Pakistan and Russia have agreed to target 2027 as the starting year for construction work on the revival and expansion of Pakistan Steel Mills, a parliamentary panel was informed. The update came during a meeting of a subcommittee of the Public Accounts Committee reviewing the Ministry of Industries and Production Audit Report for 2019–20, chaired by Convener Dr Tariq Fazal Chaudhry.
Secretary Industries Saif Anjum briefed the committee that physical work on Pakistan Steel Mills will commence once the Engineering, Procurement, and Construction (EPC) contract with the Russian side is finalized. The EPC agreement is currently being drafted to make the project bankable and financially viable.
The Pakistan-Russia Inter-Government Commission had signed the second protocol for the steel mill’s revival in November 2025, agreeing to move forward with a formal EPC contract to restart operations. A Russian firm, Industrial Engineering LLC, recently conducted a technical audit of the mill and requested an asset valuation, which currently stands at approximately Rs. 139 million.
During discussions, the committee also addressed a delayed payment of Rs. 148.5 million related to the international court case involving Al Tuwairqi Steel. Pakistan had won the case after a dispute over the government’s failure to supply gas at a concessionary rate, and the amount is now set for recovery through the Sindh High Court following a review by a federal committee.
Regarding ownership, the former owner of Pakistan Steel Mills has divested 95 percent of his stake, while the remaining 5 percent cannot be sold under Securities and Exchange Commission of Pakistan regulations. The government holds the authority to confiscate these shares if payment obligations are not met.
This revival plan is part of a broader initiative to modernize Pakistan Steel Mills, boost industrial capacity, and strengthen the country’s steel production sector.
