Russian Ambassador Albert Khorev confirmed on Monday that Pakistan and Russia are set to hold talks next week aimed at reviving Pakistan Steel Mills (PSM). This announcement was made during Khorev’s meeting with Sindh Chief Minister Syed Murad Ali Shah at the Chief Minister House in Karachi.
In their discussion, Chief Minister Shah emphasized Pakistan’s desire to enhance bilateral relations with Russia, specifically in health, education, and culture. Ambassador Khorev noted that experts from both countries will conduct preliminary discussions on PSM’s restoration through an online meeting. Following these talks, a Russian delegation plans to visit Pakistan Steel Mills to evaluate options for its revival.
Sindh’s Chief Minister suggested that establishing a new steel plant could be a practical solution for stabilizing Pakistan’s economy and generating job opportunities.
Earlier, on July 3, Pakistan’s federal government announced its decision to permanently close Pakistan Steel Mills, citing prolonged financial losses by the state-owned enterprise. According to the Industry and Production Secretary, the Sindh government was offered 700 acres out of the 19,000-acre PSM site to establish its own steel plant.
Last year, the Secretary disclosed that attempts to find a buyer for PSM had failed. He mentioned that aside from the allocated 700 acres, the remaining land would be reserved for industrial development.
Additionally, Arif Sheikh, PSM’s Chief Financial Officer, stated that the federal government’s decision to close the mill was driven by PSM’s consistent underperformance and financial losses.
