ISLAMABAD: Pakistan and Russia have set a 2027 start date for the construction phase of the Pakistan Steel Mills revision and expansion project, a parliamentary panel was told on Thursday.
The Public Accounts Committee’s sub-committee met under its Convener Dr Tariq Fazal Chaudhry which examined Ministry of Industries and Production’s Audit Report 2019-20.
While briefing the convener committee on the latest updates of PSM, Secretary Industries Saif Anjum said work on PSM will commence upon signing the EPC (Engineering, Procurement and Construction) contract with Russian side.
READ MORE: Pakistan Steel Mills revival: Pakistan-Russia commission signs second protocol
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 secretary added.
He further said that the Russian firm Industrial Engineering LLC visited Pakistan and conducted a technical audit of the PSM and asked for asset valuation of the PSM, added that the current asset valuation of the Mills is around $139 million.
The audit further pointed out irregular payment to International Court for Al-Tuwairqi Steel of Rs 148.5 million. The convener questioned that federal government filed a court case in Sindh High Court after a lapse of 2 years for recovery.
Secretary replied that the owner of Al-Tuwairqi Steel filed a case in International Court of Justice against Pakistan for its failure to honour the contract for provision of gas to the steel mill at concessionary rate, however, the federal government won the case and claimed Rs 148.5 million from Al-Tuwariqi.
Responding to delay in filing the case in local court, the secretary replied that because of brotherly relationship with Saudi Arabia, the case was not pursued. However, he said Prime Minister constituted a committee to look into the matter.
On the recommendation of the committee, federal government is going to file a case in the Singh High Court against execution of the award by international court.
The secretary further said that the owner of the steel mill has divested a 95% stake in the facility. Under regulations enforced by the Securities and Exchange Commission of Pakistan (SECP), the owner is prohibited from selling the remaining 5% share.
Furthermore, the government retains the authority to confiscate these shares should the owner fail to meet his payment obligations, he added.
Copyright Business Recorder, 2026
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