Pakistan and Russia have recently made an important agreement to revive the Pakistan Steel Mills (PSM), which has been non-functional for many years. This is a major breakthrough for Pakistan’s economy and a step forward in strengthening economic relations between the two countries. The Pakistan Steel Mills, located in Karachi, was once a key player in Pakistan’s industrial development, but it faced many problems over the years and eventually stopped working.

The idea of building a steel mill in Pakistan started in the 1950s, but real work began in 1973 when Pakistan and the Soviet Union (now Russia) signed an agreement to build the mill. The foundation was laid by Prime Minister Zulfikar Ali Bhutto, and the project was built with full support from the Soviet Union. The mill started working in 1985, with a capacity to produce 1.1 million tonnes of steel per year. During its best years, it provided steel for construction projects, supported other industries, and gave jobs to more than 20,000 people.

Unfortunately, over time, the mill suffered from bad management, political interference, and lack of upgrades. In 2006, the government tried to privatize it, but the Supreme Court stopped the deal because it lacked transparency. By 2015, the mill stopped production completely, and thousands of workers lost their jobs. Since then, the government has been spending money on salaries and maintenance without any output from the mill.

Now, in July 2025, Pakistan and Russia have agreed to bring the mill back to life. Russia will offer technical help, new machinery, and even financial investment to restart the steel mill. They will work together through a Public-Private Partnership (PPP) to make sure everything is done in a transparent and efficient way. Russian experts may help run the mill in the beginning, and Pakistani workers will be trained in the latest steel production techniques.

Reviving the Pakistan Steel Mills will bring many benefits. It will create jobs, support local industries, and save foreign currency by reducing the need to import steel. It will also help build stronger ties with Russia, which is already showing interest in more trade and investment in Pakistan.

This could also serve as an example for reviving other loss-making public organizations in the country. With modern technology, good planning, and foreign expertise, the steel mill could once again become a symbol of national progress. The government promises to keep the process transparent and ensure that past mistakes are not repeated.

In short, the Pakistan Steel Mills, once the pride of the nation, is now getting a second chance. With help from Russia, Pakistan has the opportunity to rebuild a key part of its economy and provide a better future for thousands of people.