‘Practical steps needed to improve economic ties with Russia’

KARACHI: Businessmen on Tuesday urged the government to take practical steps to enhance economic cooperation with Russia and invite investment in Pakistan’s energy, steel production and telecommunication sectors.

Addressing the first virtual meeting of Pakistan-Russia Business Council (PRBC), businessmen said issues related to visa on reciprocal basis, free trade agreement with Russia, Eurasian economic union, establishment of Pak-Russia Joint Chamber of Commerce, and establishment of warehouses should be resolved. The issues are already under discussion between the authorities of both the countries.

The meeting was attended by PRBC Chairman Zakir Jaffer, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Anjum Nisar and others.

Nisar said the bilateral trade of Russia and Pakistan needs more practical steps as there is huge potential for investment and economic cooperation in steel production, telecommunication, power and oil and gas sectors.

“There is a need to revitalise the activities of both countries’ friendship for bringing Pakistani and Russian people closer through exchange of trade delegations,” he said in a statement. “A coherent strategy should be adapted for enhancing people-to-people contacts in various fields of business and commerce, social and culture.”

In February, Pakistan settled a 40-year old trade dispute with Russia after paying $93.5 million to Moscow. The issue was a major hurdle in boosting country’s trade ties with Russia.

Earlier last year, the government authorised its Ambassador to Russia to sign a deal. Under the agreement, the Pakistani government was bound to return $93.5 million to Russia within 90 days of the signing and clear pending exporters’ claims to the tune of $23.8 million as per the settlement.

Nisar said the matter of long-pending outstanding amount has been resolved with the efforts of FPCCI. He hoped PRBC would work for promotion of Pakistan-Russia bilateral trade and economic relations.

Jaffer assured his full contribution to enhance and strengthen Pakistan-Russia bilateral relations on the line of previous team of PRBC. During the meeting, he presented a comparative study of Pakistan-Russia bilateral trade and economic relations. Bilateral trade reached $800 million in 2018.

“PRBC will focus on ways and means to utilise for smooth bilateral trade with Russia such as opening of commercial banks and corresponding banks in both countries to provide level playing field to the business communities of both countries,” he said.

Mohsin Sheikh, former chairman of PRBC said the council should pursue the matters in the concerned quarters for the promotion of bilateral trade relations with Russia.