ISLAMABAD: Pakistan and Russia have signed an agreement to revive and upgrade the long-dormant Pakistan Steel Mills, marking a significant step in industrial cooperation between the two nations.

The agreement was signed at the Pakistan Embassy in Moscow by Secretary Ministry of Industries and Production Saif Anjum and General Director of Industrial Engineering LLC from the Russian side Vadim Velichko, in the presence of Special Assistant to Prime Minister Haroon Akhtar Khan and Pakistan’s Ambassador to the Russian Federation Muhammad Khalid Jamali, stated a press release.

In May this year, Islamabad and Moscow had agreed to establish a new state-of-the-art steel mill in Karachi.

Built with Soviet assistance in the 1970s, PSM has been a financial burden on the state, lying dormant since June 2015. The government has decided to dismantle the existing facility, allocating 700 acres to the Sindh government for a new state-of-the-art steel mills, while additional land will be used for an industrial park.

“Reviving PSM with Russia’s support reflects our shared history and commitment to a stronger industrial future,” said SAPM Haroon said during the signing ceremony today. The project aims to restart and expand steel production, marking a new chapter in bilateral cooperation.

A day earlier, Russian Deputy Prime Minister Alexel Overchuk called both countries "natural allies" and strategic partners in the areas of economy and energy, while Pakistan said it viewed Russia as a stabilising factor in the international arena.

Deputy PM/Foreign Minister Senator Ishaq Dar met his Russian counterpart Sergey Lavrov on the sidelines of the 32nd Asean Regional Forum in Kuala Lumpur. “They reaffirmed their commitment to further strengthening the bilateral relations and agreed to meet again next week during the SCO Council of Ministers meeting,” said the Foreign Office in a statement.

Meanwhile, Special Assistant to the Prime Minister on Foreign Affairs Syed Tariq Fatemi was on his second visit to Moscow, while earlier being in the Russian capital in February. Russian commitment to finalise an agreement in the coming months to build a new steel mills in Karachi was among topics of discussion between the two sides on Thursday.