MOSCOW – Russia has decided to develop its stakes in Pakistan’s economy ina big way and to this effect a 64-member delegation headed by Minister forTrade and Industries for the Russian Federation Denis V Manturov isvisiting Pakistan for four days from today to December 11 to attend anInter-Governmental Commission.
Russia contributed a lot towards Pakistan’s progress as it built thePakistan Steel Mills, OGDCL, Guddu and Mazzafargarh power plants, installeda lot of hydel turbines, and repaired the Jamshoro power plant and moreimportantly it was a Russian engineer who erected Minar-e-Pakistan(Pakistan Tower).
Under the latest scenario, Russia has aspired many times to helpreconstruct Pakistan Steel Mills making it economically viable and play itsrole in Pakistan’s energy sector.Russia also wants to construct the railway track from Quetta to Taftan.
Russia will offer Sukhoi SuperJet-100 passenger planes to Pakistan for PIA,senior officials at Economic Affairs Division, ministries of Industries andProduction and Commerce.Russia and Pakistan will also figure out the much-delayed North-South gaspipeline.
This will be the sixth meeting between the two countries at the IGC levelon economic, trade, scientific and technical co-operation. Federal Ministerfor Economic Affairs Hammad Azhar will represent Pakistan during the talksat IGC level. Both sides will find out more avenues in co-operation ontrade, economic, scientific, and technical areas in IGC meetings.
The officials said that working group of both the countries on energy willmeet on December 9 whereas working group on trade and industries will holdtalks on December 10 and a plenary session is to be held on December 11.
Mentioning about the Russian offer of SSJ-100 aircraft to PIA, theofficials said that the said planes will be available on direct purchaseand lease to purchase options and can be positioned immediately on wetlease to meet the immediate operational requirements of PIA.
The aircraft can be operated both on domestic and international sectors toMiddle East, CIS, India, China, Colombo, Bangladesh, UAE etc.Aircraft can be supplied on both wet or dry lease with option to purchase.
The official said that the route analysis done for PIA in 2012 and moreimportantly Sukhoi SuperJet SSJ-100 is a pet project of President Putin.
Coming to Pakistan Steel Mills, the official said that Russia in the recentpast offered three options saying under option-1, Russia wanted that itsstate-owned companies under g-to-g arrangement will revamp Pakistan SteelMills and then it will handover it to Pakistan and under option-2, Russianstate-owned companies will under g-to-g arrangement revamp PSM with theirown management required for operation and maintenance.
And under third option, the project will get divided in three parts forrevamping under which power plant of 156MW will be rehabilitated separatelyand similarly Coke Oven Battery Plan (COPB), Cold Rolling Mills and HotStrip Mills and Jetty will be revamped separately.
However, Pakistan wants to deal with Pakistan Steel Mills under publicprivate partnership (PPP) mode.
The official went on to say that during the IGC meeting, there are chancesto create joint venture in Pakistan for production and maintenance ofrolling stock of spare parts that can be used for running the PakistanSteel Mills.
During the 4 days visit, both the countries would also explore avenues forincreasing the bilateral trade which currently stands at about $400mn.
Pakistan’ exports stand at $150mn while import from Russia $250mn.Last year the bilateral trade surged by up to $700mn as Pakistan purchasedMI-35 helicopters from Russia.
Talking about much-delayed North-South pipeline, the official said thatRussia has so far failed to provide sanctions-free structure to Pakistanfor initiating $2.1bn pipeline.
Pakistan is very sensitive about involvement of any Russian company that isfacing sanctions or on Watch List, as Pakistan cannot afford any Russiancompany to be involved in laying down N-S pipeline as it is under scannerof FATF and is still in the grey list.
During the visit this project would also be figured out and progress willonly be made once the Russian side provides the sanctions-free structure upto the satisfaction of Pakistan,’ the official concluded.