The Pakistani government has decided to pursue the revival of state-owned Pakistan Steel Mills (PSM), reversing its earlier liquidation plan amid interest from several international investors, according to local media reports.
PSM signs two revival protocols with Russian company
PSM and Russia-based Industrial Engineering LLC have signed two protocols covering the producer's revival, modernization and restructuring, along with calculations of the required capital and operating expenditure. A production cost and market feasibility assessment has also been conducted, with the results expected to support the government's final decision and a recommendation to halt the liquidation process. The first protocol was officially announced in July 2025.
Russia proposes two technology options
As SteelOrbis previously reported, Russian experts proposed restoring PSM's existing blast furnace-based facilities at an estimated cost of $1.91 billion or constructing a new electric arc furnace-based mill for approximately $1.05 billion. While the latter would require imported scrap, the blast furnace route could utilize Pakistan's domestic iron ore resources.
Five investors express interest in PSM
In February this year, Pakistan's Ministry of Industries and Production stated that a comprehensive strategic, financial and operational roadmap had been finalized, while five companies, including Russian investors, had expressed strong interest in the project.
PSM, originally constructed with Soviet assistance, has remained nonoperational since 2015. The government approved its liquidation in August 2024 after previous privatization attempts failed to attract a buyer.
