India's long-time ally russia has signed a major agreement with pakistan, causing tension among the indian people. The country, which has helped india in many wars, has now signed an agreement with pakistan for an important project. Why is this agreement? It has signed an agreement with russia to restart a steel plant built during the Soviet era in pakistan, which has been idle for many years. This decision has caused concern for India. There are fears that the agreement between pakistan and russia could redefine economic relations in South Asia and create new tensions in India-Russia relations. The deal was confirmed after Russian Ambassador Denis Nasruyev and Pakistani officials met to discuss the modernization of pakistan Steel Manufacturing (PSM), which was shut down in 2015 due to old machinery and poor management. Built with Soviet support in 1973, the plant produced 1.1 million tonnes of steel per year.
The new plant will be built on about 700 acres of land on the 19,000-acre site near Karachi. The plant will use Pakistan's 1.4 billion tonnes of iron ore reserves. The plant, which will be operated with modern Russian steelmaking technology, is expected to reduce Pakistan's annual steel import bill by 30%, saving it $2.6 billion in foreign exchange. Pakistan's steel mills, which suffered losses of $2.14 billion due to corruption and poor maintenance, were closed in 2015. The relaunch plan will boost Pakistan's domestic steel production and reduce its dependence on imports. In march 2025 alone, pakistan imported $324 million worth of steel scrap and unfinished products. The new plant is expected to help reduce this cost. This will help Pakistan's economic recovery and strengthen economic ties with Russia. The deal will provide economic and technological benefits to Pakistan. This unexpected cooperation from russia challenges India-Russia relations. india has seen russia as a reliable security and energy partner. But Russia's close relationship with china and growing energy and security ties in Asia are worrying India. The deal could signal a shift in Russia's priorities.
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Sowmiya Sriram

31/05/2025 01:43 PM