Islamabad: The government is reviewing a proposal to construct a new steel mill in Karachi, in collaboration with Russia. The project aims to capitalize on Pakistan’s substantial iron ore reserves by reducing the need for imports and closing the gap between domestic production and demand. This initiative was discussed during a meeting between Deputy Minister of Industry and Trade of the Russian Federation, Aleksei Gruzdev, and Pakistan’s Minister for Industries, Production and National Food Security, Rana Tanveer Hussain.

According to Press Information Department, the ministers agreed to establish working groups to advance the project, highlighting a commitment to deepen bilateral ties and trade balance. The proposed facility will occupy 700 acres at the existing Pakistan Steel Mills site near Port Qasim, which offers logistical advantages for transporting raw materials. Hussain pointed out that Pakistan, despite having iron ore reserves estimated at 1887 million tons, imports about $2.7 billion worth of iron and steel annually due to a persistent production-demand gap—last year estimated at 3.1 million tons.

The current state of Pakistan’s steel industry, which comprises around 600 small units employing outdated and inefficient technology, underscores the potential benefits of the new project. Additionally, Hussain emphasized the need for modern agricultural machinery to improve crop yields and overall agricultural productivity, a need that Gruzdev confirmed Russia is ready to meet by supplying advanced equipment.

The meeting, which also saw participation from various government officials including Denis Nevzorov, the deputy trade representative of the Russian Federation in Pakistan, and several Pakistani secretaries and executives, marks a significant step in strengthening the partnership between the two countries. This collaboration is expected not only to bolster Pakistan’s industrial capacity but also to enhance its agricultural productivity through modern technology.