By Muhammad Luqman
Pakistan has settled a decades old trade dispute with Russian Federation with the payment of an amount of $93.5 million (Rs1,442 billion) to Moscow. The issue had been a major hurdle in boosting country’s trade ties with Russia.
The dispute resolution is likely to help improve trade ties between Pakistan and Russia, according to Pakistan’s Ministry of Commerce officials.
The payment of $93.5 million against the Russian exporters’ claims pending since the disintegration of the Soviet Union would now pave the way for investment worth billions of dollars in Pakistan.
Earlier last year, the government had authorised its Ambassador to Russia to sign the deal. Under the agreement, the Pakistani government was bound to return $93.5 million to Russia within 90 days of the signing and clear pending exporters’ claims to the tune of $23.8 million as per the settlement.
Russia had communicated last year said it was willing to expand cooperation with Pakistan on multiple fronts, including the industrial sector, agriculture, energy, medicine and railways, Radio Pakistan had reported.
The remarks were made by Russian Trade Minister Denis Valentinovich Manturov during the sixth meeting of Pakistan-Russia Inter-governmental Commission on Trade, Economic, Scientific Technical Cooperation at the Foreign Office in Islamabad.
Back in 1980s, the then Soviet Union used to buy textile and other materials from Pakistan. For this purpose the USSR opened two bank accounts in the National Bank of Pakistan (NBP), with funds getting deposited in the accounts by the Economic Affairs Division through State Bank of Pakistan.
Upon the disintegration of Soviet Union, some exports payments were left unpaid and as the trade dispute got prolonged. Pakistani companies got stay orders in the Sindh High Court, barring the NBP from transferring funds of Russian banks held in its two accounts since 1996.
