Pakistan steel manufacturer Pak Steel is considering building a new rebar and steel facility in Uzbekistan after talks between company CEO Hassan Farid and Uzbek Ambassador Alisher Tukhtaev. The proposal was discussed during their recent meeting, with Pak Steel currently evaluating the Central Asian nation as a potential production base.

High energy costs in Pakistan are driving the shift. Farid cited expensive electricity as a key factor eroding the company’s production competitiveness, making Uzbekistan’s relatively accessible energy resources and industrial infrastructure an attractive alternative. The firm is also reviewing local investment incentives.

No details on investment size, capacity, or timeline have been released.

Pak Steel currently supplies rebar, structural steel, and other products for Pakistan’s roads, metros, housing, and industrial projects.