EDITORIAL: There has never been another project quite like Pakistan Steel Mills. Not only in scope, nor in ambition, and certainly not in the depth of public disappointment that followed its decline. That the government is now exploring a possible revival – either through restoration or a new joint venture with Russia – deserves cautious optimism, if not applause. Surely, getting it wrong again is not an option.
Talks with Moscow are reportedly serious. Two rounds of meetings have already taken place, with technical teams now assessing whether the existing infrastructure is salvageable. According to the government, if even half of the old machinery proves functional, the plan is to restore the plant with Russian help.
Otherwise, the fallback is a brand-new facility on 710 acres of reserved land near Port Qasim. Either way, it is clear that Islamabad has finally acknowledged what should have been obvious all along: that the country cannot sustainably import $2.7 billion worth of steel every year while sitting on nearly two billion tonnes of iron ore reserves.
The broader strategic case is sound. Pakistan faces a recurring trade imbalance partly because of the import-heavy nature of its industrial inputs. Domestic steel production falls short by more than three million tonnes annually. Reversing that gap – even partially – could help narrow the current account deficit while meeting long-term infrastructure needs. The choice of Port Qasim as the proposed site for the new plant is also rational, as proximity to port logistics could reduce transportation costs and improve competitiveness.
But realism is essential. This is not the first time plans have been floated to revive the steel mill or attract foreign partners. Most have withered due to lack of clarity, poor execution, or policy reversals. What sets this latest initiative apart, if anything, is the backdrop: a fragile industrial sector, growing external account stress, and a government that now seems more open to structural reform. That makes this moment an opportunity – but only if handled with precision.
The scale of the project demands transparency and professionalism at every step. Any partnership – whether with Russian state entities or private consortiums – must be negotiated on commercial terms, free from rent-seeking and political interference. If the existing mill is to be restored, the assessment of machinery and infrastructure must be independently verified. If a new plant is to be constructed, the financing model and ownership structure must be made public before ground is broken.
Equally important is the question of downstream impact. Steel is a foundational input – used in housing, transport, energy, and defence. A functioning steel mill can create tens of thousands of direct and indirect jobs, revive dormant industries, and catalyse regional development. But only if the plant operates at capacity, maintains quality standards, and is shielded from the sort of bureaucratic rot that plagued the original project.
The political economy around this revival cannot be ignored either. The priority should be a technically sound, economically viable, and operationally autonomous industrial platform—not a white elephant wrapped in nationalist slogans.
To that end, broader reforms within the industrial policy space are welcome. The SAPM on Industry has mentioned amendments to the SECP law and the creation of a bankruptcy framework to help closed industrial units access bank finance. These are important steps, but they must go hand in hand with enforcement safeguards to avoid regulatory capture. If agencies like NAB or FIA are to be kept at arm’s length from business disputes, then the SECP must step up its oversight function – and be held accountable for it.
There is no denying that Pakistan needs a strong, sustainable, and self-reliant industrial backbone. Restoring the Pakistan Steel Mills – whether in name or in spirit – could be the flagship project that sets that direction. But only if it’s done right.
Copyright Business Recorder, 2025
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