Pakistan’s first Chinese steel mill commences production

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Xiaonian Wu, chairman of the Shanxi Jianbang group, briefs officials about the Pak China Steel’s operations. (AN photo)
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Iron ore extracted from mines in the Balochistan province is stocked at the site of the Pak China Steel company for processing. (AN photo)
Updated 15 December 2018
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Pakistan’s first Chinese steel mill commences production

  • Company worth $12mn was established in March
  • Coal-fired blast furnace is the pioneer facility in country’s private sector

KARACHI: With an aim to cater to the infrastructure needs of the China Pakistan Economic Corridor (CPEC), the country’s first Chinese steel mill commenced its operations in Karachi on Saturday.

The Pak China Steel (PCS) company, a joint venture between Pakistan and China’s Jiangbang Group,  was established in March this year with an investment of $12 million to cater to the demand for crude iron by local industries. “The installed capacity is 8,000 ton, per months of pig iron and liquid pig iron which would be further expanded,” Xiaonian Wu, Chairman of Shanxi Jianbang Group, said during the inaugural ceremony of the PCS company at Port Bin Qasim on Saturday.

The coal-fired blast furnace is the first facility in the private sector of the country which utilizes the indigenous iron ore extracted from the mines of Balochistan. “Raw materials such as iron ore and limestone is local while metallurgical coke is imported. The facility will be an incredible chapter in the industry of Pakistan,” Wu said.

“At present, the facility is producing 4,000 to 5,000 metric tons per month which would be gradually increased,” he added.

The facility is being run by officials from Pakistan who will be supported by technical experts from China. “PCS has provided employment opportunities to 200 locals while 60 Chinese nationals are providing technical support,” Wu said.

Currently, the demand for Pakistan’s crude iron is being met through imports and shipbreaking industry. “We are looking at supplying pig iron to countries with local material of high quality,” Mustafa Dawood, a local partner of PCS, said.

Last year, Pakistan imported base metal including iron and steel worth $4.78 billion to meet the domestic needs. “We want to completely substitute the import of iron ore with local production and utilization of iron products. This is the first collaboration of Pakistan and China in the steel sector,” Li Felix, Director of PCS said.  

In the next phase, the PCS management plans to export pig iron to China, Thailand, and a few other countries.

Wu said that the CPEC has the potential to become the real and potential game-changer in the region and beyond promoting quality and competitiveness worldwide. “We are expecting to meet the growing demand of steel coming from CPEC projects,” he added.

According to the State Bank of Pakistan, Pakistan produces around six million metric tons of steel per year. This includes raw products (iron ore and scrap), flat products (sheets and plates, used in the automotive sector); and long products (steel bars, wire rods, and rails and structures used in infrastructure development and tubes and pipes).

However, the per capita steel consumption in Pakistan is very low at 23.5 kilograms, against 58.6 kilograms in India, as well as the Asian average of 261.3 kilograms and the global average of 216.9 kilograms.


Pakistan downplays pro-Imran Khan comments by Trump special envoy nominee

Updated 5 sec ago
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Pakistan downplays pro-Imran Khan comments by Trump special envoy nominee

  • Grenell on Tuesday urged Biden administration to push Pakistan for Khan’s release from prison
  • Pakistan foreign office refuses to comment on Grenell’s remarks made in “individual capacity”

ISLAMABAD: Pakistan’s foreign office spokesperson on Thursday downplayed comments by US President-elect Donald Trump’s special envoy nominee, Richard Grenell, who this week called for ex-PM Imran Khan’s release from prison, describing them as statements made in his “individual capacity.”
Speaking to Newsmax TV, an American conservative television channel on Tuesday, Grenell called on the Joe Biden government to use its last days in power to push for Khan’s release from prison so he could run for office in Pakistan. 
Grenell has attracted attention in Pakistan since last month when he began posting on X about Khan. On Nov. 26, Grenell posted, “Release Imran Khan!” as the jailed leader’s supporters staged protests in Islamabad demanding his release. In a follow-up post, he said, “Watch Pakistan. Their Trump-like leader is in prison on phony charges … Stop the political prosecutions around the world!” Grenell has since continued to express support for Khan.
Khan has been in jail since August 2023 on charges he claims are fabricated by the government and the powerful military to prevent him from participating in politics. Both the government and the military deny the allegations. 
“As far as any individual capacity, anyone making statements in their individual capacity, we would not like to comment on that,” Foreign Office spokesperson Mumtaz Zahra Baloch said during a weekly press briefing in response to Grenell’s statement. 
“We continue to engage with officials and public personalities in the US and continue to discuss with them issues of mutual interest and mutual concern.”
She highlighted how Pakistan has repeatedly reiterated its desire to have “positive and constructive” relations with the US based on “mutual respect, mutual interest, and non-interference” in their respective domestic affairs.
Pakistan’s Defense Minister Khawaja Asif also downplayed Grenell’s recent posts supporting Khan this month, saying the government did not expect the remarks to have any “repercussions” once Trump came to power in January 2025. 
Khan, ousted from office after a parliamentary vote in April 2022, has since led an unprecedented campaign of defiance against Pakistan’s powerful military. The military is widely believed to be aligned with Prime Minister Shehbaz Sharif’s coalition government, but it denies interfering in politics.
Despite his imprisonment, Khan remains highly popular. His Pakistan Tehreek-e-Insaf (PTI) party rallies draw thousands nationwide, and the party has held several rallies to build public pressure for his release.
Last month, four soldiers and 12 PTI supporters were killed during a protest in Islamabad after security forces raided a demonstration in the heavily policed Red Zone, home to key government and diplomatic buildings, as well as the Supreme Court.
Khan’s party was also banned from Pakistan’s general election on February 8, 2024, but PTI candidates ran as independents. 
Despite the ban and Khan’s convictions for charges ranging from corruption to leaking state secrets, millions of his supporters voted for him. Independent candidates from his party secured the most seats, though not enough to form a government. Khan remains ineligible for office while in prison.


Pakistan military sentences 60 civilians to jail of 2-10 years

Updated 16 min 6 sec ago
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Pakistan military sentences 60 civilians to jail of 2-10 years

  • Military sentenced 25 civilians to prison time ranging from two to 10 years on Dec. 21
  • Khan supporters charged with attacking military installations during protests on May 9, 2023

KARACHI: A Pakistani military court has sentenced 60 civilians to jail time ranging from 2 to 10 years in connection with riots in which supporters of jailed ex-premier Imran Khan were accused of attacking army facilities, the military said on Thursday.
The announcement comes days after the military said it had sentenced 25 people to prison for participating in violent protests on May 9, 2023, when hundreds of alleged Khan supporters stormed military and government installations and even torched a top commander’s house. The riots followed the former premier’s brief arrest by paramilitary soldiers in a land bribe case that day.
The military initiated army court trials of at least 103 people accused of involvement in the violence and there have been widespread reports it also plans to prosecute Khan under the Pakistan Army Act on charges of treason and attempting to incite a mutiny in the military.
A list of the 60 convicts announced on Thursday included two retired military officers, Brig. (retired) Javed Akram and Captain (retired) Viqas Ahmed Mohsin, and Khan’s nephew Hassan Khan Niazi.
“The trial of 9th May accused under military custody has hereby been concluded under the relevant laws,” the Inter-Services Public Relations, the military’s media wing, said. “All convicts retain the right to appeal and other legal recourses, as guaranteed by the Constitution and law.”
The military said the government and army remained steadfast in “their commitment to upholding justice and ensuring that the inviolable writ of the state is maintained.”
The federal government’s spokesman Attaullah Tarar said the verdicts showed that “rule of law has prevailed.”
Khan’s Pakistan Tehreek-e-Insaf party also reacted to the development, saying the Dec. 21 verdicts by military courts against 25 civilians had been met by concern by the US, UK and the EU. 
“Despite concerns shown by the US State Department, UK Government and European Union, they went ahead with convicting more civilians, in violation of almost the entire operative part of International Covenant on Civil & Political Rights to which Pakistan is a party,” the party said in a statement. 
The verdicts come as the Pakistani federal government this week opened talks with the PTI in a bid to bring down political temperatures. 
Pakistan has remained gripped by political unrest and uncertainty since Khan’s ouster from power through a parliamentary no-confidence vote in April 2022. He blames his removal from the PM’s office on his political rivals led by Prime Minister Shehbaz Sharif and the all-powerful military. Both reject the charge. 
Though Khan was released days after his brief arrest on May 9 last year, he was rearrested in August and has since been in jail in a slew of cases he says are politically motivated.


Pakistan says prioritizes diplomacy, day after airstrikes in Afghanistan kill 46

Updated 27 min 25 sec ago
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Pakistan says prioritizes diplomacy, day after airstrikes in Afghanistan kill 46

  • Pakistan army and government have not yet officially confirmed the airstrikes
  • Media reports say Pakistan had hit militant hideouts, killing several insurgents

ISLAMABAD: Foreign Office Spokesperson Mumtaz Zahra Baloch said on Thursday Islamabad prioritized diplomacy with neighboring Afghanistan, a day after the country's Afghan Taliban rulers said at least 46 people including women and children had been killed in Pakistani airstrikes in the eastern border province of Paktika.
The Pakistan army and government have not yet officially confirmed the airstrikes, which the Afghan Taliban have condemned, saying they had targeted "mostly civilians."
Media widely reported on Wednesday that Pakistani security forces targeted multiple suspected hideouts of the Pakistani Taliban, also known as the Tehreek-e-Taliban Pakistan (TTP), dismantling a training facility and killing several insurgents. 
At a weekly press briefing on Thursday, Baloch declined to confirm Tuesday’s airstrikes but said Pakistan was committed to the security of its people, and its security and law enforcement personnel conducted operations based on “concrete intelligence” against terror groups operating in the border areas.
“I would like to add here that Pakistan believes in dialogue and diplomacy.  We have always prioritized diplomacy in our relations with Afghanistan,” Baloch said. “Despite the presence of terror hideouts and sanctuaries, and the consistent threat they pose to Pakistan, we have always opted for diplomacy.”
Baloch reiterated Pakistan's demand that Afghanistan prevent the use of its territory for terror attacks against Pakistan, calling on the neighbor to work with Islamabad to combat the threat posed by groups like the TTP.
“And any issues that either side has with regards to border management, trade and transit trade, security, terrorism, these issues remain high on our bilateral agenda,” Baloch added.
Border tensions between the two countries have escalated since the Taliban government seized power in 2021, with Pakistan battling a resurgence of militant violence in its western border regions.
Islamabad has accused Kabul’s Taliban authorities of harboring militant fighters, allowing them to strike on Pakistani soil with impunity. Kabul has denied the allegations.
The banned TTP group said in a statement on Wednesday the strikes had hit “the homes of defenseless refugees” on Tuesday evening, killing at least 50 civilians, including 27 women and children.
Deadly air strikes by Pakistan’s military in the border regions of Afghanistan in March that the Taliban authorities said killed eight civilians had prompted skirmishes on the frontier.


China, Pakistan unveil sculptures of founding fathers, highlighting strategic ties

Updated 26 December 2024
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China, Pakistan unveil sculptures of founding fathers, highlighting strategic ties

  • The statues unveiled in Pakistan’s federal capital have been created by a veteran Chinese sculptor
  • PM Sharif says the event showed the depth of Pakistan-China ties based on trust and cooperation

ISLAMABAD: A Chinese delegation visiting Pakistan on Thursday unveiled sculptures of the founding fathers of both nations, Chairman Mao Zedong of China and Quaid-e-Azam Muhammad Ali Jinnah of Pakistan, in a ceremony, with Prime Minister Shehbaz Sharif hailing the event as a testament to the historic bonds between the two nations.

The event honored the pivotal roles of Mao and Jinnah in shaping the destinies of their respective nations. Mao led China through a transformative revolution, laying the foundation for its rise as a global power, while Jinnah, revered as

Pakistan’s father of the nation, spearheaded the movement for the creation of an independent homeland for Muslims in South Asia.

Last year, Pakistan’s diplomatic mission in Beijing unveiled similar statues of the two leaders during a ceremony attended by high-ranking Chinese officials and dignitaries.

The sculptures unveiled in Pakistan’s federal capital today were created by veteran Chinese artist Yuan Xikun, who expressed his pride in contributing to this historic project.

“It’s a great honor for me to be here at the Prime Minister’s Office for the unveiling ceremony of the sculptures of Pakistan’s father of the nation Quaid-e-Azam Muhammad Ali Jinnah and the brave leader of China, Chairman Mao Zedong, which I had been invited to create,” Yuan said.

“It’s the best commemoration of the 148th anniversary of the birth of Jinnah and the 131st anniversary of the birth of Mao Zedong,” he added.

Pakistan marked Jinnah’s birth anniversary, which falls on December 25, just a day ago, while China is commemorating Mao’s birthday today, December 26.

The Chinese sculptor said the inauguration of the statues reaffirmed the common admiration and respect that the two nations have for their leaders.

He also maintained the ceremony symbolized the brotherhood between the two countries.

Prime Minister Sharif, who was present at the gathering, underscored the depth of Pakistan-China relations, describing them as a model of mutual respect, trust and cooperation.

“The historic bonds between Pakistan and China forged over decades are a testament to our shared values, mutual respect, trust, and cooperation,” he said.

Highlighting the multifaceted collaboration between the two nations, Sharif praised initiatives like the China-Pakistan Economic Corridor (CPEC), cultural exchanges and educational programs.

“Hundreds of young Pakistani students visiting Chinese universities and learning Mandarin are building a bridge between Beijing and Islamabad,” he added, adding the first batch of Pakistani agriculture graduates would visit China early next year to gain expertise in modern farming techniques.


Pakistan’s Dewan Farooque Motors to launch Chinese electric trucks in 2025

Updated 26 December 2024
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Pakistan’s Dewan Farooque Motors to launch Chinese electric trucks in 2025

  • Completely Built Units of the ‘Kama’ have already arrived in Pakistan for local assembly
  • New Chinese electric truck leverages robust structure of diesel-powered Shehzore model

KARACHI: Dewan Farooque Motors Limited, a Pakistani automobile importer and manufacturer based in Karachi, will assemble Chinese electric trucks locally, with the vehicle’s launch scheduled for the first quarter of next year, a project director at the company said. 

Pakistan approved an ambitious National Electric Vehicles Policy (NEVP) in 2019 with the goal that electric vehicles would comprise 30 percent of all passenger vehicles and heavy-duty truck sales by 2030. It has set an even more ambitious target of electric vehicles comprising 90 percent of all vehicle sales by 2040.

“The ‘Kama,’ our new Chinese electric truck, leverages the robust structure of our diesel-powered Shehzore model. For Test trial, CBU (completely built) units have already arrived in Pakistan for further proceeding to local assembly, with a launch planned within first quarter of 2025,” Kashif Riaz, Director Projects at Dewan Farooque Motors, told Arab News. 

“Traditionally, commercial trucks have a voracious appetite for fuel. Electrifying them dramatically reduces operating costs. This light commercial vehicle has a 300 Kilometer e-range and supports rapid charging.”

Riaz said the widespread adoption of electric vehicles in Pakistan could bring international acclaim and even secure carbon credits from the World Bank, presenting a “golden opportunity” as Pakistan possessed the necessary capacity, skilled workforce, and infrastructure for domestic manufacturing. 

“With abundant lithium resources and the potential for in-country battery production, 100 percent localized electric vehicle manufacturing is within reach,” the project direxctor added. 

“By eliminating the need for traditional engines and transmissions, and by localizing production of key components like batteries, Pakistan can position itself as a global exporter of electric vehicles. Stronger support for domestic EV manufacturing will undoubtedly accelerate production.”

NEW EV POLICY

Hybrid electric vehicle sales in Pakistan have more than doubled in the past year. BYD Pakistan, a partnership between China’s BYD and Pakistani car group Mega Motors, said in September up to 50 percent of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets.

The Warren Buffett-backed Chinese electric vehicle giant BYD announced its entry into Pakistan in August, making the nation of 250 million people one of its newest markets.

Local media reported in August that standards for EV charging stations had been drafted by the power ministry, with the government considering offering them affordable electricity.

Under the new EV policy, the government has introduced subsidies of Rs50,000 for electric motorcycles and Rs200,000 for three-wheelers like rickshaws, with a total allocation of Rs4 billion. These subsidies will be distributed through auctions. So far, two companies have been granted licenses, and 31 more applications are under review.

The policy also incorporates a reduction in the policy rate from 22 to 15 percent, with financing available at a three percent Kibor (Karachi Interbank Offered Rate) and the government covering the financial cost. Consumers will pay monthly installments of around Rs9,000 over two years, an amount lower than their projected fuel savings.

A Credit Loss Guarantee managed by the Finance Division will ensure no financial burden on the Ministry of Industries or consumers.

Additional initiatives include offering free electric bikes or scooters to 120 high-achieving students and reducing duties on EV components to encourage local manufacturing. The government is also set to establish a New Energy Fund and a New Energy Vehicle Center to support these measures.

BYD Pakistan is also collaborating with two oil marketing companies to establish a charging infrastructure network and aims to establish 20 to 30 charging stations within the initial phases concurrent with the rollout of its cars.

BYD Pakistan will initially sell fully assembled vehicles, which are subject to higher import charges than vehicles shipped in parts and assembled locally. Dewan Motors is also set to launch its EVs under the completely knocked down (CKD) license.