Pakistan, Russia sign agreement to modernise Pakistan Steel Mills

Islamabad: Reaffirming their long-standing industrial partnership, Pakistan and Russia have inked a protocol to restore and modernise Pakistan Steel Mills (PSM) in Karachi,

The agreement was signed at the Pakistan Embassy in Moscow by Saif Anjum, Secretary of Industries and Production of Pakistan, and Vadim Velichko, General Director of Industrial Engineering LLC from the Russian side, in the presence of SAPM Haroon Akhtar Khan and Pakistan’s Ambassador to the Russian Federation Muhammad Khalid Jamali.

The project aims to restart and expand steel production, marking a new chapter in bilateral cooperation.

“Reviving PSM with Russia’s support reflects our shared history and commitment to a stronger industrial future,” said SAPM Khan.

According to officials, although Pakistan is rich in iron ore, with estimated reserves of 1.887 billion tons, it still imports about $2.7 billion worth of steel every year.

Officials said that domestic steel production is insufficient to meet all demand, with a supply gap of 3.1 million tons last year. Originally built with Soviet assistance in 1973, PSM remains a lasting symbol of Pakistan-Russia ties.