Pakistan and Russia on Friday signed an agreement to revive and expand the Pakistan Steel Mills (PSM), which ceased operations in 2015 after decades of losses.
The Pakistan Steel Mills was originally built with Soviet assistance in 1973.
Industries and Production Secretary Saif Anjum signed the agreement on Pakistan’s behalf at the Pakistan Embassy in Moscow. Industries Engineering LLC of Russia General Director Vadim Velichko represented Russia.
Special Assistant to the Prime Minister (SAPM) Haroon Akhtar Khan witnessed the signing of the agreement signing along with Pakistan’s Ambassador to the Russian Federation Muhammad Khalid Jamali.
According to a statement, Khan said reviving the Pakistan Steel Mills with the support of Russia reflected “our shared history and commitment to a stronger industrial future.” He said the deal marked a new chapter in bilateral cooperation.
Earlier in the week, a high-powered Pakistani delegation led by SAPM on Foreign Affairs Tariq Fatemi and Khan held a meeting with Russia’s Deputy Prime Minister Alexei Overchuk in Moscow. During their talks, Khan informed Russia that Pakistan’s government attached high importance to ongoing discussions on the new Steel Mills in Karachi, noting the project represented the legacy of cooperation between Pakistan and Russia.
The PSM had a cumulative profit of Rs. 9.54 billion up to FY2007-08. However, the next 10 years saw its losses swell, reaching Rs. 200 billion by May 31, 2018.