Pakistan Steel Mills Revival Project Targets 2027
Pakistan and Russia have agreed to begin construction work on the Pakistan Steel Mills revival project in 2027, marking a major step toward restarting the long-idle industrial facility. The government shared the update with a parliamentary panel, signaling that preparatory work is finally moving forward after years of stalled operations.
The government pursues the revival plan through bilateral cooperation and structured agreements to ensure financial and technical viability. Officials emphasized that the project is now transitioning from policy discussions to practical execution as they define clear milestones.
- Construction targeted to begin in 2027
- Revival planned in collaboration with Russia
- Parliamentary oversight in place
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Parliamentary Review of Pakistan Steel Mills Revival Progress
Officials presented the progress update during a Public Accounts Committee subcommittee meeting. The session reviewed the Ministry of Industries and Production Audit Report for the year 2019–20 and examined developments related to the Pakistan Steel Mills revival.
Convener Dr. Tariq Fazal Chaudhry chaired the meeting and led discussions on the project’s technical and financial matters. Committee members sought clarity on timelines, agreements, and past financial issues associated with the steel mill.
- PAC subcommittee reviewed audit findings
- Meeting chaired by Dr Tariq Fazal Chaudhry
- Focus on accountability and progress
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EPC Contract as the Key Step in Pakistan Steel Mills Revival
Secretary Industries Saif Anjum informed the committee that physical construction work would begin only after the signing of the Engineering Procurement and Construction contract with the Russian side. This agreement is considered the backbone of the Pakistan Steel Mills revival process.
He explained that the EPC contract is currently being drafted with a focus on making the project bankable. Ensuring financial feasibility at this stage is intended to attract confidence and avoid delays once construction begins.
- EPC signing required before physical work
- Contract designed to ensure bankability
- Emphasis on structured execution
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Pakistan–Russia Agreements Supporting Pakistan Steel Mills Revival
The secretary recalled that in November 2025, the Pakistan-Russia Inter-Government Commission signed a second protocol related to the steel mill. This protocol confirmed both sides’ commitment to move ahead with a formal EPC agreement to restart operations.
This agreement laid the groundwork for technical assessments and contractual planning. It also reaffirmed Russia’s role as a key partner in the Pakistan Steel Mills revival initiative.
- Second protocol signed in November 2025
- Agreement reached under inter-government framework
- Formal EPC process endorsed
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Technical Audit and Asset Valuation of Pakistan Steel Mills
A Russian firm, Industrial Engineering LLC, recently visited Pakistan to conduct a technical audit of Pakistan Steel Mills. The audit assessed the condition of existing infrastructure and evaluated requirements for restarting production.
During the visit, the firm requested an asset valuation of the steel mill, which was reported to be around Rs. 139 million. This valuation is expected to guide investment decisions and contractual obligations under the revival plan.
- Technical audit conducted by Russian firm
- Infrastructure condition assessed
- Asset value estimated at Rs. 139 million
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Financial Irregularities Reviewed During Audit Discussions
The parliamentary committee also discussed an irregular payment linked to the Al Tuwairqi Steel case during the audit review. The amount involved was Rs. 148.5 million, paid to an international court in connection with arbitration proceedings.
Committee members questioned why the federal government approached the Sindh High Court for recovery after a delay of two years. The issue highlighted concerns about legal follow-up and financial oversight in past decisions.
- Rs. 148.5 million payment discussed
- Delay in recovery questioned
- Audit scrutiny applied
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Government Explanation on Al Tuwairqi Steel Case
The secretary explained that Al Tuwairqi Steel had taken Pakistan to an international court over the government’s failure to supply gas at a concessionary rate. Pakistan later won the arbitration case and claimed Rs. 148.5 million from the company.
He stated that the delay in filing a local recovery case was due to brotherly relations with Saudi Arabia. However, the matter has since been escalated for formal legal action.
- Gas supply dispute led to arbitration
- Pakistan won the international case
- Delay linked to diplomatic considerations
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Legal Action and Prime Minister’s Committee
The secretary informed the panel that the prime minister had constituted a committee to review the Al Tuwairqi Steel matter. Based on the committee’s recommendations, the federal government is now preparing to file a case in the Sindh High Court.
The legal action will focus on the execution of the international court award. Authorities believe this step is necessary to safeguard public funds and ensure accountability.
- Prime minister formed review committee
- Legal action approved
- Case to be filed in Sindh High Court
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Ownership Status and SECP Rules on Pakistan Steel Mills
The committee was also briefed on the ownership structure of the steel mill. The owner has already divested 95 percent of his stake, significantly reducing private ownership in the facility.
Under rules enforced by the Securities and Exchange Commission of Pakistan, the remaining 5 percent share cannot be sold. The government retains the authority to confiscate these shares if payment obligations are not met.
- 95 percent stake already divested
- SECP restricts sale of remaining shares
- Government holds confiscation authority
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Key Milestones in Pakistan Steel Mills Revival
The following table summarizes major milestones discussed during the parliamentary review.
| Milestone | Details |
|---|---|
| Target construction start | 2027 |
| EPC contract status | Under drafting |
| Russian technical audit | Completed |
| Asset valuation | Rs. 139 million |
These milestones outline the current direction and readiness level of the project.
Financial and Legal Overview
Another table highlights the key financial and legal matters linked to the revival process.
| Issue | Amount / Status |
|---|---|
| Al Tuwairqi case claim | Rs. 148.5 million |
| International arbitration | Pakistan won |
| Local legal action | To be filed |
This overview reflects the government’s efforts to resolve past disputes alongside revival planning.
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FAQs
When will construction of Pakistan Steel Mills begin?
Construction is targeted to start in 2027 after the EPC contract is signed.
Who is Pakistan’s partner in the steel mill revival?
Russia is collaborating with Pakistan on the revival through inter-government agreements.
What is the current value of Pakistan Steel Mills assets?
The asset valuation stands at approximately Rs. 139 million.
What was the Al Tuwairqi Steel dispute about?
The dispute involved gas supply issues and was resolved in Pakistan’s favor through international arbitration.
Can the remaining shares of the steel mill be sold?
No, SECP rules prevent the sale of the remaining 5 percent stake.
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