Pakistan clears $93.5m to settle decades-old trade dispute with Russia

[StormBreaker]

ISLAMABAD: Pakistan has finally paid an amount of $93.5 million to Russia to settle the longstanding trade dispute, which had disturbed trade ties between the two countries for four decades.

The dispute resolution was likely to help improve trade ties between Pakistan and Russia, an official of the Ministry of Commerce (MoC) said on Tuesday.

According to Additional Secretary MoC Javed Akbar, 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 billions of dollars investments by Russian investors in Pakistan.

He said the dispute, among other impediments, was the major hurdle in boosting trade ties with Russia, adding Russian investors were now taking interest in various sectors 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 agreements reached on October 6, 2016 and December 27, 2017.

The efforts to sign the deal with Russia were initiated by the previous government of PML-N and were materialised by the incumbent regime.

Moscow had earlier conveyed to Islamabad that it would invest $8 billion in Pakistan’s energy sector and the Pakistan Steel Mills. But according to the Russian laws, the country cannot invest in countries with which it has disputes.

The deal will now enable Russia to invest in different sectors in Pakistan.

During the 3rd Pakistan-Russia Inter-Governmental Commission meeting held in Moscow from November 28-30 in 2015, both sides had initiated an agreement between the two governments, wherein Islamabad agreed to return $93.5 million within 90 days of the signing of the agreement.

SOURCE : Profit

 

[PradoTLC]

Good.

 

[Baby Leone]

what was that for?

 

[Rafi]

what was that for?

Unpaid dues that had accumulated during the fall of the Soviet union.

 

[aziqbal]

If you owe someone clear it

good but too late they probably charged us interest

 

[Pakistan Ka Beta]

Good . Not too much money , should not be a hurdle b/w two countries .

 

[StormBreaker]

Good . Not too much money , should not be a hurdle b/w two countries .

But I don’t see this amount as something to kick start new unprecedented relations, $195m is nothing !!!

 

[Pakistan Ka Beta]

But I don’t see this amount as something to kick start new unprecedented relations, $195m is nothing !!!

$93.5 millions . Its not about amount of money i think , its about solving a dispute and telling them we are business friendly country with minimum risks .

 

[Kompromat]

Russians are investing over $10b in Pakistan.

 

[StormBreaker]

Russians are investing over $10b in Pakistan.

Infrastructure, Power sector and industry i believe ?
That also includes steel mills right ?

 

[zeeshe100]

Pakistan pays Russia Rs14.42 bn to settle 40 years old trade dispute
ISLAMABAD: Pakistan has settled a 40 years old trade dispute with Russian as Islamabad has paid an amount of $93.5 million (Rs14.42 billion) to Moscow. The issue was a major hurdle in boosting the country’s trade ties with Russia.

The dispute resolution is likely to help improve trade ties between Pakistan and Russia, an official of said on Tuesday, the local media reported.

According to the official, 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 billions of dollar investments by Russian investors 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 agreements reached on October 6, 2016 and December 27, 2017.

 

[zeeshe100]

 

[Yankee-stani]

Great about time we improve our ties with Moscow as part of a new potential Eurasian bloc but in reality Russia will just probably be pragmatic with both Islamabad and New Delhi,but always good to have cordial ties with another world power with a standing like Russia

 

[xyx007]

Russia is seeking an opportunity along with the CPEC in the region to build the Eurasian energy grid in Pakistan so that Caspian Sea energy would be exported by utilizing the potential of Gwadar port (currently handed over to China), which considers a two-way export for East, West, south and North. This energy corridor would turn Pakistan into India’s irreplaceable energy partner, as the Caspian Sea’s proposed inter-continental gas pipelines would pass through Pakistan to South Asia via India. Unfortunately, India's strategic tilt towards imperial power centers of the unipolar world rang the alarm bells in Moscow. Modi’s adventures in wonderland persuaded Russia to keep a strategic balance in the region; Russia welcomed Pakistan as a new friend. But it does not mean that Russia has turned back from India.
This is Superpowers Planning and Allah has different planning for us. Trust His plan.

 

[Pandora]

Russia has lot of economic and defense interests with India and unless that changes fanboys should put a hold to their wet dreams about realignment. Even with current tense relations with US we have better relations with them than we can ever have with Russia. Given the chance Pakistan will always opt for US than Russia.