The Pakistani government is exploring a proposal to establish a new steel mill in Karachi in cooperation with Russia, following an agreement to form working groups to advance the project.
During a meeting with Aleksei Gruzdev, Deputy Minister of Industry and Trade of the Russian Federation, Pakistan’s Minister for Industries, Production, and National Food Security, Rana Tanveer Hussain, revealed that 700 acres of the defunct Pakistan Steel Mills (PSM) have been earmarked for the new facility. The site’s proximity to Port Qasim would reduce transportation costs for raw materials.
Despite Pakistan’s significant iron ore reserves of 1,887 mln tons, the country imports around USD 2.7 bln worth of iron and steel annually, with a production-demand gap of 3.1 mln tons last year.
Tanveer noted that Pakistan’s per capita steel consumption lags behind even developing countries, signaling strong growth potential. However, the efficiency of the steel industry remains limited due to its fragmentation into 600 small units using outdated technology.
