The Pakistani government is considering a proposal to establish a new steel mill in Karachi with the cooperation of Russia. Both countries have agreed to form working groups to advance the project. This development was discussed during a meeting between Aleksei Gruzdev, Deputy Minister of Industry and Trade of the Russian Federation, and Rana Tanveer Hussain, Pakistan’s Minister for Industries, Production, and National Food Security, on Wednesday.

The minister revealed that the government has allocated 700 acres of land from the Pakistan Steel Mills for the new steel mill project. Despite having substantial iron ore reserves estimated at 1,887 million tons, Pakistan imports approximately $2.7 billion worth of iron and steel annually. The domestic production and demand gap for iron and steel was estimated at 3.1 million tons last year.

Pakistan’s per capita steel consumption is lower than that of many developing countries, indicating significant growth potential in the medium to long term. The efficiency of the country’s steel industry is limited due to its segmentation into 600 small units and reliance on outdated technology.

The proposed site for the new steel mill is strategically located near Port Qasim in Karachi, which will help reduce transportation costs for raw materials.

In a move to strengthen bilateral ties, Pakistan’s industrial and agricultural experts are set to visit Russia. During the meeting, both sides emphasized the importance of balancing trade between the two countries. Rana Tanveer highlighted the need for modern agricultural machinery to boost crop yields and enhance productivity, assuring that the government will provide all necessary facilities to Russian investors.

Aleksei Gruzdev confirmed that Russia will supply modern agricultural machinery to Pakistan to support agricultural productivity across the country.

The meeting was attended by Denis Nevzorov, Deputy Trade Representative of the Russian Federation in Pakistan, Saif Anjum, Secretary for Industries and Production, Ali Tahir, Secretary for National Food Security and Research, Amir Mohyudin, Additional Secretary for National Food Security, Abdul Samad, Deputy Chief of Industries and Production, and Engr. Muhammad Shoaib, Executive Engineer at Pakistan Steel Mills.