ISLAMABAD – Pakistan and Russia have signed their largest-ever deal worthbillions of dollars for expanding trade and business ties, Pakistaniofficials have announced, according to a report by RT.
Russian Minister of Industry and Trade Denis Manturov is leading a64-member delegation on an official four-day visit to Pakistan, and thedeal includes huge investments in energy, rail and steel industries.
According to the agreement, Russia will provide financial assistance worth$1 billion for the rehabilitation and upgrading of the Pakistan Steel Mills(PSM) project.
Russian Sukhoi Superjet 100 (SSJ-100) planes will be supplied on both wetand dry lease with an option to purchase, according to Pakistani officials.The narrow-bodied aircraft with a dual-class cabin is capable oftransporting 100 passengers over regional routes.
The two sides also discussed investments in the much-delayed North-Southgas pipeline.
Russian companies are expected to build a gas pipeline from Karachi in thesouth to Lahore in the north-east to transport imported natural gas to meetthe region’s energy demands.
Earlier this year, Russia promised a $14 billion investment in Pakistan’senergy sector, including $2.5 billion for the North-South pipeline project.
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A Russian company has developed a project to convert the Muzaffargarhthermal power station to coal and establish a 600-megawatt coal-fired powerplant at Jamshoro.
Islamabad, which purchased MI-35 helicopters in 2018, is interested inother Russian hardware as well. The two nations aim to increase bilateraltrade which last year stood at $700 million. Pakistan’s exports to Russiareached $150 million while imports from Russia are worth $250 million.
Moscow will also help to construct a railway track from Quetta to Taftan.
Last week, Pakistan and Russia signed an agreement on the settlement ofmutual financial claims and commitments on operations of the former SovietUnion, whereby Pakistan repaid a $93.5 million debt to Russia.
“We have removed the problem. Russia will come to Pakistan strongly now,”said a Pakistani government official.
