Karachi: In a move to bolster industrial collaboration, Pakistan and Russia have agreed to establish a new steel mill in Karachi, leveraging local resources and enhancing trade relations between the two nations. This decision comes from a recent proposal under review by the Pakistani government, following a meeting between key officials from both countries.

According to Zameen.Com, the Russian Deputy Minister of Industry and Trade, Alexey Gruzdev, and Pakistan’s Minister for Industries, Production, and National Food Security, Rana Tanveer Hussain, convened to discuss the venture. The project aims to utilize 700 acres of Pakistan Steel Mills (PSM) land for the construction of the mill. This strategic initiative reflects a mutual interest in strengthening economic ties and addressing Pakistan’s annual import of iron and steel, which amounts to approximately USD 2.7 billion.

The new facility is expected to bridge the gap between the country’s steel production and demand, which last year amounted to 3.1 million tons. Located near Port Qasim, the mill’s placement will facilitate reduced transportation costs for raw materials, giving it a competitive edge in the market. The discussions also highlighted the need for advancements in agricultural machinery and technology, areas where Russia has agreed to extend its expertise and support to Pakistan.

This collaboration marks a significant step towards enhancing Pakistan’s industrial capabilities and is part of broader efforts to foster bilateral cooperation in agriculture and industrial development. Both nations have expressed a commitment to support investors and exchange expertise, paving the way for future projects that could further solidify their economic partnership.