Pakistan and Russia have officially signed a barter trade deal during the inaugural Pakistan-Russia Trade and Investment Forum held in Moscow on October 2, 2024. This agreement marks a significant milestone in their economic relations, allowing for increased bilateral trade projected to rise from approximately $1 billion to $1.5 billion.
The forum saw over 60 Pakistani companies participating, showcasing a diverse range of products including textiles, agriculture, and pharmaceuticals, with a combined export value exceeding $500 million. This indicates a robust interest from Pakistan to strengthen its economic ties with Russia, which is viewed as an important trade partner
https://profit.pakistantoday.com.pk/2024/10/02/pakistan-russia-sign-first-ever-barter-trade-deal/
https://www.bloomberg.com/news/arti...arter-lentils-for-rice-amid-payment-struggles
Future Prospects
With this barter agreement in place, both nations are expected to explore further joint ventures across various sectors, enhancing their long-term economic collaboration. The successful implementation of this deal could pave the way for similar arrangements with other nations facing similar sanctions-related challenges
Key Details of the Barter Trade Agreement
- Participants: The deal involves major players such as the Russian company Astarta Agrotrading and Pakistani firms Meskay & Femtee Trading Company and National Fruit Processing Factory.
- Goods Exchanged:
- Russia will supply 20,000 tons of chickpeas in exchange for an equal amount of Pakistani rice.
- Additional exchanges include 15,000 tons of chickpeas and 10,000 tons of lentils from Russia for 15,000 tons of mandarins and 10,000 tons of potatoes from Pakistan
https://arynews.tv/pakistan-russia-sign-barter-trade-deal/
Context and Implications
The barter system is a strategic response to the payment difficulties arising from Western sanctions imposed on Russia due to its actions in Ukraine. This arrangement allows both countries to conduct trade without relying on monetary transactions, thus circumventing the complications associated with international banking systems under scrutinyThe forum saw over 60 Pakistani companies participating, showcasing a diverse range of products including textiles, agriculture, and pharmaceuticals, with a combined export value exceeding $500 million. This indicates a robust interest from Pakistan to strengthen its economic ties with Russia, which is viewed as an important trade partner
https://profit.pakistantoday.com.pk/2024/10/02/pakistan-russia-sign-first-ever-barter-trade-deal/
https://www.bloomberg.com/news/arti...arter-lentils-for-rice-amid-payment-struggles
Future Prospects
With this barter agreement in place, both nations are expected to explore further joint ventures across various sectors, enhancing their long-term economic collaboration. The successful implementation of this deal could pave the way for similar arrangements with other nations facing similar sanctions-related challenges
