The Pakistani government has decided to pursue the revival of state-owned Pakistan Metallurgical Plants (PSM), although the earlier liquidation plan was prompted by interest from several foreign investors, according to local media.
PSM has shown signs of two revival protocols with a Russian company
PSM and Russian Industrial Engineering have signed two protocols covering manufacturer's revival, modernization and restructuring, along with calculations of required capital and operating costs. An assessment of the cost of production and market feasibility was also carried out, the results of which are expected to support the final decision of the government and the recommendation to end the liquidation process. The first protocol was officially announced in July 2025.;
Russia offers two technology options
As previously reported by SteelOrbis, Russian experts proposed to restore the existing PSM facilities based on blast furnaces, the cost of which is estimated at $ 1.91 billion, or to build a new mill based on electric arc furnaces for about $ 1.05 billion. While the production of a blast furnace would require imported scrap, domestic iron ore reserves in Pakistan could be used to produce a blast furnace.
Five investors have expressed interest in PSM
In February of this year, the Ministry of Industry and Manufacturing of Pakistan announced that it had completed the development of a comprehensive strategic, financial and operational roadmap, and five companies, including Russian investors, showed great interest in the project.
PSM, originally built with the assistance of the USSR, has not been operational since 2015. The government approved its liquidation in August 2024 after previous privatization attempts failed to attract a buyer.
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