Pakistan, Russia in talks for new steel mills

ISLAMABAD: The government is in talks with Russia to establish a modern steel mills at the site of the defunct Pakistan Steel Mills (PSM), with the minister for industries and production set to visit Moscow next week.

A Russian delegation will arrive in Pakistan on Friday to discuss trade and investment, Minister Rana Tanveer Hussain and Secretary Saif Anjum confirmed to The News on Wednesday.

Built with Soviet assistance in the 1970s, PSM has been a financial burden on the state, lying dormant since June 2015. The government has decided to dismantle the existing facility, allocating 700 acres to the Sindh government for a new state-of-the-art steel mills, while additional land will be used for an industrial park.

Meanwhile, the government is also moving forward with sweeping reforms in the industrial sector.

Earlier, Rana Tanveer Hussain told the National Assembly’s Standing Committee on Industries that the cash-strapped Utility Stores Corporation (USC) could either be privatised or restructured through a public-private partnership. He warned that daily wage workers would be dismissed due to financial strain, though permanent employees would retain their jobs.

His remarks sparked criticism from a Pakistan People’s Party (PPP) lawmaker, who questioned the decision to lay off workers despite PPP’s role in the ruling coalition.

Under a broader rightsizing policy, the government plans to shut down 20 of the 29 institutions currently operating under the Ministry of Industries and Production.