Russia to invest $8 billion in Pakistan

$8 billion

Russia has agreed to invest $8 billion in Pakistan following the agreement between Pakistan and Russia to settle the 4-decade old trade dispute.

Back in the 80s, there were a few USSR companies that were importing textile products from Pakistan. USSR opened two bank accounts in the National Bank of Pakistan (NBP) to facilitate the trade process.

Funds were deposited by the Economic Affairs Division (EAD) in these bank accounts via the State Bank of Pakistan. Once, the USSR collapsed there were many exporters who did not get paid. Pak companies claimed that they paid large sea freight fees for the unshipped goods.

The dispute was moved by the exporters and Pak companies to the Sindh High Court (SHC). A stay order was issued by SHC that stopped NBP from transferred $104.93 million to Russian banks.

At the 3rd Pakistan-Russia Inter-Governmental Commission session, both countries initiated a dialogue. An agreement was reached between both governments that Islamabad will return $93.5 million in 90 days once the official agreement is signed.

Back in 2017, the Pak companies reached an agreement with the government and withdrew their cases from court.

Once this is resolved, Russia is ready to invest $8 billion in different energy projects.

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