Russia plans to build new steel mill in Karachi, reviving Cold War-era cooperation with Pakistan

Russia expects to finalize an agreement with Pakistan this summer to build a new steel mill in Karachi, Consul-General Andrey V. Fedorov said. The Soviet Union built the original Pakistan Steel Mills (PSM) in Karachi in the 1970s. PSM has been dormant since 2015 due to mismanagement and financial decline. The new project signifies a revival of industrial cooperation between the two countries.

Technical and diplomatic discussions are ongoing to finalize the framework for the new steel mill. Russian experts have inspected the proposed site in Karachi, and plans are underway to draft a detailed roadmap for the project. The two sides are working towards a mutually beneficial agreement for the construction of the steel mill.

Russia has previously built major industrial facilities in Pakistan, including the Guddu Power Station. The countries have expanded cooperation in various sectors, including energy. They are also progressing with the long-delayed Pakistan Stream Gas Pipeline project.

Despite challenges such as unresolved disagreements and US sanctions on Russian entities, both sides are committed to finding solutions. The envoy expressed optimism about reaching positive conclusions on both the steel mill and the pipeline.

According to the source: Arab News.