ISLAMABAD (Feb 22) Pakistan and Russia have set a 2027 start date for the construction phase of the Pakistan Steel Mills revision and expansion project.
Work on PSM will commence upon signing the EPC (Engineering, Procurement, Construction) contract with Russian side.
In November 2025, the joint Pakistan-Russia Inter-Government Commission (IGC) had signed the second protocol for the revival of the PSM and agreed to draft a bankable EPC contract to proceed further.
The Russian firm Industrial Engineering LLC visited Pakistan and conducted a technical audit of the PSM and asked for asset valuation of the PSM. Current asset valuation of the Mills is around $139 million.
Russia worked out two options for the revival of the PSM, one based on blast furnace model with an estimated cost of USD 1.91 billion, and the other based on Electric Arc Furnace (EAF) technology costing USD 1.05 billion. They said the first option in monetary terms is expensive, while after the completion worldwide, it has proven more economical, as compared to the EAF model.
According to the official, Russian authorities have forwarded the proposals to the Ministry of Industries and Production on the subject, saying that revival of the current mill on blast furnace model will be a one-time cost USD 1.91 billion, while constructing a new mill based on Electric arc furnace (EAF) technology will cost USD 1 billion, for which scrap will be imported. ends
