Russia announces $500m grant for Pakistan Steel Mills

[53fd]

Excellent news, thanks for the update Omar bhai

 

[patna_ke_presley]

Excellent news, thanks for the update Omar bhai

$500 million equals about 45 Billion Pakistani rupees. But they got only 11 billion rupees. It seems Pakistan is yet to get $500 million aid from Russia.

 

[53fd]

$500 million equals about 45 Billion Pakistani rupees. But they got only 11 billion rupees. It seems Pakistan is yet to get $500 million aid from Russia.

The Rs 11bn bailout package does not have to do with the Russians, I don't think that is the suggestion that has been made. Russia is giving the $500 million grant to help increase PS Mills' production capacity. Completely different things.

 

[Vassnti]

steel mill is just saved , otherwise it will closed or privatize in few months.

A painfull step but perhaps one that needs to be taken after all the goverment hasnt done a great job of running them.

 

[Pak_Sher]

Russia has the potential to become Pakistan's good neighbhour and friend.

 

[Don Jaguar]

Wasn't it 1 billion dollar?

 

[Omar1984]

^ yes according to Express Tribune, but still $500 million is still as much appreciated.

Helping hand: Russia pledges $1 billion for steel and electricity
Published: November 9, 2011

Production capacity of PSM is expected to increase from 1.1 million tons to 1.5 million tons per annum. PHOTO: EXPRESS/FILE

Country premiers express willingness to speed up work on the proposed Free Trade Agreement. Russian Prime Minister Putin said relations between Pakistan and Russia have reached a level, where both the countries were in a position to enhance trade and strengthen ties.

ISLAMABAD: Russia has announced a grant of $500 million for reviving the financially troubled Pakistan Steel Mills and also shown willingness to finance $500 million for a 1,000 megawatt regional electricity transmission project.

Federal Secretary for Industries and Production Javed Awan told Express News that the announcement for the mill – which was established by the Russians 30 years ago in Karachi – was made when Prime Minister Yousaf Raza Gilani met with his Russian counterpart Vladimir Putin on the sidelines of the 10th heads of government meeting of the Shanghai Cooperation Organisation (SCO), a regional security grouping.

The two premiers, on the sidelines of the summit, also expressed willingness to speed up work on the proposed Free Trade Agreement and currency swap deal to boost bilateral trade and further strengthen economic ties.

Gilani in his fourth meeting with Putin had a frank and detailed discussion on relations between the two countries in a cordial atmosphere.

Russian Prime Minister Putin said relations between Pakistan and Russia have reached a level, where both the countries were in a position to enhance trade and strengthen ties.

Moreover, Gilani said that Russia was an important country and a source of stability in the region because of its geographical proximity.

The projects

The money earmarked for Pakistan Steel Mills will be spent on repair of machinery and expansion of the steel mill. As a result, its production capacity is expected to increase from 1.1 million tons to 1.5 million tons per annum.

Earlier, Putin had offered Russia’s assistance for enhancing the mill’s production capacity from one million tons to three million tons.

Putin also announced willingness to help finance $500 million for the CASA-1000, a project that envisions building a 1,000-megawatt transmission line from hydropower generators in Kyrgyzstan and Tajikistan to Afghanistan and Pakistan, which are seeking more reliable and cheaper sources of electricity.

The initial agreements call for Tajikistan and Kyrgyzstan to supply an equal amount of electricity to Pakistan, which will receive 70-75 percent of the flow, and to Afghanistan, which will receive 20-25 percent, analysts from the Central Asia-Caucasus Institute told the United Press International.

At about 1,000 miles it would be the biggest regional power supply project in Eurasia, according to United Press International. Nearly 90 percent of its estimated $2 billion cost is to be funded by international finance organizations such as the World Bank and the Islamic Development Bank, with the remaining 10 percent provided by private investors, adds United Press International.

He also offered coal gasification technology for Thar coal reserves and upgrading of Guddu and Muzaffargarh power plants to increase electricity generation to help meet the country’s growing energy needs.

Gilani appreciated Russia’s support for mega projects including CASA-1000.

Prime Minister Gilani called for opening of respective bank branches in both countries to boost trade levels. He said the top officials of their central banks can meet to work on an operational strategy in this regard.

The Russian premier said the inter-ministerial commission’s meeting will be held on December 12, which will take up all subjects of cooperation.

The leasing of Sukhoi commercial aircraft for Pakistan International Airlines was also discussed during the meeting. Putin accepted Gilani’s invitation to visit Pakistan for which dates would be worked out by the respective foreign ministries of the two countries.



Published in The Express Tribune, November 10th, 2011.

Great news below:
$1Billion (willing)
bank branches in both countries
Mega Project CASA
December 12 meeting next month and more deep discussions
Putin's visit to Pakistan unknown dates



---------- Post added at 12:39 PM ---------- Previous post was at 12:37 PM ----------

Russian Prime Minister Putin said relations between Pakistan and Russia have reached a level, where both the countries were in a position to enhance trade and strengthen ties.

Country premiers express willingness to speed up work on the proposed Free Trade Agreement.

This year is very serious business discussion between Russia and Pakistan, both leaders met more than 5 times this year.

 

[Jango]

the directors of PSM are begging for 6 billion or else hey would have to shut down by around 15 Dec.
luckily the grant has been provided.

 

[patna_ke_presley]

$500 million equals about 45 Billion Pakistani rupees. But they got only 11 billion rupees. It seems Pakistan is yet to get $500 million aid from Russia.

Anyway when that will be coming or it will be again delayed by 2-3 years just like Lahore Metro.

 

[fatman17]

Russia announces $500m grant for Pakistan Steel Mills
Published: November 9, 2011
Russia has announced a grant of $500 million for the restoration of Pakistan Steel Mills, which it had helped establish in Karachi 30 years back.
Federal Secretary for Industries and Production Javed Awan told Express News that the announcement was made when Prime Minister Yousaf Raza Gilani met his Russian counterpart Vladimir Putin on the sidelines of the 10th Heads of Government meeting of the SCO.
(Read: Pakistan, Russia to go for FTA, currency swap agreement)
The money will be spent on the expansion and repair of machinery at Pakistam Steel Mills.
Production capacity of PSM is expected to increase from 1.1 million tons to 1.5 million tons per annum.
Earlier, Putin had offered Russia’s assistance for the enhancement of the production capacity of the Pakistan Steel Mills by increasing its production from the current one million tonnes to three million tonnes.
He also offered coal gasification technology for the Thar coal and upgradation of the Guddu and Muzaffargarh power plants to increase power generation capacity to help meet country’s growing energy needs.
Russia announces $500m grant for Pakistan Steel Mills – The Express Tribune

total ****-and-bull story

 

[Adnan Faruqi]

Russia has the potential to become Pakistan's good neighbhour and friend.

And who have spoiled the chance of this friendship by following USA in cold war??

Its the Russian thing or India's help to pakistan in EU etc. are part of the screenplay of Afghan story.

 

[F.O.X]

Way too poor Capital management , You can give them $1bn and at the end of year they will still want more , Steels mills business is relatively easy to control after it established , the only hard part is to Establish it as it requires a lot of capital but once it establishes it shouldn't be in loss .

 

[Imran Khan]

or kaheen se koi country bacha ho to us se bhi bheek mang lo shayed kuch mil jay?.

 

[Jango]

Unless you privatize the national assets like these, nothing is gonna happen.

Look at the telecom industry, how much boom it has got from private investment, the media channels, and lots more. Could you imagine still watching PTV and Prime minister online?

PIA, PSM, Railways and lots more need to get privatized to get profitable.

2 Railway lines were privatized , and they are running much better than the rest of the system.

 

[53fd]

This is from the Russia Consulate website a few months ago:

Russian Prime Minister Vladimir Putin made this announcement in response to Prime Minister Syed Yusuf Raza Gilani’s address at the 10th Heads of Government meeting of SCO, at the Constantine Palace.

The Russian Premier also supported Prime Minister Gilani’s proposals for implementing trade and energy projects.

He announced financing 0.5 billion US dollars for the CASA- 1000 that would ensure power transmission from Turkmenistan Tajikistan and Kyrgyzstan to Pakistan and Afghanistan.

Putin said in practical and tangible terms, Russia wants materialization of projects including TAPI (Turkmenistan- Afghanistan-Pakistan-India) gas pipeline project and the Central Asia South Asia Electricity Trade and Transmission Project (CASA 1000).

Later, the two leaders held bilateral meeting and discussed several important issues including fight against terrorism and extremism, besides calling for the need to adopt regional approach towards dealing with major challenges.

Russian Premier Putin termed his meeting with Prime Minister Gilani “very pleasant” and expressed satisfaction over bilateral and trade ties between the two countries.

“Pakistan is important for us in trade and economy and it is an important partner in South Asia and in Islamic world,” he told Prime Minister Gilani.

Putin offered Russia’s assistance in expansion of Pakistan Steel Mills and provision of technical support for the Guddu and Muzaffargarh power plants.

He said Russia could facilitate Pakistan in the execution of Thar Coal Project.

Gilani said this was his fourth meeting with Prime Minister Putin. He mentioned that he joined other leaders at the SCO forum despite the occasion of Eid, because of the importance of the forum and also of Pakistan’s commitment to the regional issues.

He appreciated Russia’s support for mega projects including CASA 1000.

Putin supported Pakistan’s stance on war on terror and agreed to pursue the policy of counter-terrorism for ensuring regional peace.

The two Prime Ministers agreed that collective regional efforts were required to eliminate terrorism from the region to usher in peace and stability, and re-direct all energies towards economic interaction among the members of SCO.

Russia endorses full SCO membership for Pakistan