Russia Beats China to Secure Pakistan Steel Mills Revival Project 

In a significant geopolitical shift, Pakistan has chosen Russian expertise over Chinese investment to revive its ailing Pakistan Steel Mills (PSM) corporation. The two nations signed a key protocol in Moscow on Friday, marking Russia’s return to an industrial project it originally helped establish in 1971 during the Soviet era. The move sidelines China, which had been actively pursuing the contract through Pakistan Tehreek-e-Insaf (PTI) government negotiations.  

The agreement was inked by Pakistan’s Industries Secretary Saif Anjum and Russia’s Industrial Engineering LLC General Director Vadim Velichko at Pakistan’s Moscow embassy. Prime Minister’s Special Assistant Haroon Akhtar Khan emphasized the historical significance, stating the revival “reflects our shared history and commitment to a stronger industrial future.” The PSM, once Asia’s largest integrated steel complex, has been non-operational since 2015 after accumulating Rs 118.7 billion losses under successive Pakistan Peoples Party (PPP) and Pakistan Muslim League-Nawaz (PML-N) administrations.  

Analysts note this deal represents Moscow’s growing economic footprint in South Asia amid Western sanctions. For Pakistan, it offers potential relief for Karachi’s crippled industrial sector while diversifying partnerships beyond Beijing. The Russian consortium will modernize the 19,000-acre facility, though financial terms remain undisclosed. The project’s symbolic value outweighs its economic scale, reviving Cold War-era industrial cooperation between the nations.  

The decision concludes years of uncertainty over PSM’s fate. While China had been the frontrunner under former Prime Minister Imran Khan’s PTI government, negotiations stalled over terms. With Russia now securing this strategic infrastructure project, the move signals Islamabad’s willingness to balance its traditionally lopsided economic reliance on Beijing. However, skeptics question whether Moscow can succeed where Pakistani governments and Chinese investors previously failed in resuscitating this industrial white elephant.