Pakistan in serious talks with Russia on steel mills issue
ISLAMABAD: Pakistan is in serious talks with Russia to set up a new steel mills or restore the Pakistan Steel Mills (PSM) in Karachi to fulfill local demand.
This was stated by the Special Assistant to the Prime Minister (SAPM) on Industry and Production Haroon Akhtar Khan in a chat with Business Recorder, saying that both the countries, in the past few months, have held two fruitful meetings on the subject and are moving ahead on the matter.
The SAPM, responding to a question, said that 'technical experts are analysing the state of the present machinery of PSM and if 50 percent machinery is useable, the government is surely going to restore the PSM with Russian cooperation'. He said that the PSM owned 18,660 acres of land, out of which, 710 acres is under consideration for the setting up a new steel plant.
Pakistan, Russia agree to establish new steel mills in Karachi
According to officials, although Pakistan is rich in iron ore, with estimated reserves of 1.887 billion tons, it still imports about $2.7 billion worth of steel every year.
Officials said that domestic steel production is not enough to meet all demand, with a supply gap of 3.1 million tons last year.
The proposed steel plant site is strategically located near Port Qasim, which will help reduce transportation costs of raw materials, thereby, providing a competitive advantage.
The SAPM further said that to safeguard the interests of the business community the government is to introduce some amendments in the Securities and Exchange Commission of Pakistan (SECP).
He added that the homework on amendments to the SECP law has been completed, a new clause will be added, amendment to the law regarding the investigation of the financial monitoring unit are also under consideration, in the name of suspicious transactions, the matter is being confused by sending it to investigative agencies without investigation.
He said that the investigating agencies including National Accountability Bureau (NAB), Federal Investigation Agency (FIA) and other anti-corruption departments will have to seek permission from SECP before launching any investigation against any business entity or individual.
Khan said that if there is suspicion of terror financing and money laundering, then after investigation, it should be sent to the relevant agency. Talking about the remittances and other payment transfers through banking channels, the SAPM said such payments are already reaching the country through reliable and proper channels, so there should not be any need to investigate the sources.
However, illegal channels such as Hawala and Hundi must not be allowed.
He said that to promote and encourage the investment in the country the government is considering to waive off additional fines and surcharges on investment in industrial sector, but it will take a little time.
He said that his ministry has finalised the industrial package to run closed industrial units in the country and increase business activities.
He said that for the first time in the country, the government has decided to introduce bankruptcy law. The purpose of the law is to enable the owners of closed industrial units to obtain loans from banks. Khan said that instead of auctioning bankrupt industrial units, the law will allow banks to give loans to such units, so, that they can restore themselves.
Copyright Business Recorder, 2025
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