Pakistan is in negotiations with Russia to establish a modern steel mill at the site of the defunct Pakistan Steel Mills (PSM), with Minister for Industries and Production Rana Tanveer Hussain set to visit Moscow next week for further discussions.
A Russian delegation is scheduled to arrive in Pakistan on Friday to explore trade and investment opportunities, the minister and Secretary Saif Anjum confirmed. The talks are part of broader efforts to revive the steel sector and attract foreign investment.
PSM, constructed with Soviet assistance in the 1970s, has remained inactive since June 2015, becoming a financial burden on the state. The government has decided to dismantle the existing facility and allocate 700 acres to the Sindh government for a state-of-the-art steel mill, while the remaining land will be repurposed for an industrial park.
At the same time, the government is pushing forward with major reforms in the industrial sector. Addressing the National Assembly’s Standing Committee on Industries, Minister Hussain indicated that the financially struggling Utility Stores Corporation (USC) could either be privatized or restructured through a public-private partnership. He warned that daily wage workers would be laid off due to financial constraints, though permanent employees would retain their jobs.
His comments drew criticism from a Pakistan People’s Party (PPP) lawmaker, who questioned the decision to reduce the workforce despite PPP’s role in the ruling coalition.
As part of a broader rightsizing policy, the government also plans to shut down 20 of the 29 institutions currently operating under the Ministry of Industries and Production.
