A 40 years old trade dispute with Russia has been settled. Pakistan has paid an amount of $93.5 million (Rs14.42 billion) to Moscow. This issue was a major reason why Pakistan’s trade ties with Russia were suffering.
As per an official, with this trade dispute resolved, ties between Pakistan and Russia will improve. The payment of $93.5 million against the Russian exporters’ claims that were pending since the disintegration of the Soviet Union will now pave the way for mega investments by Russian investors in Pakistan, as per the official.
Back in 2019, the Ambassador to Russia was authorized by the government to sign the deal. Under this agreement, the Pak government had 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 agreements reached on 6th October 2016 and 27th December 2017.
Late last year Russia agreed to expand cooperation with Pakistan on different fronts. Russia was willing to cooperate with Pakistan in the industrial, energy, agriculture, railways, and the medical sector.
Russian Trade Minister Denis Valentinovich Manturov made these remarks during the sixth meeting of Pakistan-Russia Inter-governmental Commission on Trade, Economic, Scientific Technical Cooperation at the Foreign Office in Islamabad.
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Also, it is pertinent to mention here that in June 2019, a memorandum of understanding was signed between Russia and Pakistan to construct the North-South gas pipeline by 2020. The pipeline will connect Iran, Pakistan, and India.