The ambitious project emerged from a high-level follow-up meeting between SAPM Haroon Akhtar Khan and a Russian delegation led by Denis Nazaroof, where both sides pledged to move forward on this critical infrastructure venture.
What makes this deal even more significant is the fact that Pakistan currently imports nearly Rs757,000,000,000 worth of iron and steel every year, despite having 1.887 billion tons of iron ore reserves. With a domestic production gap of 3.1 million tons, the country desperately needs industrial self-reliance — and this partnership might just be the answer.
During the meeting, Russia reaffirmed its commitment to building the mill and invited Pakistan to an upcoming industrial exhibition in Moscow. The Russian team also reminded Pakistani officials of a key meeting in September 2024, where Russia’s Deputy Minister for Industry Aleksei Gruzdev and Pakistan’s former minister Rana Tanveer Hussain laid the groundwork for this initiative by agreeing to form a working group — a plan that is now becoming reality.
According to Haroon Akhtar Khan, this project is aligned with the prime minister’s vision to attract foreign investment, positioning Pakistan as a ‘secure and thriving hub’ for international businesses. He stressed that now is the best time for foreign investors to enter Pakistan, especially in sectors like steel that offer high growth potential.
To facilitate the project, Pakistan has already earmarked 700 acres of land within the premises of Pakistan Steel Mills near Port Qasim, which will significantly cut down the cost of transporting raw materials. The location also enhances the project’s logistics advantage, making it more attractive to global investors.
Khan invited Russian industrialists to explore opportunities in Pakistan, stating that joint ventures in steel, agriculture, and other key sectors will not only boost economic activity but also cement long-term bilateral ties.
Experts say Pakistan’s per capita steel consumption remains far below global averages, especially compared to other developing nations. The current domestic steel industry, made up of over 600 small units, suffers from outdated technology and inefficiency — making the new Karachi steel mill a potential game-changer.
In another promising sign of growing cooperation, Pakistani industrial and agricultural experts are preparing to visit Russia, setting the stage for broader collaboration in multiple sectors.
