ISLAMABAD: Restoring strategic ties, Pakistan decides to long pendingdispute with Russia, media report has claimed.
After restoring strategic relations with Russia, Pakistan is all set tosolve its long-pending trade dispute worth $117 million with Moscow, as itallowed Pakistani Ambassador to Russia to ink an inter-governmentalagreement with Russia, Pakistan Today has reported.
Sources privy to the development informed that the federal cabinet in itsmeeting on 29th October had considered a Commerce Division’s summary titled“Agreement between the Government of Pakistan and Government of Russia onSettlement of Mutual Financial Claims and Obligations on Operations of theformer USSR”.
They said after necessary deliberations, the federal cabinet granted itsnecessary approval in this regard.
According to sources, the Commerce Division informed the cabinet that in1980s, the then USSR and its companies used to buy textile and othermaterials from Pakistani companies.
In order to ensure smooth functioning of barter trade, former USSR openedtwo bank accounts in the National bank of Pakistan (NBP). The funds in thesaid accounts were deposited by the Economic Affairs Division (EAD) throughState Bank of Pakistan (SBP).
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Upon disintegration of the Soviet Union, some exports payments remainedunpaid. In addition, these were also claims of Pakistani companies forunshipped goods based on orders they had generated against sea freightbusiness obtained for USSR companies.
As the dispute got prolonged, some Pakistani companies got stay orders inthe Sindh High Court (SHC), restraining NBP from transferring funds ofRussian banks held in its accounts since 1996, which amount to $104.93million and Rs1,309 million.
A number of attempts were made in the past to resolve this dispute, butthey had remained unsuccessful.
