Islamabad: The Pakistani government is looking to build a new steel mill in Karachi with help from Russia. On Wednesday, Russian Deputy Minister Aleksei Gruzdev met with Pakistan’s Minister for Industries, Rana Tanveer Hussain, to talk about the project.
Minister Hussain said that 700 acres of land from the old Pakistan Steel Mills (PSM) had been set aside for the new steel mill. This site is close to Port Qasim, which will lower transportation costs for raw materials.
Even though Pakistan has large reserves of iron ore—about 1.9 billion tonnes—the country imports around $2.7 billion worth of iron and steel each year. There is a big gap between what Pakistan produces and what it needs, estimated at 3.1 million tonnes last year. Pakistan’s steel usage per person is also low compared to other developing countries, indicating room for growth.
The steel industry faces challenges, including outdated technology and many small businesses. Additionally, Pakistani experts plan to visit Russia to strengthen ties and focus on modern agricultural equipment to improve farming. The government is ready to support Russian investors in this effort.
