Russia and Pakistan are set to collaborate on a significant industrial project to revive the Pakistan Steel Mills in Karachi, a facility that has been dormant since its closure in 2015. This initiative marks a renewed effort to restore a key industrial asset originally established with Soviet support in the 1970s. The project aims to modernize and reconstruct the steel mill, positioning it as a cornerstone of Pakistan’s industrial landscape.
The agreement involves establishing a joint working group to oversee the development of a state-of-the-art steel mill. Posts on X indicate that Russia’s Deputy Minister of Industry and Trade, Aleksei Gruzdev, has pledged full support for the initiative, highlighting its potential to strengthen bilateral ties. The revamped facility is expected to span 17,000 acres and incorporate advanced technology to boost steel production, addressing Pakistan’s growing demand for industrial materials.
This collaboration reflects a strategic partnership aimed at enhancing economic cooperation. The project is poised to create jobs, stimulate local industries, and reduce Pakistan’s reliance on imported steel. Historical ties between the two nations, rooted in the Soviet-era establishment of the original mill, add a layer of significance to this renewed effort. The initiative also aligns with Pakistan’s broader goals of industrial modernization and economic self-sufficiency.
As details emerge, the project is generating optimism about its potential to revitalize Karachi’s industrial sector and foster long-term economic benefits. Stakeholders are closely monitoring progress, with expectations that the joint working group will outline a clear timeline and investment framework soon.
Published in SouthAsianDesk, July 12th, 2025
Follow SouthAsianDesk on X, Instagram and Facebook for insights on business and current affairs from across South Asia.
