Pakistan, Russia set 2027 start for steel mills revival project, parliamentary panel told

Pakistan and Russia have set 2027 as the target year to begin construction under the revision and expansion project of Pakistan Steel Mills, a sub-committee of the Public Accounts Committee was informed on Thursday. The committee reviewed the Audit Report 2019–20 of the Ministry of Industries and Production. 

As per reports, briefing the committee, the industries secretary said construction work would commence after the signing of an Engineering, Procurement and Construction (EPC) contract with the Russian side.

He said that in November 2025, the Pakistan-Russia Inter-Government Commission signed a second protocol for the revival of Pakistan Steel Mills and agreed to prepare a bankable EPC contract to move the project forward.

According to the briefing, Russian firm Industrial Engineering LLC recently visited Pakistan and conducted a technical audit of the steel mills. The firm also sought an asset valuation, which currently stands at around $139 million.

The audit report also pointed to an irregular payment of Rs148.5 million linked to an international arbitration involving Al-Tuwairqi Steel. Committee members questioned the delay in filing a recovery case before the Sindh High Court.

Responding to the queries, officials said the owner of Al-Tuwairqi Steel had approached the International Court of Justice over Pakistan’s failure to provide gas at a concessionary rate. Pakistan later succeeded in the case and became entitled to recover Rs148.5 million.

Officials said the delay in pursuing the matter in local courts was due to diplomatic considerations, adding that a committee constituted by the prime minister has reviewed the issue. On its recommendation, the federal government is now preparing to file a case in the Sindh High Court against the execution of the international award.

The committee was also told that the owner of the steel mill has divested 95% of his stake in the facility. Under rules enforced by the Securities and Exchange Commission of Pakistan, the remaining 5% stake cannot be sold.

Officials added that the government retains the authority to confiscate the remaining shares if the owner fails to meet outstanding payment obligations.