ISLAMABAD – Pakistan has finally decided to settle its decades old tradedispute with Russia, after Islamabad authorized its ambassador in Moscow tosign a deal with the country.
The trade dispute, which goes back to the days of Soviet era, involves $117million and many unsuccessful efforts have been made in the past to end thedispute. According to a report in *The Express Tribune*, Pakistan willreturn $93.5 million to Russia within 90 days of the signing of theagreement and clear pending exporters’ claims that sums up to $23.8 millionas per the settlement agreements reached in 2016-17.
The trade dispute negatively affected the relations between Russia andPakistan and it is hoped that the settlement would open doors for enhancedbilateral political, economic and diplomatic relations between the twocountries.
Trade dispute’s background
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As per reports, back in 1980s, the then Soviet Union used to buy textileand other materials from Pakistan. For this purpose the USSR opened twobank accounts in the National Bank of Pakistan (NBP), with funds gettingdeposited in the accounts by the Economic Affairs Division through StateBank of Pakistan.
Upon the disintegration of Soviet Union, some exports payments were leftunpaid and as the trade dispute got prolonged. Pakistani companies got stayorders in the Sindh High Court, barring the NBP from transferring funds ofRussian banks held in its two accounts since 1996.
