deal was signed at the Pakistan Embassy in Moscow during the INNOPROM industrial expo by Saif Anjum, Secretary of Industries and Production, and Vadim Velichko, General Director of Russia’s Industrial Engineering LLC.
The Pakistan Steel Mills Revival project is designed to restart production at the defunct plant, which has been non-operational since 2015, and expand its capacity to reduce the country’s reliance on imported steel. Pakistan currently imports over $2.7 billion worth of steel annually, despite having nearly 1.9 billion tons of iron ore reserves, most of which remain untapped. Industry analysts believe that reviving PSM could significantly reduce this trade gap, generate thousands of jobs, and improve domestic industrial output.
Officials present at the signing — including Pakistan’s Special Assistant to the Prime Minister Haroon Akhtar Khan and Ambassador to Russia Khalid Jamali — framed the move as a deepening of the two countries’ long-standing industrial partnership. The project also aligns with broader economic cooperation plans, such as the expected launch of a pilot cargo train between Pakistan and Russia in August 2025.
Russian Deputy Prime Minister Alexei Overchuk recently referred to Pakistan as a “natural ally,” signaling Moscow’s broader strategic interest in economic, industrial, and energy cooperation with Islamabad. Posts on X from trade observers suggest cautious optimism, with hopes that the Pakistan Steel Mills Revival can help strengthen Pakistan’s manufacturing sector — if the political will and funding commitments hold steady.
Published in SouthAsianDesk, July 11th, 2025
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