Russia has finally signed an important business agreement with Pakistan. There were speculations about this for several months. Now on Friday, Pakistan and Russia jointly announced the agreement, under which a state -of -the -art steel mill will be established in Karachi.
The project is seen as the beginning of a new era of economic and industrial cooperation between the two countries. Pakistan’s economy is expected to benefit from billions of rupees from this deal, as well as it will also contribute significantly in industrial development and employment generation.
The agreement was reached at a function held at the Pakistan Embassy in Moscow on Friday. It was signed by Saif Anjum, Secretary, Ministry of Industry and Production of Pakistan and Vadim Velichko, Director General of Industrial Engineering LLC, Russia. Pakistan PM’s Special Assistant Haroon Akhtar Khan and Pakistan Ambassador Muhammad Khalid Jamali were also present on the occasion.
What is Russia-Pakistan deal? Let’s understand
According to a report by Pakistani newspaper Dawn, Russia has officially confirmed the first confirmation that it has finalized the agreement with Pakistan to set up a new steel mill in Karachi. The project is part of the restoration and modernization of the Pakistan Steel Mills (PSM), which has been facing economic and managerial challenges for a long time. In a statement, senior Pakistan official Harun Akhtar Khan said, “The agreement with Russia will prove to be a milestone for the progress of Pakistan Steel Mills and the industrial future. The project will not only increase industrial production, but will also create new employment opportunities for thousands of people.”
Under this agreement, the PSM will not only be re -erected, but a new state -of -the -art steel plant will also be set up on 700 acres of land in Karachi. The project will use Russia’s advanced steel manufacturing technology, which is expected to reduce Pakistan’s dependence on steel imports by 30%. Pakistan imports about $ 2.7 billion steel and iron every year, and there is a difference of 3.1 million tonnes between the demand and supply of steel in the country. This new plant will not only reduce the import bill, but will also increase local employment opportunities.
Pakistan’s GDP will benefit
The estimated cost of the deal is $ 2.6 billion (about 22,000 crore rupees), which is believed to be a major investment in Pakistan’s economy. The project will not only increase steel production at the local level, but it will also increase export capacity, which will increase foreign exchange reserves. Experts believe that the deal can benefit Pakistan’s GDP (GDP) in a long -term billions of rupees.
In addition, the construction and operation of the new steel mill will directly and indirectly create thousands of jobs. In particular, the project will bring new opportunities for local youth and technical experts at an industrial center like Karachi. This will not only strengthen the local economy, but will also promote technical innovation in the industrial sector. In addition, the agreement is part of the deep bilateral relations between Pakistan and Russia. Both countries have also been increasing cooperation in the energy sector in recent years, including the Pakistan stream gas pipeline and the supply of crude oil that started in 2023.
New twist in Russia-Pakistan relations
Pakistan Steel Mills was established in 1973 in collaboration with the then Soviet Union and was once the largest industrial complex in the country. The mill began in 1985, but its operations in 2015 were completely closed due to financial mismanagement, infrastructure deficiency and other administrative problems.
The latest deal is an important part of the growing diplomat and economic relations between Russia and Pakistan. In recent years, both countries have taken several steps to promote cooperation in areas such as trade, defense, and energy. The Deputy Prime Minister of Russia recently said that Pakistan is a natural ally of Russia and there is significant progress between the two countries in business and economic relations.
An agreement was reached amid tension with India
This agreement is reached when there is a rapid change in the regional geopolitical. After the Pahalgam terror attack, India entered Pakistan and run Operation Sindoor for the elimination of terrorists. After which there was a conflict between the two countries. In this context, some analysts believe that Russia’s move may affect its traditional relations with India. However, Russia has previously dismissed reports that see it as weakening their relations with India.
There are no less challenges
Although the deal is expected to Pakistan, experts have also paid attention to some challenges. The history of Pakistan Steel Mills has been full of managerial disability and financial deficit. Transparent management, technical expertise, and continuous investment will be required to make this project a success. Despite this, the aim of the authorities is to turn the plant within two years. The Government of Pakistan has allocated 700 acres out of 19,000 acres of PSM for new plant and additional land for industrial park. For this, funding will be made through private sector participation and re -use of PSM properties.