Pakistan and Russia have set 2027 as the target year to begin construction work on the revival and expansion of Pakistan Steel Mills, a parliamentary panel was informed.
The update was shared during a meeting of a subcommittee of the Public Accounts Committee, which reviewed the Ministry of Industries and Production Audit Report for 2019 to 20. The meeting was chaired by Convener Dr Tariq Fazal Chaudhry.
Briefing the committee, Secretary Industries Saif Anjum said physical work on Pakistan Steel Mills will begin after the signing of the Engineering Procurement and Construction contract with the Russian side.
He added that the EPC agreement is being drafted to make the project bankable.
The secretary recalled that in November 2025, the Pakistan-Russia Inter-Government Commission signed the second protocol for the revival of Pakistan Steel Mills, agreeing to move ahead with a formal EPC contract to restart operations.
He informed the committee that the Russian firm Industrial Engineering LLC recently visited Pakistan and carried out a technical audit of the steel mill. The firm also requested an asset valuation of the facility, which currently stands at around Rs. 139 million.
During the audit review, the issue of an irregular payment to the international court in the Al Tuwairqi Steel case was also discussed. The amount involved was Rs. 148.5 million. The committee questioned why the federal government approached the Sindh High Court for recovery after a delay of two years.
The secretary explained that the owner of Al Tuwairqi Steel had taken Pakistan to the international court over the government’s failure to supply gas at a concessionary rate. Pakistan later won the case and claimed Rs. 148.5 million from the company.
He said the delay in filing the case locally was due to brotherly relations with Saudi Arabia, but added that the prime minister has since constituted a committee to review the matter. On the committee’s recommendation, the federal government is now set to file a case in the Sindh High Court regarding execution of the international court award.
The secretary further informed the panel that the owner of the steel mill has already divested 95 percent of his stake. Under rules enforced by the Securities and Exchange Commission of Pakistan, the remaining 5 percent share cannot be sold.
He added that the government has the authority to confiscate the remaining shares if payment obligations are not fulfilled.
Since last one year form 47 govt., manipulating the out comes of meeting.
The fact is that WH will never allow Russian to support steel mill project.
The “PSM Revival” roadmap adopted by the Government/MOI&P, (without appointing professional Management, without hiring a professional Consultants and without settlement of payable debts liabilities more than Rs 500 billion), is leading to further financial disaster.