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Pakistan and Russia have signed a second protocol under the Pakistan-Russia Inter-Government Commission to advance the revival of Pakistan Steel Mills (PSM). This decision, made during the 10th IGC meeting in November 2025, includes the preparation of a bankable Engineering, Procurement, and Construction (EPC) framework and feasibility study for PSM's revival.

The Pakistani government has opted for privatization instead of operational management of PSM and will facilitate local and international steel companies in the acquisition. Russia has proposed two technical options: a blast furnace model costing $1.91 billion and a new Electric Arc Furnace facility costing $1.05 billion.

Pakistan has significant iron ore reserves but imports nearly $6 billion worth of iron and steel annually, facing a supply gap of 3.1 million tonnes. Additionally, a maritime-industrial partnership plan is in development to convert PSM into a ship recycling complex at Port Qasim.