Sat Jul 12 10:56:24 UTC 2025: **Summary:**

Pakistan and Russia have signed an agreement to restore and modernize the Pakistan Steel Mills (PSM) project, which was originally built with Soviet assistance in 1971. The PSM had been crumbling since 2008 due to various factors, including mismanagement and the global recession, resulting in massive losses. The project aims to restart and expand steel production and signifies renewed cooperation between the two countries. Initially, China was also in the running for the contract.

**News Article:**

**Pakistan and Russia Sign Agreement to Revive Pakistan Steel Mills**

Islamabad – In a significant development signaling renewed cooperation, Pakistan and Russia have officially signed an agreement to restore and modernize the Pakistan Steel Mills (PSM) project in Karachi. The agreement, signed at the Pakistan Embassy in Moscow on Friday, aims to revitalize the steel production facility originally built with Soviet assistance in 1971.

The PSM, once a symbol of strong ties between Pakistan and Russia, had fallen into disrepair since 2008, plagued by mismanagement, excessive appointments, and the impact of the global recession. The resulting losses ballooned to PKR 200 billion by the end of May 2018. Successive Pakistani governments struggled to revive the industrial giant, ultimately leading to a bidding war between China and Russia for the restoration contract.

While the Pakistani government initially leaned towards a deal with a Chinese firm, negotiations ultimately failed to materialize. Russia, emphasizing its historical involvement in the project’s construction, asserted its expertise in reviving the struggling steel mill.

Special Assistant to Prime Minister Haroon Akhtar Khan, currently in Russia, hailed the agreement, stating, “Reviving the PSM with Russia’s support reflects our shared history and commitment to a stronger industrial future.” The project aims to restart and expand steel production, marking a new chapter in bilateral cooperation.

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