Revitalizing Pakistan Steel Mills by 2027
Pakistan Steel Mills Rebuild is officially on track, with Pakistan and Russia targeting 2027 to commence construction. This significant update came during a parliamentary panel meeting. Consequently, the long-awaited revival and expansion of this critical industrial asset are moving closer to realization. This strategic partnership aims to restore the mill’s operational capacity and boost Pakistan’s industrial output.
The Ministry of Industries and Production Audit Report for 2019-20 was under review by a subcommittee of the Public Accounts Committee. Dr. Tariq Fazal Chaudhry chaired this important session, where key details about the project’s progress were shared.
Key Milestones for the Steel Mill Revival
Secretary Industries, Saif Anjum, briefed the committee on the project’s future. He confirmed that physical work on the Pakistan Steel Mills Rebuild will start once the Engineering, Procurement, and Construction (EPC) contract is formally signed with the Russian partners. Furthermore, the EPC agreement is currently being drafted to ensure the project’s bankability and secure necessary financing.
Previously, in November 2025, the Pakistan-Russia Inter-Government Commission solidified their commitment. They signed the second protocol specifically for the Pakistan Steel Mills Rebuild, agreeing to finalize a formal EPC contract. This commitment is crucial for restarting the mill’s operations effectively.
Recently, the Russian firm Industrial Engineering LLC conducted a technical audit of the steel mill. They also requested an asset valuation of the facility, which currently stands at approximately Rs. 139 million. This step is vital for transparency and financial planning.
Addressing Past Financial Discrepancies and Future Prospects
During the audit review, an irregular payment of Rs. 148.5 million to an international court in the Al Tuwairqi Steel case emerged as a key discussion point. The committee questioned the federal government’s two-year delay in approaching the Sindh High Court for recovery. Subsequently, officials provided explanations for this timeline.
The Secretary explained that the owner of Al Tuwairqi Steel had pursued legal action against Pakistan internationally. This action stemmed from the government’s failure to supply gas at a concessionary rate. Fortunately, Pakistan won the case, leading to a claim of Rs. 148.5 million from the company. The initial delay in local legal proceedings was attributed to maintaining cordial relations with Saudi Arabia.
However, the Prime Minister has since established a committee to re-evaluate the matter. Based on this committee’s recommendations, the federal government plans to file a case in the Sindh High Court. This action aims to execute the international court’s award and ensure recovery. Ultimately, this demonstrates a renewed focus on accountability.
Ownership and Investment Considerations
The owner of the steel mill has already divested 95 percent of his stake. According to rules enforced by the Securities and Exchange Commission of Pakistan (SECP), the remaining 5 percent share cannot be sold. Consequently, the government retains a strategic interest in the facility.
Furthermore, the government holds the authority to confiscate the remaining shares if payment obligations are not fulfilled. This provides a mechanism to protect national assets. This entire initiative underscores Pakistan’s commitment to industrial growth and international collaboration.
