Russia to collaborate with Pakistan on modernization of steel mill — state media

Labourers work on molten steel rods at a mill in Islamabad on April 30, 2024. (AFP/File)
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Updated 12 February 2025
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Russia to collaborate with Pakistan on modernization of steel mill — state media

  • A team of technical experts from Russia was in Pakistan last month to evaluate Pakistan Steel Mills
  • PSM among dozens of loss-making public entities Pakistan wants to sell as part of IMF reforms program 

ISLAMABAD: Russian Ambassador to Pakistan Albert P. Khorev has announced cooperation with Islamabad this year in the energy and industrial sectors, including the modernization of a state-owned steel mill, Pakistani state media reported on Wednesday.

A team of technical experts from Russia was in Pakistan last month to assess Pakistan Steel Mills (PSM), one of several firms Pakistan wants to sell to revive loss-making entities as it strives to deliver reforms under a $7 billion International Monetary Fund bailout.

Islamabad has for years been pumping billions of dollars into cash-bleeding state enterprises to keep them afloat, including one of the largest loss-making enterprises, Pakistan International Airline, and PSM, once the producer of almost half the country’s steel needs but which has been in decline since 2008 due to corruption, mismanagement, and a lack of investment. 

As of August 2024, the accumulated losses of the mills stood at over $800 million. PSM has not produced steel at its 19,000-acre facility since June 2015.

“Ambassador Khorev has said that Russia and Pakistan will focus on cooperation in energy and industry including the modernization of the Steel Mills, agriculture and transport in 2025,” state news agency, the Associated Press of Pakistan (APP), said. 

Pakistan and Russia, once Cold War rivals, have strengthened their relationship in recent years through increased dialogue and trade, including in 2023 when Pakistan began purchasing discounted Russian crude oil that had been banned from European markets due to Russia’s war on Ukraine. Islamabad also received its first shipment of liquified petroleum gas from Russia that year. 

It is targeting 100,000 bpd of imports from Russia, compared with the total 154,000 bpd of crude it imported in 2022, in the hopes that will lower its import bill, address a foreign exchange crisis and keep a lid on inflation.

However, the benefits are being offset by increased shipping costs and lower quality refined products compared with the fuels produced with crude from Pakistan’s main suppliers, Saudi Arabia and the United Arab Emirates.

Energy imports make up the majority of the South Asian country’s external payments.

“Russia stands ready to intensify cooperation with Pakistan on the use of international transport corridors,” APP quoted the Russian ambassador as saying. 

These include the Pakistan Stream gas project, also known as the North-South gas pipeline, which is to be built in collaboration with Russian companies. The 1,100 km (683 mile)-long pipeline will deliver imported LNG from Karachi on the Arabian Sea coast to power plants in the northeastern province of Punjab. Another corridor is the Trans-Afghan Multimodal Transport Corridor, which will run from northeastern Kazakhstan via Uzbekistan, Afghanistan, and Pakistan, and onward by sea to the port of Jebel Ali in the United Arab Emirates.

The statement also quoted Khorev as saying Russia was considering being involved in the modernization of the Quetta-Taftan railway line, one of the main railway lines in Pakistan. and increasing maritime cargo transportation.


Pakistan’s latest airstrikes on militant targets inside Afghanistan risk further escalation — analysts

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Pakistan’s latest airstrikes on militant targets inside Afghanistan risk further escalation — analysts

  • The strikes followed a series of suicide attacks in Pakistan, amid a surge in militancy in its western regions bordering Afghanistan
  • With negotiations stalled, analysts say military signalling may deliver short-term deterrence but would do little to address mistrust

ISLAMABAD: Continued military action by Pakistan and Afghanistan against each other risks entrenching a “cycle of retaliation” rather than curbing militancy, analysts warned on Sunday, following Pakistan’s latest cross-border airstrikes in Afghanistan.

Pakistan’s information ministry said the overnight strikes involved “intelligence-based selective targeting of seven terrorist camps” and described them as a retributive response to recent militant attacks inside Pakistan.

While a Pakistani security official said the airstrikes killed more than 80 militants, Afghan government spokesperson Zabihullah Mujahid said the incursions killed and injured “dozens of people, including women and children.”

The exchange marks a further deterioration in ties that have frayed since the Taliban returned to power in Kabul in 2021. Diplomatic efforts to ease tensions, including mediation attempts involving Qatar, Turkiye and other countries, have failed to yield results.

Abdul Sayed, an independent researcher on security and foreign affairs in the Afghanistan-Pakistan region, said Islamabad could conduct more strikes if militant attacks continued inside Pakistan.

“In the context of Pakistan’s prevailing policy of prioritizing military force over negotiations, it appears that the continuation of such aerial strikes in Afghanistan is likely, particularly as militant attacks are escalating rather than declining,” he told Arab News.

Pakistani authorities have not publicly endorsed such a policy, while its information ministry said Islamabad conducted the strikes in response to recent attacks, particularly by the Tehreek-e-Taliban Pakistan (TTP), inside Pakistan.

Pakistan says militant violence has surged since the return of the Afghan Taliban to power and accuses the Afghan authorities of failing to act against the TTP, also known as the Pakistani Taliban, which it says operates from Afghan sanctuaries. The Taliban deny allowing Afghan soil to be used for attacks against any country.

Asif Durrani, a former Pakistani special representative to Afghanistan, said the latest operation had been anticipated for weeks.

“The current Taliban regime is not serious about controlling the TTP or its leadership,” he said. “The regime is in a denial mode about the TTP activities inside Pakistan and is behaving as a militia organization. This is not responsible governance.”

He said the strikes had conveyed a “calibrated but unmistakable message” that cross-border sanctuaries would no longer be accepted.

Hours before the Saturday’s airstrikes, a suicide bomber targeted a security convoy in the border district of Bannu in Pakistan’s northwest, killing two soldiers, including a lieutenant colonel. Another suicide bomber, backed by gunmen, rammed an explosives-laden vehicle last week into the wall of a security post in Bajaur district, which borders Afghanistan, killing 11 soldiers and a child. Pakistani authorities later said the attacker was an Afghan national.

Information Minister Attaullah Tarar said Pakistan had “conclusive evidence” that the recent attacks, including a suicide bombing that targeted a Shiite mosque in Islamabad and killed 32 worshippers this month, were carried out by militants acting on the “behest of their Afghanistan-based leadership and handlers.”

While Pakistan’s military has conducted such cross-border operations in the past as well, analysts say the recurrence of such airstrikes risks normalizing a tactic that could further inflame anti-Pakistan sentiment in Afghanistan.

“Unless there is a substantive shift, either in Pakistan’s demand for concrete action or in Kabul’s approach toward the alleged presence of militants, such incidents risk becoming a recurring feature of the bilateral relationship,” Tameem Bahiss, a Kabul-based analyst, told Arab News, describing the current trajectory of bilateral ties as “deeply concerning”.

“From Pakistan’s perspective, the frustration is understandable given the rise in militant violence inside its territory,” he said. “However, aerial strikes inside Afghanistan risk widening the diplomatic divide and fueling anti Pakistan sentiment within Afghanistan. That in turn could make it even more politically difficult for Kabul to take visible or forceful action against groups that Pakistan accuses of operating there.”

The Taliban’s Ministry of National Defense has warned of an “appropriate and measured response” to what it called a violation of Afghan sovereignty, raising concerns about a potential retaliation to Pakistani airstrikes.

Based on trends since 2022, Sayed said, Pakistan’s aerial operations may have carried domestic political utility but produced “net strategic losses”.

“These operations are, in the long term, undermining Pakistan’s own objectives, serving not to diminish the threat of militancy but to further reinforce it,” he said, arguing that they have bolstered popular support for the Afghan Taliban while militant attacks inside Pakistan have continued to rise.

The core dispute centers on Islamabad’s insistence that Kabul honor commitments under the 2020 Doha Agreement to prevent Afghan territory from being used by militant groups against other states. The Taliban say they are committed to regional stability and reject accusations of harboring militants.

With negotiations stalled and mounting allegations by either side, analysts say military responses would do little to address deeper mistrust between the neighbors.

“In my view, the conduct of both Pakistan and Afghanistan has been escalatory,” Bahiss said. “Military responses may deliver short-term signaling, but they do not address the underlying mistrust.”