Pakistan will repay $93.5 million debt to Russia following the two countries signing an agreement to settle mutual financial claims and obligations on operations of Russia, as per a Russian news correspondent.
The agreement was signed by Ambassador Qazi Khalilullah on part of Pakistan and Deputy Finance Minister Sergey Storchak on part of Russia.
Once Pakistan repays the debt, Russia will be able to invest $8 billion in different sectors in Pakistan that includes initially the energy and steel industry.
Back in the 1980s, the Soviet Union imported from Pakistan, textile and other products. The country opened two bank accounts in the National Bank of Pakistan (NBP) for this purpose.
As the Soviet Union collapsed, there were many Pak exporters that were not paid for their goods. Pak companies claimed that they paid large sea freight fees for the unshipped goods.
Then in 1996, the funds’ transfer from the Russian bank accounts of the National Bank of Pakistan was limited by the Sindh High Court.
Recently in June, 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. The investment in the pipeline is worth $3 billion. Back in 2017 the Moscow and Islamabad also voiced negotiating on possible participation of Russian companies in the projects to build the Turkmenistan-Afghanistan-Pakistan-India Pipeline.
Earlier we informed our readers that a Russian tech firm is interested to make the investment in the electric vehicle industry of Pakistan with the most recent technology called Nano Tubes.