ISLAMABAD - The government is considering a proposal to establish a new steel mill in Karachi with Russian cooperation and the both countries agreed to form working groups to move forward on the project.
In this regard, Deputy Minister of Industry and Trade Russian Federation Aleksei Gruzdev met with Minister for Industries, Production and National Food Security Rana Tanveer Hussain here on Wednesday. The minister informed that the government has earmarked 700 acres land of Pakistan Steel Mills for establishing a new steel mill. He said despite being blessed with considerable reserves of iron ore (estimated reserves of 1887 million tonnes), Pakistan is forced to import around $2.7 billion of iron and steel. There is perpetual gap between domestic production and demand of iron and steel. For the last year, the gap is estimated at 3.1 million tonnes, he added.
Pakistan’s per capita steel consumption level is below even those of developing countries indicating significant growth potential over medium and long term. He said efficiency of Pakistan’s steel industry is limited as it segmented (600 small units) and based on old inefficient technology. The proposed site is located at Karachi and in closed to Port Qasim that reduces cost of transportation of raw materials. Pakistan’s industrial and agricultural experts are set to visit Russia, marking a significant step in strengthening bilateral ties between the two nations.
During the meeting, they emphasised on balance trade between both countries. Rana Tanveer stressed the need for modern agricultural machinery to boost crop yields and enhance agricultural productivity. He said the government will provide all the facilities to the Russian investor in the country. Aleksei Gruzdev said that his country will provide modern agricultural machinery to Pakistan in order to boost crop yields and enhance agricultural productivity across the country.
The meeting was attended by deputy trade representative of the Russian Federation in Pakistan Denis Nevzorov, Secretary for Industries and Production Saif Anjum, Secretary National Food Security and Research Ali Tahir, Additional Secretary National Food Security Amir Mohyudin, Deputy Chief Industries and Production Abdul Samad and Executive Engineer PSM Engr Muhammad Shoaib.
Meanwhile, Federal Minister for Commerce Jam Kamal Khan welcomed Mr Alexey Gruzdev, the Deputy Minister of Industry and Trade of the Russian Federation, for a meeting aimed at enhancing trade relations between Pakistan and Russia. Held at the Ministry of Commerce, the discussions focused on strengthening economic cooperation and exploring new trade opportunities between the two countries. During the meeting, Jam Kamal Khan highlighted the significant untapped potential in Pakistan-Russia trade. He emphasised that with active and consistent engagement, the trade volume could be significantly increased.
The upcoming 5th Joint Working Group (JWG) meeting, scheduled for September 26-27, 2024, in Islamabad, was also discussed. The agenda includes discussions on industrial cooperation, customs, investments, transport and logistics, and agricultural trade. The Russian deputy minister expressed his satisfaction with the current state of trade relations but agreed that there is vast room for improvement. He outlined areas for future cooperation, including the supply of mineral fertilisers, modernisation of Pakistan’s fertiliser plants, export of agricultural machinery, supply of railway machinery, collaboration in the pharmaceutical industry, supply of metal products, and cooperation in digital technologies.
Mr Gruzdev emphasised Russia’s willingness to offer expertise in modernising Pakistan’s fertiliser plants and to provide training programmes for Pakistani farmers to enhance agricultural productivity. He also highlighted Russia’s interest in expanding exports of agricultural and railway machinery, as well as metal products, to Pakistan. In conclusion, both ministers acknowledged the strong potential for growth in areas such as agriculture, pharmaceuticals, livestock, and steel, and expressed optimism about the future of Pakistan-Russia economic relations.
