Latest news with #PakistanSteelMills
Express Tribune
2 days ago
- Business
- Express Tribune
Victory celebration and reality check
Listen to article Pakistani luck is flying these days. It has been blessed with massive success, one after the other. First, Pakistan successfully and comprehensively defeated India in the military conflict. It was an enormous triumph, which laid the foundation for a regional reset. India, which had portrayed itself as the regional power, a rising market and economy in Asia, and a leader of the Global South, had to face a checkmate at the hands of Pakistan. Second, on the diplomatic front, Pakistan achieved many accomplishments. After the war, India sent a delegation to the world to launch a propaganda campaign. It wanted to tag Pakistan with terrorism. Pakistan analysed the situation and sent its own delegation, which outperformed the Indian delegation. The world did not buy the Indian argument, and the Pakistani point of view had wider acceptance. Pakistan maintains a balanced relationship with the world's major powers, including China, the United States, and Russia. There is no need to discuss the China-Pakistan relationship, as everyone is aware that both countries share a deep and enduring brotherhood. However, the recent shift in the Pakistan-US relationship is the talk of the town. The US played a prominent role in halting the war between India and Pakistan. After the truce, President Trump praised Pakistan for its sensible and rational behaviour. He also invited Army Chief General Asim Munir for a meeting at the White House. Both sides reportedly discussed enhancing the relationship in multiple fields. On the other hand, Pakistan and Russia intensified efforts to further enhance and strengthen their bilateral relationship. Russia has shown interest in investing more than $2 billion in reviving and expanding Pakistan Steel Mills. It is a good omen, as Pakistan was looking for opportunities to revive the mill. Also, a breakthrough happened at the SCO defence ministers' meeting, where Russia supported Pakistan's stance on terrorism. Simultaneously, Pakistan played a prominent and leading role in ending the Iran-Israel war. It diligently convinced the US administration that the war in the region had no justification. Therefore, all efforts must be made to end the war and work for peace. These examples collectively indicate that Pakistan has achieved significant success in recent months. However, the country needs to be cognizant that these achievements cannot be sustained without solving domestic challenges. Pakistan continues to face multiple challenges. The economic and governance system is in shambles. The government claims that the economy is improving and that the budget will provide a foundation for accelerated economic growth and development, as promised the previous year. But the Economic Survey 2024-25 and the budget for 2025-26 present a bleak picture. The Economic Survey shows that the national GDP grew at a 2.7% rate. However, independent sources are not willing to accept government claims and instead raise questions. They question that, during the first three quarters of FY25, the economy grew at an average annual rate of 1.7%. To achieve a yearly rate of 2.7%, the economy would have had to grow at 5.3% during the last quarter, which is not possible. Apart from that, agriculture, which had provided a significant boost to economic growth in FY24, presented a dismal picture in FY25. A booming sector experienced a sharp decline in production and market share. The growth rate fell to 0.56% in FY25 from 6.25% in FY24, driven by a steep fall in the growth of major crops. Major crops' growth rate fell to -13.26% in 2025, from 11.3% in 2024. Similarly, the large-scale industry is struggling to enter a positive growth trajectory, having demonstrated a negative growth of -1.7%. Social indicators too are pretty disturbing. The World Bank estimates that 44.7% of the population lives below the poverty line, and 16.5% of the population resides in extreme poverty. Poverty is increasing, despite the government's assertions of investing in poverty reduction such as the Benazir Income Support Programme (BISP). This raises questions about the effectiveness and sustainability of the BISP. Food insecurity is another constant irritant, and a 2013 study estimated that 58.8% of the population in Pakistan was food insecure. Unfortunately, we have to rely on old data because the government has not updated it. There are fears that food insecurity has increased over the years due to multiple factors. Poor economic conditions and the devaluation of the PKR have substantially impacted people's purchasing power, resulting in fewer resources available to afford healthy food. Additionally, inadequate governance and management of the agricultural sector have led to lower production and reduced availability of quality food. Bad governance is further complicating the situation. The elite class has designed the institutions to ensure the exclusion of common citizens from the governance system without explicitly mentioning it. The system encourages wealth accumulation, and there is no system in place for redistributing wealth or resources. It is deepening the divide between the haves and have-nots. A few influential individuals have all the resources, while millions struggle to make a decent living. Furthermore, the elite have devised an extremely complex business system and environment to strengthen their control over the economic system and resources. This system has given birth to rampant corruption and deep-rooted rent-seeking behaviour. It only works for the powerful or those who can afford to offer bribes. Environmental degradation, particularly climate change, is another issue that is worsening over time. Climate change-related disasters, such as floods and droughts, are regular visitors. Pakistan is still struggling to recover from the impacts of the 2022 floods, and there is a prediction that Pakistan will again face floods. On the other hand, climate change is severely impacting agriculture, which is threatening Pakistan's food security and economy. Farmers are bearing the brunt of climate change. Poor governance and attitude of the government have left farmers vulnerable to the impacts of climate change. In conclusion, Pakistan needs to be mindful that its heyday can be limited if it does not address these issues. The writer is a political economist and a visiting research fellow at Hebei University, China
The Hindu
14-07-2025
- Politics
- The Hindu
Pakistani airline blunder sends passenger to Saudi Arabia instead of Karachi
In a bizarre airline blunder, a passenger from Lahore was flown to Saudi Arabia instead of Karachi and was deported back to Pakistan. The incident happened on July 7, 2025 with Malik Shahzain, an electrical engineer from Karachi, aboard an AirSial flight. A Civil Aviation Authority official said they are investigating the unusual incident. "A passenger boarding the wrong flight by mistake can happen, but we have never come across a case where a domestic passenger ended up on an international flight," the official said. India, Pakistan extend airspace ban for each other till July 24 According to Mr. Shahzain, he was returning to Karachi from Lahore on the night of July 7, 2025 after learning that his child had fallen ill. He arrived at the airport on time and presented his pre-booked boarding pass and was then directed to the lounge and the departure gate. "There were two AirSial aeroplanes on the tarmac, one headed to Karachi and the other to Jeddah. The staff, without checking properly, put me on the international flight, and I only realised this when, even after two hours of flying time, we did not land," Mr. Shahzain said. While the passenger landed in Jeddah, his luggage reached Karachi. At the Jeddah airport, Mr. Shahzain was questioned by immigration officials for hours before they realised that he landed there for no fault of him and directed the airline to put him on their next flight to Karachi. Shehbaz Sharif says Pakistan's nuclear programme is for 'peaceful activities and self-defence' However, the ordeal didn't end there, as the airline flew the passenger back to Lahore, informing him he would need to arrange his ticket to Karachi. 'I was informed about the illness of my son and decided to return home, as I had gone to Lahore on office work. Instead, I underwent a 15-hour ordeal where I ended up in Jeddah and had to endure hours of interrogation,' Mr. Shahzain said. Pakistan, Russia sign agreement to revive Pakistan Steel Mills project The engineer claims the airline staff accepted their mistake in putting him on the international flight from Lahore to Jeddah when he was supposed to fly from Lahore to Karachi. However, he is still awaiting a formal response and apology from the private airline. "So far, the airline has issued no explanation or apology for my ordeal,' Mr. Shahzain said. AirSial is a Pakistani private airline based in Sialkot.
News18
14-07-2025
- Business
- News18
Islamabad, Moscow Sign Agreement To Restore Pakistan Steel Mills Project
Last Updated: Pakistan and Russia signed a protocol to restore Pakistan Steel Mills in Karachi, aiming to restart steel production. The Pakistani embassy in Russia announced on Friday that the two countries have signed 'protocol to restore and Pakistan Steel Mills (PSM) in Karachi", in what it called was a 'reaffirmation" of their 'long-standing industrial partnership". The agreement was signed at the Pakistan embassy in Moscow by Pakistan's secretary of industries and production, Saif Anjum and Vadim Velichko, general director of Industrial Engineering LLC from the Russian side. The event was attended by SAPM Haroon Akhtar Khan and Pakistan's Ambassador to Russia, Muhammad Khalid Jamali. The project seeks to restart and expand steel production, Hindustan Times reported. Khan said, 'Reviving PSM with Russia's support reflects our shared history and commitment to a stronger industrial future." The Pakistani embassy in Russia notes that PSM, built with Soviet help in 1973, stands as a lasting testament to the enduring ties between Pakistan and Russia. Earlier this month, Pakistan and Russia agreed to collaborate on establishing a robust rail and road network to link the South Asian country with Central Asia and Russia, providing landlocked states direct access to warm waters, a media report said on Friday. Federal Minister for Communications Abdul Aleem Khan and Russian Deputy Minister of Transport Andrey Sergeyevich Nikitin met on the sidelines of the Shanghai Cooperation Organisation (SCO) ministerial conference in Tianjin, China, and agreed to speed up infrastructure development in the region to boost trade and economic integration. According to PTI, Abdul Aleem Khan stated that Pakistan's modernisation efforts include digitising transport infrastructure, introducing barrier-free motorways, mandatory e-tagging, and comprehensive CCTV surveillance. He said the reforms were part of Pakistan's broader goal to optimise regional connectivity and cross-border trade. Meanwhile, last month, Pakistan and Afghanistan agreed to advance the Uzbekistan-Afghanistan-Pakistan (UAP) rail project. In a phone call, Deputy Prime Minister and Foreign Minister Ishaq Dar and Afghanistan's Acting Foreign Minister Amir Khan Muttaqi agreed to work towards early finalisation of the framework agreement. Get breaking news, in-depth analysis, and expert perspectives on everything from geopolitics to diplomacy and global trends. Stay informed with the latest world news only on News18. Download the News18 App to stay updated! view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India.com
13-07-2025
- Business
- India.com
Russia Backs Pakistan's Rusting Pride – And Sends A Message To India
Moscow/New Delhi: In a move that is bound to stir concern in New Delhi, Russia has formally signed a new industrial cooperation agreement with Pakistan – a revival attempt of the long-defunct Pakistan Steel Mills (PSM) in Karachi. Described as a protocol of cooperation, the pact was signed at the Pakistani Embassy in Moscow and promises to restart and expand steel production at a facility that was once the pride of Soviet-Pakistani engineering. This deal marks a new chapter in a forgotten story – one that began more than half a century ago. Back in 1971, it was the Soviet Union that helped lay the foundation of Pakistan's largest industrial complex. Today, after decades of neglect, a trail of mounting losses and shifting political winds, Russia is circling back to finish what it once started. 'This revival, with Russia's help, is more than a business deal. It reflects our shared industrial history and a future we want to build together,' said Pakistan Prime Minister's Special Assistant Haroon Akhtar Khan during his Moscow visit. According to Pakistan's national news agency APP, the signing ceremony also reaffirmed the 'long-standing industrial partnership' between the two nations. The objective is to bring the Karachi-based steel plant back to life and boost its output, possibly restoring thousands of lost jobs and reigniting a sector that has remained idle for far too long. Also In The Race, But Left Behind For months, China too was eyeing the same prize. When Imran Khan's Pakistan Tehreek-e-Insaf (PTI) government decided to restart the revival efforts in 2018, it first engaged a Chinese firm for negotiations. However, the talks hit a dead end. The Chinese bid faded, but the Russians, perhaps driven by nostalgia and ownership of the project's origins, never stopped knocking. Russia insisted it was the only logical choice to resuscitate the steel plant it once designed. The Kremlin saw itself not as an outsider but as a returning builder – one who knew the bones of the structure better than anyone else. A Ruin Built From Decay And Delay Once a symbol of industrial ambition, the PSM began its steep descent in 2008. Losses piled up after a slew of politically motivated hirings, combined with the blowback of the global financial crisis. By the end of the 2008-09 fiscal year, the plant had already sunk into a deficit of nearly 17 billion Pakistani rupees. That number ballooned over the next five years, touching 118.7 billion. Even as successive governments, first under the Pakistan's People's Party and later the Pakistan Muslim League (Nawaz), watched the unit bleed. There was no coordinated effort to stop the rot. President Pervez Musharraf's regime had once seen the plant report profits of over 9.5 billion rupees in 2007-08. A decade later, by May 31, 2018, it had sunk to a terrifying 200 billion-rupee hole. The PTI came with promises of revival. What followed was a silent bidding war between Russia and China for control of the broken machine. This new agreement finally puts Moscow in the driver's seat. The Express Tribune reports that Pakistan now hopes this Russian-backed turnaround will not only rescue an industrial dinosaur but also breathe new life into a crucial sector of its crippled economy. Russia, too, appears eager to re-establish its economic footprint in South Asia, starting with steel, in a country once deeply aligned with the United States but now visibly drifting toward Moscow and Beijing.
Express Tribune
12-07-2025
- Business
- Express Tribune
PSM revival deal
Listen to article The recent agreement between Pakistan and Russia to revive the Pakistan Steel Mills (PSM) is cause for cautious optimism, as it could mark an industrial reboot and a strategic realignment. The deal agreed in Moscow would transform the defunct Karachi plant into a modern metallurgical hub. This collaboration, echoing the mills' Soviet-assisted origins in the 1970s, could catalyse Pakistan's industrial resurgence while redefining Eurasian partnerships. PSM was originally set up with Soviet assistance and was regarded as a symbol of bilateral solidarity. However, despite its potential, the facility was plagued with problems from the beginning and was loss-making for most of its history. Government support was the only reason it sputtered along until 2015, when it was closed for cost taxpayers billions of rupees a year in subsidies. The revival plan would see Russia commit to dismantling obsolete infrastructure and constructing a "state-of-the-art facility" on 700 acres of the existing site, with additional land earmarked for an industrial park. Technical teams have already inspected the premises, and a detailed roadmap is underway to forge a "stronger industrial future". However, without properly studying market dynamics, a revived mills could turn into an even whiter elephant. Keep in mind that, for better or worse, we are located right next to China, one of the world's most cost-effective sources of high-quality steel. To succeed, the new PSM would have to compete with Chinese producers on both price and quality, which seems an uphill task. Conversely, the government could use tariffs to protect it, but this would hurt Pakistani consumers and could offend the Chinese. But there is still hope that even if it cannot compete with China on price, industrial renewal could trigger enough demand for steel that PSM could feasibly reach high sales levels and remain profitable by carving out its own market niche. All that is needed is professional management and foresight.
