Pakistan, Russia Sign Protocol to Revive Steel Mills

Pakistan and Russia have signed the second protocol under the Inter-Government Commission to advance the revival of Pakistan Steel Mills. Officials confirmed that a bankable feasibility study and EPC framework will be prepared, with Russia offering two technical options. The government plans to privatize the mill, inviting local and international investors to participate.

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Pakistan and Russia have agreed to move forward on reviving Pakistan Steel Mills (PSM) by signing the second protocol under the Pakistan-Russia Inter-Government Commission (IGC). The decision was taken during the 10th IGC meeting in late November, attended by senior officials from both governments.

Officials said a bankable feasibility study will be prepared, paving the way for an Engineering, Procurement, and Construction (EPC) framework. The government has decided not to operate PSM directly and will proceed with its privatization, with expressions of interest expected once feasibility work is complete.

At Pakistan’s request, Russia presented two revival options: a blast furnace model costing $1.91 billion, and a new Electric Arc Furnace (EAF) facility estimated at $1.05 billion. Despite Pakistan’s iron ore reserves of nearly 1.9 billion tonnes, the country imports $6 billion worth of steel annually, leaving a supply gap of 3.1 million tonnes.

Separately, the Ministry of Industries is working with Maritime Affairs on a Port Qasim-based plan to convert PSM into a ship recycling and repair complex. Officials estimate the project could cut steel imports by 20 percent, saving $13 billion over the next decade.