Pakistan and Russia Sign Agreement to Revive Karachi’s Steel Mills
Pakistan and Russia have officially signed an agreement to revive and expand the Pakistan Steel Mills (PSM) project in Karachi, a historic industrial facility originally established in 1973 with Soviet support.
The signing ceremony took place at the Pakistan Embassy in Moscow, where Secretary for Industries and Production Saif Anjum and Vadim Velichko, General Director of Russia’s Industries Engineering LLC, finalized the deal. The agreement follows months of discussions, including a mutual understanding reached in May 2025 to breathe new life into the now-defunct facility.
PSM, once a cornerstone of Pakistan’s industrial landscape, halted operations in 2015 after years of mounting financial losses. In 2024, the Sindh government sought assistance from Russia to help restore the aging infrastructure and reignite the plant’s steel production capabilities.
“Reviving PSM with Russia’s support reflects our shared history and commitment to a stronger industrial future,” said Special Assistant to the Prime Minister Haroon Akhtar Khan, who attended the event along with Pakistan’s Ambassador to Russia, Muhammad Khalid Jamali.
According to a statement from the Ministry of Industries and Production, the renewed collaboration aims not only to restart production but also to modernize and expand the facility. This marks a fresh chapter in the long-standing industrial partnership between the two nations.
Just a day earlier, Russian Deputy Prime Minister Alexei Overchuk described Pakistan and Russia as “natural allies,” emphasizing Moscow’s strategic interest in deepening economic and energy ties with Islamabad.
The steel revival project is part of a broader effort to strengthen bilateral cooperation. Both countries are also working together on several rail connectivity and infrastructure projects, and Russian Foreign Minister Sergey Lavrov recently reaffirmed his government’s commitment to expanding ties during a meeting with Pakistan’s leadership.
This partnership is expected to support Pakistan’s industrial growth while fostering long-term economic collaboration between the two nations.
