Government is considering a proposal to establish a new steel mill in Karachi in partnership with Russia
The government is considering a proposal to establish a new steel mill in Karachi in partnership with Russia. Both countries have agreed to form working groups to push the project forward.
Recently, Russian Deputy Minister of Industry and Trade, Aleksei Gruzdev, met with Pakistan’s Minister for Industries, Production, and National Food Security, Rana Tanveer Hussain, to discuss the initiative.
Pakistan has allocated 700 acres from Pakistan Steel Mills (PSM) for the new steel plant. Despite having iron ore reserves of 1,887 million tons, the country still imports around $2.7 billion worth of iron and steel annually.
Minister Hussain emphasized the need to bridge the gap between domestic production and demand, which was around 3.1 million tons last year.
He also highlighted that Pakistan’s per capita steel consumption remains lower than in many developing countries, presenting significant growth potential.
The efficiency of Pakistan’s steel industry, however, is hampered by its fragmentation into 600 small units using outdated technologies. This new steel mill project aims to modernize the sector and boost local production.
