MMK Steel Group of Russia has shown interest in purchasing Pakistan Steel Mills, Karachi, which is under process of privatisation. A 10-member delegation of MMK Steel group on Wednesday called on Industries Minister Jehangir Khan Tareen here and expressed the group's interest to invest in Pakistan's steel sector, especially in Pakistan Steel, which is based on Soviet Union steel technology.

Official sources told media that the MMK group was running Magnitogorks Iron and Steel Works, which is the largest single site steel producer in Russia and No 20 in the world.

The head of the delegation and Deputy Director General of MMK Group, Rafaat S Pakhaupinov, said that MMK wanted to purchase the 25-year-old Pakistan Steel with the aim to upgrade and modernize the existing plant and its capacity and environment.

The Minister told the delegation that Pakistan would encourage foreign investment in steel manufacturing sector to meet its present and future demand of steel and engineering industries.

He said that the government had chalked out a comprehensive strategy for development of steel and engineering sector in view of rapid demand of steel products, and Pakistan needed more steel mills in the private sector to fill the gap between demand and supply.

Industries and Production Secretary Suleman Ghani said that the government had decided to privatize Pakistan Steel Mills to encourage the private sector to make greater investment in steel industry, and the procedure for bidding would be very transparent and all local and foreign investors were welcome.