Pakistan, Russia Agree to set up new steel mill in karachi

Karachi – In a major step towards strengthening bilateral relations and industrial growth, Pakistan and Russia have officially agreed to establish a new state-of-the-art steel mill in Karachi. This strategic partnership is expected to boost Pakistan’s economy, revive the steel industry, and create thousands of job opportunities for the local population.

• Russia will invest in a new steel mill in Karachi

• The facility will be built on the existing Pakistan Steel Mills (PSM) land

• Expected to generate thousands of direct and indirect jobs

• Aim to revive Pakistan's steel production and reduce dependency on imports

• Strengthens Pakistan-Russia diplomatic and economic ties

The original Pakistan Steel Mills (PSM) was established in the 1970s with assistance from the former Soviet Union. It once served as the backbone of Pakistan's industrial sector. However, due to years of neglect, financial mismanagement, and political issues, PSM eventually shut down, leaving thousands unemployed and the country reliant on imported steel.

Now, after decades, Russia has once again offered to support Pakistan in reviving its steel sector—a move widely welcomed by economists, industry experts, and the public.

According to officials, the new agreement covers:

• Full technical and financial assistance from Russia

• Construction of a modernized, eco-friendly steel mill

• Use of the latest European and Russian technologies

• Focus on energy efficiency and sustainable practices

• Transfer of skills and knowledge to Pakistani engineers and workers

Pakistan spends billions of rupees annually on importing steel from China, Turkey, and other countries. A locally-operating steel mill will:

• Significantly reduce import bills

• Strengthen Pakistan’s trade balance

• Support local manufacturing industries

Once fully operational, the new steel mill could:

• Employ over 10,000 people directly

• Create thousands of jobs indirectly in transport, logistics, and construction

• Uplift communities around Karachi and beyond

Steel is the foundation for industries like:

• Construction

• Automobiles

• Infrastructure

• Railways and bridges

This move could accelerate industrial development across the country.

This agreement is part of a larger plan between Islamabad and Moscow to deepen bilateral trade and investment. In recent years:

• Both countries have signed MOUs on energy, security, and agriculture

• Russia has shown interest in the Pakistan Stream Gas Pipeline Project

• Trade volume has gradually increased despite global tensions

Analysts believe that this steel mill deal can act as a catalyst for long-term cooperation, especially in sectors like energy, defense, and technology.

Karachi, being Pakistan’s economic hub, is the ideal location for the steel mill due to:

• Proximity to the Port for import/export

• Availability of skilled labor

• Existing infrastructure (old PSM site)

• Demand from local industries

The revival of industrial activity in Karachi is also expected to improve law and order by generating employment for the youth.

Economists and industrial experts have welcomed the deal:

“It’s a much-needed revival. A country with over 240 million people must have its own steel manufacturing to support growth,” — Dr. Asim Siddiqui, Economist

On social media, many Pakistanis expressed hope and excitement:

• Russia is again saving Pakistan Steel Mills. Welcome back, brothers.

• “Time to reduce dependency and rise again!”

If the steel mill project is successful:

• It could trigger more foreign investment

• Strengthen Pakistan’s industrial backbone

• Promote regional trade via steel exports to Afghanistan, Iran, and Central Asia

• Create a ripple effect in supporting industries

Moreover, the move shows Pakistan is opening up to multi-polar alliances and not relying on one country for support, which is a smart geopolitical shift.

The new Pakistan-Russia steel mill agreement is more than just a business deal — it's a revival of hope, industry, and partnership. For a country aiming for economic stability and self-reliance, this project can serve as a turning point.

From job creation to industrial growth and stronger diplomatic ties, the steel mill in Karachi is a win-win for both nations.

Stay tuned as this exciting development unfolds — and see how Pakistan is stepping into a new era of economic collaboration.