The government is exploring a proposal to establish a new steel mill in Karachi in collaboration with Russia, with both nations agreeing to form working groups to advance the project.

Recently, Russian Deputy Minister of Industry and Trade, Aleksei Gruzdev, met with Pakistan’s Minister for Industries, Production, and National Food Security, Rana Tanveer Hussain.

During the meeting, the Pakistani minister announced that the government had designated 700 acres of land from Pakistan Steel Mills (PSM) for the new mill.

Despite having significant iron ore reserves estimated at 1,887 million tons, Pakistan currently imports around $2.7 billion worth of iron and steel.

The minister pointed out that there is a persistent gap between domestic production and demand, which was about 3.1 million tons last year.

He noted that Pakistan’s per capita steel consumption is lower than that of many developing countries, indicating substantial growth potential in the medium to long term.

Hussain also mentioned that the efficiency of Pakistan’s steel industry is hindered by its fragmentation into 600 small units that use outdated and inefficient technologies.

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The proposed steel mill site in Karachi, near Port Qasim, will help reduce transportation costs for raw materials. Pakistani industrial and agricultural experts are planning a visit to Russia, marking an important step in enhancing bilateral relations.

During their discussions, they highlighted the importance of balancing trade between the two countries.

Hussain urged the adoption of modern agricultural machinery to improve crop yields and overall farm productivity.

Gruzdev emphasized Russia’s commitment to supplying modern agricultural machinery to Pakistan to boost agricultural output.

Present at the meeting were with the Russian Trade Representative in Pakistan, Denis Nevzorov, along with various officials from Pakistan’s Industries and Production and National Food Security departments.