ISLAMABAD: Pakistan and Russia inch closer further on the bilateral front.
Pakistan has finally paid an amount of $93.5 million to Russia to settlethe longstanding trade dispute, which had disturbed trade ties between thetwo countries for four decades.
The dispute resolution was likely to help improve trade ties betweenPakistan and Russia, an official of the Ministry of Commerce (MoC) said onTuesday.
According to Additional Secretary MoC Javed Akbar, the payment of $93.5million against the Russian exporters’ claims pending since thedisintegration of the Soviet Union would now pave the way for billions ofdollars investments by Russian investors in Pakistan.
He said the dispute, among other impediments, was the major hurdle inboosting trade ties with Russia, adding Russian investors were now takinginterest in various sectors in Pakistan.
Earlier last year, the government had authorised its Ambassador to Russiato sign the deal. Under the agreement, the Pakistani government was boundto return $93.5 million to Russia within 90 days of the signing and clearpending exporters’ claims to the tune of $23.8 million as per thesettlement agreements reached on October 6, 2016 and December 27, 2017.
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The efforts to sign the deal with Russia were initiated by the previousgovernment of PML-N and were materialised by the incumbent regime.
Moscow had earlier conveyed to Islamabad that it would invest $8 billion inPakistan’s energy sector and the Pakistan Steel Mills. But according to theRussian laws, the country cannot invest in countries with which it hasdisputes.
The deal will now enable Russia to invest in different sectors in Pakistan.
During the 3rd Pakistan-Russia Inter-Governmental Commission meeting heldin Moscow from November 28-30 in 2015, both sides had initiated anagreement between the two governments, wherein Islamabad agreed to return$93.5 million within 90 days of the signing of the agreement.
