Russia and Pakistan agree on the construction of a new steel plant

Russia and Pakistan have concluded an agreement on the construction of a steel mill in the city of Karachi in southern Pakistan. It was formalized at a meeting between Russian Ambassador to Pakistan Denis Nazarov and Special Assistant to the Prime Minister of Pakistan Haroon Akhtar Khan.

Both parties agreed to establish joint Russian-Pakistani groups for the construction of the new enterprise. It will be located on the site of the liquidated Pakistan Steel Mills (PSM). The Pakistani government has allocated 700 acres of land where the old plant was located for the construction.

The PSM plant was built in 1973 under the guidance of Soviet specialists. The plant has been idle since 2015. Since then, the Pakistani authorities have made attempts to resume steel production there, but all of them proved unsuccessful.

Earlier attempts were made to involve Russia in the modernization of PSM. In 2003, the Pakistani government entered into a memorandum of understanding with Russia, seeking a partnership with TyazhPromExport, the company that built the plant. A second memorandum, concluded in 2013, provided for a $1 million loan to Pakistan.

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