May 30, 2025 – Russia Pakistan Deal: According to Arab News, Russia has signed a landmark $2.6 billion agreement with Pakistan to revive the long-defunct Soviet-era Pakistan Steel Mills (PSM) in Karachi. This move has not only caught global attention but also rattled India. Moreover, Moscow’s pivot highlights a major shift in regional dynamics and significantly boosts Islamabad’s economic and strategic standing.

Russia Strengthens Economic Ties with Pakistan

Russian Envoy Denis Nazruyev and senior Pakistani officials confirmed the mega-deal earlier this week. Under the agreement, the revived steel project will occupy a 700-acre portion of the 19,000-acre PSM complex. Originally built in 1973 with Soviet assistance, the mill once produced 1.1 million tons of steel annually. Furthermore, the revitalization plan will utilize Pakistan’s estimated 1.4 billion tons of untapped iron ore reserves. As a result, officials anticipate a 30% reduction in steel imports, leading to an annual saving of $2.6 billion for the country.

Putin’s Pivot Stirs Unease in New Delhi

India, long considered a close defense and trade partner of Russia, has expressed growing concern over the development. Experts in New Delhi warn that this economic collaboration could, in the long term, open doors to deeper military and technological cooperation between Moscow and Islamabad. Consequently, Putin’s decision to deepen ties with Pakistan—India’s traditional rival—has triggered unease across South Block, particularly as India continues to pursue diplomatic engagement with Moscow.

A New Chapter in Pakistan’s Foreign Policy

This Russia Pakistan Deal marks a significant milestone in Pakistan’s evolving foreign policy. In addition to growing Chinese investment, this deal reflects increasing trust between Islamabad and Moscow. Analysts believe these trust-building efforts could lead to a more resilient and diversified economic landscape for Pakistan. Ultimately, as Russia moves closer to Pakistan, the strategic balance of power in South Asia may undergo a notable transformation.