Latest news with #PakistanSteelMills
India.com
3 days ago
- Business
- India.com
‘Fabricated, Aimed At Disrupting Ties With India': Russia Dismisses Pakistan's Economic Claims
New Delhi: Russia has categorically rejected Pakistan's recent claims of expanding economic cooperation, including the establishment of a new steel mill in Karachi. The Russian government labeled these reports as 'fabricated' and accused Pakistan of attempting to undermine the longstanding strategic partnership between Moscow and New Delhi. The controversy began when Pakistani media reported that Russian officials had met Pakistani counterparts to discuss industrial collaboration, particularly the creation of a steel mill in Karachi. These reports suggested a revival of the industrial cooperation reminiscent of the 1970s when the Soviet Union assisted in establishing Pakistan Steel Mills. However, Russian authorities swiftly dismissed these reports. A senior Russian official stated, 'These reports are exaggerated and are being spread by those attempting to disrupt the strong and privileged strategic partnership between Russia and India.' The official further emphasised that no such agreements had been made, and the discussions were misrepresented. The Russian Foreign Ministry echoed these sentiments and stated that while certain discussions had taken place, they did not involve any multi-billion-dollar contracts with Pakistan. The ministry accused Pakistan of fabricating these stories to create discord between Russia and India. This incident highlights the delicate nature of international relations and the potential for misinformation to strain diplomatic ties. Russia's swift denial emphasises its commitment to its strategic relationship with India and its vigilance against attempts to destabilise this alliance.
India.com
5 days ago
- Business
- India.com
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.
Arab News
14-05-2025
- Business
- Arab News
Pakistan and Russia agree to establish new steel mill in Karachi — state media
ISLAMABAD: Pakistan and Russia have agreed to establish a steel mill in Karachi, state media reported on Tuesday, aiming to boost bilateral ties and expand industrial collaboration between the two countries. Their understanding reflects a broader deepening of Pakistan-Russia relations in recent years, including energy cooperation on oil and gas supplies. In 2023, the two sides worked on a deal for the delivery of Russian crude to Pakistan, and talks have continued on broader energy partnerships. The two countries are also collaborating on the Pakistan Stream Gas Pipeline, a major infrastructure project aimed at transporting imported gas from Karachi to Punjab to help meet Pakistan's energy needs. The idea of the new steel mills was discussed during a meeting between Russian representative Denis Nazaroof and Special Assistant to the Prime Minister (SAPM) Haroon Akhtar Khan. 'The primary focus of the discussion was the establishment of new steel mills in Pakistan,' the Associated Press of Pakistan (APP) news agency reported. The new project echoes the historic collaboration between the two sides in the 1970s, when the Soviet Union helped set up Pakistan Steel Mills (PSM). PSM was once the country's largest industrial complex. However, the facility suffered decades of neglect, financial mismanagement, and political interference, ultimately shutting down production in 2015 after accumulating billions in losses. 'Pakistan is a secure and thriving hub for investment, and the international community has recognized its potential,' Khan said during the meeting. 'I invite all Russian businesspeople to explore investment opportunities in Pakistan,' he added. Khan also emphasized the Prime Minister's vision to attract foreign investment and underscored the potential for meaningful Pakistan-Russia cooperation in the steel sector.
Business Recorder
22-04-2025
- Business
- Business Recorder
From iron to copper age
Pakistan entered the Iron Age in the year 1973 when work commenced on the construction of Pakistan Steel Mills (PSM). Bhutto was in a hurry as we were already behind in producing the basic building blocks of development. Located at Port Qasim it was the largest industrial complex of the country. It reached peak production of 3 MTPY (Million Tons Per Year) before the production was stopped in June 2015. It was a short entry and exit out of the vital and much needed Iron Age. Today Pakistan is importing 6 to 7 MTPY of steel. Originally, the Blast Furnace was designed on imported Iron Ore and Coal which were to be replaced by indigenous resources which never happened. The deposits at Kalabagh, Chinoit, Chichalli, Naokundi remain un-utilised till today. In the recently held Minerals Forum (April 8, 9) at Islamabad, the message was loud and clear: Pakistan is now entering the copper age. While the concentrates of copper, gold, silver from Saindak are being shifted to China for refining, Reko Diq will start production in the year 2028. It will be one of the largest copper mines of the world. Local production will be limited to producing concentrate which will then be shipped abroad for refining from Port Qasim, the same location where stands the monument of our iron age. In 1973, the berths were used for import of raw materials for local steel production, while in 2028 our valuable minerals will be exported for finishing and value addition to be imported back for our domestic use at a much higher price. PSM was established to meet our needs while we have decided to enter the Copper Age by export of the un-finished concentrate. The Tethalan Belt that stretches from the province of Balochistan all the way up to Khyber Pakhtunkhwa (KP) is rich in minerals of all kinds. Metallurgical Corporation of China (MCC), the contractor who built the mine at Saindak as a turnkey project, now owns and runs it. After twenty years of mining (1992 to 2022) MCC has been granted an extension for another ten years. Reko Dig Mining Company jointly owned by Barrack Gold and Governments of Pakistan and Balochistan have succeeded in getting financing of USD 3 billion to build the mining infrastructure for production of concentrate that includes crushing, grinding and floatation to produce concentrate. We have an opportunity to enter the Copper Age with a bang if we take charge of our share of the concentrate and process it locally to produce our own copper, gold, silver. Finishing gold and copper are easier as they come in relatively pure form. Copper requires smelting followed by refining through an electrolytic process, which is power intensive. A metal refining facility can be set-up at Thar where inexpensive electricity is available. The decade of the seventies was both tumultuous and exciting. First the free and fair elections of 1970 where the will of the people prevailed followed by the break-up of Jinnah's Pakistan but did usher in an era of civilian supremacy. Several important projects were launched in the country to restart the process of nation building which had been stalled. For professionals those were challenging times. Inspired by the PSM project I decided to become a Metallurgist. Our final year project was built around the Blast Furnace which was being installed to convert the ore into Pig Iron which was then converted to produce Steel. Pakistan entered the Iron Age with our heads-up. Resource Development Corporation (RDC) was set up to develop the mining sector of the country. It was RDC that launched the Saindak project with the formation of Saindak Metals Limited (SML), which then started building the first Copper mine of Pakistan in the year 1992. MCC was selected as the contractor. Like PSM of the seventies SML was the largest project of its time costing Rs 16 billion with a foreign exchange component USD 580 million provided by China. Due to gross mismanagement SML was unable to produce the much-needed Copper for the country. Through PSM we were able to enter the Iron Age in the decade of the seventies but could not enter the Copper Age in the decade of the nineties due to failure of SML. It did not end here. As SML was the largest project launched by RDC the Government of Baluchistan insisted that head-office of RDC should be shifted to Quetta which it was but then it was merged with SML. All the exploratory work done by RDC under the dynamic leadership of the great Geologist Dr Bilgrami was shelved. Nations must learn from their mistakes to come out of the Stone Age and enter the modern era of Iron and Copper ages. While we have exited out of the Iron Age due to mismanagement and vested self interests our next journey should be carefully planned. Development of Thar Coal is a jewel in our crown. We were able to reach the Black Gold in the year 2018. Two mines are functional; there each producing about 7 MTPY of Coal which is being used for power generation. Last year we were able to Gasifier the coal to produce our own Synthetic Natural Gas (SNG) to replace the imported LNG (Liquefied Natural Gas). Currently, a complete Coal-Based Energy System is being developed using 21st century Clean Coal Technologies. Thar is the energy future of Pakistan. Having worked on all major minerals project of Pakistan, I firmly believe that our future is bright provided we are able to build a proper framework with nation building in mind every other consideration should be pushed aside. Pakistan and its people should come first if we desire to enter the Copper Age and prosper not exit as we did in case of Iron by shutting down PSM. Focus must be on the development of Pakistan. Copyright Business Recorder, 2025
Express Tribune
02-03-2025
- Business
- Express Tribune
National Highway blocked for seven hours as Steel Mills employees stage protest
Steel Mills employees staged a protest on the National Highway for over seven hours on Saturday, paralysing traffic and leaving commuters stranded for hours, according to Express News. The demonstration began around 5pm, with workers rallying against dismissals and the suspension of electricity and gas supply to their residential quarters. Both tracks of the highway were blocked, causing severe traffic congestion in surrounding areas. Traffic police diverted vehicles from Port Qasim Chowrangi and FB Area Cut to alternative routes. However, long queues of vehicles remained on nearby roads, creating hardships for commuters. According to a traffic police spokesperson, the protest ended at around 12:30am after negotiations between the workers and authorities. Traffic flow on the highway was later restored. The employees have been demanding the reinstatement of their jobs and restoration of utility services, which were disconnected following the layoffs. Last year in November, Sindh Chief Minister Murad Ali Shah sought assistance from the Russian embassy in reviving Pakistan Steel Mills, proposing the installation of a new plant to strengthen the economy and boost employment. The request was made during a meeting with Russian Ambassador Albert P. Khorev, who was accompanied by Russian Consul General Andrey Fedorov and other officials. Chief Minister Shah emphasised the importance of Pakistan's relationship with Russia, highlighting that a functional steel mill could stabilise the economy and resolve employment issues for mill workers.
