Pakistan-based steel producer Pak Steel is considering an investment project to establish steel production in Uzbekistan, targeting rebar and other steel products, according to Uzbekistan's Dunyo news agency.
The potential project was discussed during a meeting between Uzbekistan's ambassador to Pakistan Alisher Tukhtaev and Pak Steel director Hassan Farid. The company is assessing Uzbekistan as a possible location for new production facilities, with the availability of energy resources, industrial infrastructure and investment incentives among the factors under consideration.
High energy costs in Pakistan support search for new production base
According to Farid, high electricity costs in Pakistan are negatively affecting the company's production costs and product competitiveness. Against this backdrop, Pak Steel is evaluating Uzbekistan, where it sees more accessible energy resources, as a potential production base.
The company is also assessing infrastructure available in Uzbekistan's industrial zones as well as incentives and preferences provided to investors. No planned investment amount, production capacity, location or timetable for the proposed steel plant has been disclosed.
Pak Steel produces steel products including rebar, plain and deformed steel bars, channels and steel structures, which are used in road and metro infrastructure, residential and administrative buildings and industrial projects in Pakistan.
Roadmap for further cooperation to be prepared
Following the discussions, the two sides agreed to organize online meetings with relevant Uzbek government bodies and prepare a roadmap for further cooperation. A visit by Pak Steel management to Uzbekistan is also expected at a later stage.
In addition to the proposed steel investment, Pak Steel expressed its readiness to participate in projects involving the construction of housing, hotels, dams and transport infrastructure facilities in Uzbekistan.
