Karachi, May 13, 2025 — Islamabad and Russia have agreed to jointly set up a world-class steel mill in Karachi, a revival of economic relations between the two countries. The move follows wider mutual discussions for the improvement of trade and infrastructure cooperation.

Official sources state that the proposed steel mill is to be constructed on the basis of to Government (G2G) deal and will be supported with Russian money and know-how. The project will be set up in Karachi’s industrial area and is expected to generate thousands of job opportunities as well as enhance the domestic steel production capacity of Pakistan.

Steel Mill In Karachi: A Step Toward Industrial Self-Reliance

Pakistan Ministry of Industries and Production’s officials emphasized that the new facility will be dedicated to the production of high-grade steel to maintain infrastructure and defense sectors while minimizing the import dependence in the country. The plant should have an annual production capacity of more than one million tons based on modern energy-efficient Russian technology.

Russian delegates were confident in the growing industrial potential of Pakistan, and they renewed their intentions on deepening economic relations, particularly in energy and manufacturing. The partnership is also viewed as being a component of Russia’s expanding call to southern Asia markets as the global trade scope changes.

Analysts believe that the initiative may contribute greatly to strengthening the industrial base of Pakistan and restoring the steel industry, particularly after the fall of the Pakistan Steel Mills. The government’s general economic plan aims at attracting foreign investment and modernizing the country’s manufacturing capability.

Both parties are to formalize the project roadmap and formal agreements in the next few months. After the steel mill becomes active, it will serve as a monument for strategic cooperation between Pakistan and Russia, a sign of new ventures in the changing face of the economy in the region.