Pakistan, Russia agree to form five working groups

ISLAMABAD: Pakistan and Russia on Friday agreed on establishing five working groups as both the countries signed agreements to complete the North-South Pipeline with an estimated cost of $2 billion till December 2017, provision of around three-dozen helicopters to curb drug trafficking, kick-starting negotiation on the Free Trade Agreement (FTA) and launching a joint naval exercise by coming December in order to boost bilateral relations.
In a major development, both the countries also signed to end a 20-year-long dispute of $117 million under which Islamabad will pay back around $92 million while the remaining amount will be disbursed among the affected parties.
“Our friendship is not against anybody as it is aimed at promoting people-to-people contact,” Federal Minister for Finance Ishaq Dar said during a joint press briefing, along with visiting Federal Minister for Drug Control for Russian Federation Viktor Ivanov, after signing a Memorandum of Understanding (MoU) on ending the lingering dispute of $117 million and promoting cooperation in the area of science and technology besides signing a protocol on Inter-Governmental Commission the (IGC) here on Friday.
Dar said that the North-South Pipeline would be constructed by Russia as both the sides agreed to the timelines to complete this project till December 2017.
“We have decided that IGC will be met once in a year and sky is the limit for increasing our bilateral relations,” he added. The minister said that Pakistan asked Russia to participate in 26 percent share sale of Pakistan Steel Mills. The Sindh government was offered but so far they did not reply officially on PSM offer, he added.
When the visiting Russian minister was asked about the possible visit of Russian President Putin to Pakistan, he replied that PM Nawaz Sharif had extended an invitation to him for visiting Pakistan and raised a question in the same breath thatthe same breath that both the countries would make an

alliance against whom. “We are peace loving countries and there is no need to forge block against anyone,” he added.
When asked about reasons for increasing relations with Pakistan, the Russian Minister said that they appreciated Islamabad’s balanced view on Ukraine and Syria and both the countries also shared common views on Afghanistan.
He further said that Pakistan would be playing important role in fold of Shanghai Cooperation Organisation (SCO). “Pakistan is a key player in the region. Some new threats are appearing such as drug trafficking and without participation of Pakistan this problem cannot be resolved in Afghanistan,” he added.
When asked Ishaq Dar about possibility of Russia for becoming part of $46 billion Pak China Economic Corridor (CPEC), he said that Russia and other gulf countries including Saudi Arabia and Kuwait could become part of the projects in their standalone position but their contribution would not be treated as alternative to already committed amount. “We are negotiating with all these countries on bilateral levels and they can add up to CPEC,” he added.
Under IGC initiative, Pakistan and Russia established five Joint Working Groups (JWGs) on food and agriculture, energy, industries, banking, trade and finance.
According to joint working group recommendations finalised in IGC meeting on Friday, both the countries agreed on 10-point agenda under which North-South Pipeline would be constructed with agreed timelines where the Russian companies would arrange financing while government of Pakistan would ensure guarantees.
The Joint Coordination Committee (JCC) was agreed to review execution of this project in timely manner.
Gazprom, Russian company will work for providing LNG to Pakistan. The Russian companies will work in Pakistan to explore oil, gas and LPG. The gas turbines will be provided to Pakistan in collaboration with PPL, OGDCL and UEC. Russia will help the country in hydropower projects.
The LNG will be provided for 1200MW Guddu Power Project, 600MW Jamshoro Power Project, Thar Coal in block 8 and 11, Hubco transmission and Lahore transmission lines.
The Russia also agreed to help Pakistan in Dasu and Tarbela hydropower projects besides assisting Islamabad in materialising much awaited CASA-1000 power project.
Once both the sides agreed on these projects then Russian companies will arrange financing to execute these projects while Pakistan will ensure GoP guarantees in timely manner.