Amid tensions with India, Pakistan makes Rs 22000000000 deal with Russia, it will enable Islamabad to significantly…, with most advanced technology…
New Delhi: Amid ongoing tensions between India and Pakistan, Russia has made a significant economic agreement with Pakistan. Under this billion-dollar deal, a modern steel plant will be constructed in Karachi. This agreement aims to revive the Soviet-built Pakistan Steel Mills (PSM), which has been closed since 2015. The estimated cost of this deal is 2.6 billion dollars (approximately 22,000 crore rupees), which could play a crucial role in strengthening Pakistan's economy. What is the agreement?
This agreement between Russia and Pakistan has been made to revive the closed steel plant in Karachi. This plant was established in the 1970s with the help of the Soviet Union. It remained operational until 1992, but was eventually shut down in 2015 due to economic and technical reasons. Under the new agreement, Russia will provide advanced steel manufacturing technology, meaning machines with the most advanced technology for steel production, which is expected to reduce Pakistan's reliance on steel imports by up to 30%.
The aim of this project is to reduce Pakistan's 11.2 million metric tons steel consumption deficit. In March 2025, the cost of imported scrap and semi-finished products was 324 million dollars. This project will not only reduce the import bill but also increase local employment opportunities. How will Pakistan benefit?
This deal will help strengthen Pakistan's economy. A 30% reduction in steel imports will relieve pressure on foreign exchange reserves, which is crucial for Pakistan which is currently grappling with an economic crisis. The revival of the steel plant will create thousands of direct and indirect job opportunities. This will boost economic activities in Karachi and surrounding areas. By utilizing Russia's advanced steel manufacturing technology, Pakistan's steel industry will become modern and competitive. This will improve the quality and efficiency of local production. Increased self-reliance due to reduced dependence on imported scrap and semi-finished products is important for long-term economic stability. A matter of concern for India?
This agreement has taken place amid India-Pakistan tensions, leading to concerns in India regarding this deal. Tensions between India and Pakistan are at an all-time high following a terrorist attack in Pahalgam, Jammu and Kashmir, on April 22, which resulted in the death of 26 people. In response, India conducted airstrikes on terrorist bases in Pakistan under Operation Sindoor.
Russia has always considered India its strategic partner, but this time its response has been balanced and neutral. Russian President Vladimir Putin condemned the attack but called for both India and Pakistan to ease tensions and also offered mediation. This stance was unexpected for India, as Russia had previously openly supported India on the Kashmir issue.
Relations between Russia and Pakistan have strengthened in recent years.
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