ISLAMABAD: Pakistan and Russia have agreed on a target year of 2027 to begin reconstruction and expansion work on the long-inactive Pakistan Steel Mills (PSM). This timeline was outlined during a review session, where officials shared plans to move the stalled revival project toward implementation.
The next major milestone for the project will be the signing of a formal Engineering, Procurement and Construction (EPC) contract with the Russian side, after which physical work on the mill’s rehabilitation is expected to commence. An EPC agreement is being drafted to ensure the project’s financial viability and readiness for execution.
Progress toward the revival has been ongoing since late 2025, when Pakistan and Russia formalised cooperation through a protocol aimed at rehabilitating and modernising the steel complex. As part of preparatory efforts, a Russian engineering firm conducted a technical audit of the mill and evaluated its assets, which are currently estimated to have a book value of roughly Rs. 139 million.
During discussions, lawmakers also raised legacy issues related to past disputes, including disagreements over gas supply contracts with a former operating partner. The session also addressed the status of shareholdings at the mill: the majority stakeholder has divested most of his equity, while a remaining small share cannot be transferred without regulatory approval. Government authorities retain the right to seize these shares if contractual obligations remain unmet.
The agreed 2027 timeline reflects renewed cooperation between Pakistan and Russia to restart operations at Pakistan Steel Mills, which remains one of the country’s largest industrial assets and a key component of its heavy industry sector.
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