Pakistan and Russia signed an agreement on Friday to revive and expand the Pakistan Steel Mills project in Karachi — originally built in 1973 with soviet assistance — signalling both countries’ commitment to their “long-standing” industrial partnership.

In May, Pakistan and Russia had agreed to revive PSM, which ceased its operations in 2015, according to a press release by the Press Information Department (PID). In 2024, following the official closure of the mill, Sindh sought Russia’s assistance in restoring the ageing infrastructure, which had been incurring losses for decades.

The agreement to revive the defunct entity was signed at the Pakistan Embassy in Moscow by Secretary Industries and Production, Saif Anjum and General Director of Industries Engineering LLC of Russia, Vadim Velichko, according to a press release issued by the Ministry of Industries and Production.

“Reviving PSM with Russia’s support reflects our shared history and commitment to a stronger industrial future,” said Special Assistant to the Prime Minister Haroon Akhtar Khan, who was also present at the occasion along with Pakistan’s Ambassador to the Russian Federation Muhammad Khalid Jamali.

The project aims to restart and expand steel production, marking a new chapter in bilateral cooperation, as per the press release.

A day ago, Russia’s Deputy Prime Minister Alexei Overchuk said Pakistan and Russia were “natural allies” and that Moscow viewed Islamabad as an important strategic partner in the areas of economy and energy.

The two countries have remained actively engaged on diplomatic fronts recently.

On June 3, Russian Foreign Min­ister Sergey Lavrov, in a meeting with Special Assistant to the Prime Minister on Foreign Affairs Syed Tariq Fatemi, reaffirmed Russia’s desire to expand cooperation with Pakistan.

The countries are also engaged in multiple rail connectivity projects.