ISLAMABAD: Pakistan and Russia are aiming to begin construction work on the Pakistan Steel Mills revival and expansion project in 2027, according to officials who briefed a parliamentary committee in Islamabad.
The update was shared during a meeting of a sub-committee of the Public Accounts Committee (PAC) as it examined the Audit Report 2019–20 of the Ministry of Industries and Production.
The Secretary of Industries and Production told the committee that physical work on the project would start after the conclusion of an Engineering, Procurement and Construction (EPC) agreement with the Russian side. He said preparatory work is currently focused on finalising a bankable EPC structure.
Officials said the Pakistan-Russia Inter-Governmental Commission signed a follow-up protocol in November 2025 to advance the revival process, building on earlier cooperation between the two countries.
As part of the preparatory phase, a Russian company, Industrial Engineering LLC, recently carried out a technical assessment of Pakistan Steel Mills. The firm also requested an updated valuation of the facility’s assets, which has been estimated at approximately $139 million.
The committee was further briefed on financial irregularities highlighted in the audit, including a payment of Rs148.5 million connected to an international arbitration involving Al-Tuwairqi Steel. Committee members sought explanations for the delay in initiating recovery proceedings in domestic courts.
In response, officials said Pakistan had prevailed in the international arbitration related to the dispute and is entitled to recover the amount. They explained that earlier delays were linked to diplomatic sensitivities, adding that the issue has since been reviewed by a committee formed by the prime minister.
Following the review, officials said the federal government is preparing to pursue the matter before the Sindh High Court to enforce recovery under local legal procedures.
The committee was also informed that the former owner of the steel facility has already sold 95 per cent of his shareholding. Under regulations enforced by the Securities and Exchange Commission of Pakistan, the remaining five per cent stake is non-transferable. Government representatives said the state retains legal authority to take control of the remaining shares in the event of non-compliance with financial requirements.
