Islamabad, Moscow sign protocol to restore and modernize Pakistan Steel Mills

A general view of the deserted hot strip mill department of the Pakistan Steel Mills (PSM) on the outskirts of Karachi, Pakistan, February 8, 2016. (Reuters/File)
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Updated 11 July 2025
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Islamabad, Moscow sign protocol to restore and modernize Pakistan Steel Mills

  • The Pakistan Steel Mills has been non-operational since 2015 due to years of financial mismanagement, political interference and mounting losses
  • Both sides discussed plans to modernize the major steel complex on the sidelines of the recent INNOPROM Annual Industrial Forum in Yekaterinburg

ISLAMABAD: Pakistan and Russia have signed a protocol to restore and modernize the Pakistan Steel Mills (PSM) in Karachi, Pakistani state media reported on Friday.

The development comes days after the two sides discussed plans to modernize the major steel complex and expand industrial cooperation on the sidelines of the INNOPROM Annual Industrial Forum in Yekaterinburg.

INNOPROM, Russia’s largest annual industrial trade fair, brings together government delegations, business leaders and technology firms from over 30 countries to explore partnerships in manufacturing, engineering and high-tech industries.

The protocol was signed at the Pakistan Embassy in Moscow by Pakistan’s Secretary of Industries and Production Saif Anjum and Russian General Director of Industrial Engineering LLC Vadim Velichko, reaffirming the long-standing industrial partnership.

“The project aims to restart and expand steel production [in Pakistan], marking a new chapter in bilateral cooperation,” read a report on Radio Pakistan broadcaster.

The PSM, once Pakistan’s flagship industrial complex, was built in the 1970s with Soviet assistance. While it symbolized national self-sufficiency, the mill has been non-operational since 2015 due to years of financial mismanagement, political interference and mounting losses.

Moscow is also expected to finalize an agreement with Islamabad this summer to construct a new steel mill in Karachi, Russian Consul-General Andrey B. Fedorov told Arab News this month.

Technical experts from Russia have already inspected the proposed site for the new facility, and another delegation is expected soon to draft a detailed roadmap.

Russia has a long history of industrial cooperation with Pakistan, having previously built key infrastructure projects such as the Guddu Power Station in Sindh in the 1980s, one of the country’s major electricity producers.
Moscow and Islamabad have expanded cooperation in recent years despite global tensions over the war in Ukraine.


Pakistan PM invites Imran Khan’s party for talks after it signals openness to dialogue

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Pakistan PM invites Imran Khan’s party for talks after it signals openness to dialogue

  • Barrister Gohar said a day earlier dialogue with the government should continue alongside any political movement
  • Sharif says talks can only proceed on legitimate issues, ruling out what he calls ‘blackmailing’ or unlawful demands

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday invited jailed former premier Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party for dialogue, saying harmony among political forces was essential for the country’s progress, amid reports that the opposition was seeking talks with the government.

Pakistan has seen deepening political polarization between the ruling coalition led by Sharif and opposition groups coalesced around Khan’s PTI, which has alleged a sustained state crackdown since Khan’s ouster in 2022.

PTI’s top leadership, including Khan and his wife, is serving prison sentences in multiple cases ranging from corruption charges to inciting violence against state institutions and attacks on government properties.

PTI has rejected all allegations as politically motivated. It has also disputed the results of the February 2024 general election that brought Sharif to power, saying the vote was manipulated to sideline Khan and his party.

“I read it in the newspaper today that PTI and its allies are calling for a dialogue,” Sharif said while addressing a cabinet meeting. “I had invited them to the assembly, and I had invited them earlier as well.”

“If they are ready for dialogue, then the government of Pakistan is absolutely ready,” he continued. “For the sake of Pakistan’s progress and prosperity, there should be harmony among all political parties.”

Sharif, however, said talks could not proceed on the basis of what he described as “blackmailing” or unlawful demands, adding that dialogue could move forward only on legitimate issues.

He said he was reiterating his earlier invitation for talks.

A day earlier, PTI Chairman Barrister Gohar Ali Khan told Bol TV that dialogue with the government should not be ruled out, saying political movements should be accompanied by parallel engagement.

“The opposition must be given space,” he said. “I strongly support dialogue. Whatever movement takes place, dialogue should continue alongside it. This is something we should not give up.”

His statement came only days after Khan and his wife were sentenced to 17 years in prison on charges of understating the value of state gifts before acquiring them for personal use, a ruling that PTI leaders criticized as politically driven.

The government said the verdict was delivered after due legal process and should be respected.