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Russia Backs Revival of Pakistan Steel Mills in New Agreement

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Pakistan and Russia have signed an agreement to revive and expand Pakistan Steel Mills (PSM), which has been non-operational since 2015. The deal was signed in Moscow by Pakistan’s Secretary of Industries Saif Anjum and Russia’s Industries Engineering LLC head Vadim Velichko, in the presence of PM’s Special Assistant Haroon Akhtar Khan and Ambassador Khalid Jamali.

Established 52 years ago with Russian support, PSM is the country’s largest industrial complex. The agreement includes plans to restore existing infrastructure and build new steel mills in Karachi.

The Sindh government had sought Russian assistance after PSM’s official closure in 2024. A Pakistani delegation, led by Tariq Fatemi and Haroon Akhtar Khan, held talks with Russia’s Deputy PM to advance the project, which is seen as a symbol of renewed bilateral cooperation.

Despite earlier attempts at privatization, PSM is no longer on the government’s privatization agenda for 2024–2029.

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