Pakistan and Russia have set the year 2027 as the starting point for the construction phase of the Pakistan Steel Mills rehabilitation and expansion project. According to sources, this information was shared on Thursday with a parliamentary panel.
The meeting of the Public Accounts Committee’s subcommittee was chaired by Dr. Tariq Fazal Chaudhry, during which the audit report for 2019-20 of the Ministry of Industries and Production was reviewed.
Updating the committee on the current status of Pakistan Steel Mills, Secretary of Industries and Production Saif Anjum stated that actual work on the steel mills would commence after signing an EPC (Engineering, Procurement, and Construction) agreement with the Russian party. He noted that in November 2025, a joint intergovernmental commission between Pakistan and Russia signed a second protocol for the rehabilitation of Pakistan Steel Mills, under which both sides agreed to prepare a bankable EPC agreement to move the project forward.
According to the Secretary, the Russian company Industrial Engineering LLC visited Pakistan, conducted a technical audit of Pakistan Steel Mills, and requested valuation of its assets. He said the current asset value of the steel mills is approximately $139 million. The audit report also highlighted that an irregular payment of PKR 148.5 million had been made in the case of Al-Tuwairqi Steel.
The committee convener questioned why the federal government filed a case in the Sindh High Court two years later to recover this amount. The Secretary explained that the owner of Al-Tuwairqi Steel had filed a case against Pakistan in the International Court of Justice for breaching a discounted gas supply agreement, but the federal government won the case and claimed recovery of PKR 148.5 million from Al-Tuwairqi Steel.
Regarding the delay in filing the local court case, the Secretary stated that due to fraternal relations with Saudi Arabia, the matter was not pursued immediately. However, the Prime Minister had established a committee to investigate the issue. Based on the committee’s recommendations, the federal government is now preparing to file a case in the Sindh High Court to challenge the implementation of the International Court’s decision.
Sources said the Secretary further reported that the owner of the steel mill has sold 95 percent of his shares in the institution, and under the rules enforced by the Securities and Exchange Commission of Pakistan (SECP), he is not authorized to sell the remaining 5 percent. He added that if the owner fails to fulfill his payment obligations, the government has the authority to seize those shares.
