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The Policy Reset: Pakistan-Russia relationship got a Reset
First Russian Defence Minister's visit to Pakistan in four decades is a right step in realigning Pakistan's foreign policy in military partnership and focus shall be on broadening it into wider economic and social ties as well. It's imperative for both countries to enhance and improve bilateral terms.
Lately Pakistan's nuclear arch rival's (India) military trade and investment is clearly tilting towards the US and that is making former's biggest historic arm's exporter uncomfortable. Russia in the last few decades has provided for 75 percent of Indian's military hardware needs. Lately, USA has increased its military relationship with India as in 2014 India bought $1.9 billion worth of weapons to become the largest military hardware importer from America. Concurrently, the US is exiting from Afghanistan and post 9-11 utmost important Af-Pak strategic ties are losing its steam.
The transition to the new era is largely depending upon how the newly formed democracy nourish in Afghanistan. Only time will tell how new PM Abdullah Abdullah will reshape the country and how this regime would be different from weak Karzai's government. The new PM appears to build Afghanistan's relationship with all the important countries in the region including Pakistan, India, China and Russia; and also he is eyeing to be at peace with Taliban at home.
Nonetheless, the shift of American focus in the region from Pakistan to India is a wakening call for our foreign office to also look at east to diversify its trade and investment. The efforts are visible as on the economic front, all of the Pakistan's public and private sectors are eyeing on China and the latter is committing to invest and lend $35-45 billion in coming 5-7 years.
But China is far behind on military technology than of US and European countries, and none other than Russia has compatible military hardware and advanced technology. Hence, it's a right move to look at Russia for some military imports. However, there is no need to be overexcited on the deal of buying twenty MI-35 helicopters from Russia on two grounds. First the purchasing is done on cash and anyone around is willing to sell anything on cash. Secondly, MI-35 helicopters are no way close to F-16 and other hardware Pakistan got from the US packaged in aid and trade.
Interestingly at the time when Russian Defence Minister Sergei Shoygu was meeting Pakistan political leadership and signing defence pact, Pakistan top military leader Raheel Sharif was in Washington and assuring US leadership that Pakistan military is not discriminating in efforts of eradication of militants from the region. It's a good sign - Pakistan is deliberating to keep its strategic position in fighting terrorism that is inflicting both Pakistan and Afghanistan at the time when US and Nato forces are exiting. Concurrently, it is diversifying relationship in the East by opening ties with Russia.
The need is to expand it further. The efforts had already been made by the previous government when the Russian premier Putin was scheduled to visit Pakistan in 2012, however, it did not materialise and now this government should retry to engage more with Russia on economic front. The ground breaking deal could have been materialised in 2006 (Musharraf's era) when a Russian company offered a controlling stake of 40 percent in a consortium in buying Pakistan Steel Mills. The deal was anchored by the then prime minister Shaukat Aziz; but Supreme Court came to his way and Russians were angry for the deal not materialising.
PSM has deteriorated further in last eight years and is of constant drain to the tight fiscal position of the government and the privatisation commission shall restart its efforts with Russians to help in bailing it out. It is pertinent to note that, it was Russians, prior to the cold war, who built the Pakistan Steel Mill and Oil and Gas Development Company, and any rebuilding of relationship shall revive good old days of industrial partnership.
Additionally, Russia can be of great help in resolving energy woes at home. PM house has stated that it has invited Russian companies to come and invest in Pakistan energy sector to take advantage of business friendly policies. The half a billion trade between the countries is deemed to be too little from its potential. Pakistan shall seek Russian support in building energy infrastructure and importing gas from Russia.
With Ukraine crises the EU is swaying away from buying Russian gas and at the same time, America is in offing of cheaper Shale gas to EU countries having free trade agreements with the US. In a nutshell, Russia ought to look south and east for oil and gas buyers and Pakistan is in dire need to import gas.
Gazprom (a Russian based one of largest natural gas company) can help Pakistan in meeting its energy shortfall and in connecting with central Asia and it can be instrumental in developing Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. But it all has to pass through Afghanistan and it would not be possible without eradication of extremist elements from probably world's toughest terrain. Let's hope the newly-formed government in Afghanistan amidst US external forces departure will pave way for connecting central Asia to Pakistan and more reasons for us to build relationship with Russia.
Copyright Business Recorder, 2014
The policy reset: Pakistan-Russia relationship | Business Recorder
First Russian Defence Minister's visit to Pakistan in four decades is a right step in realigning Pakistan's foreign policy in military partnership and focus shall be on broadening it into wider economic and social ties as well. It's imperative for both countries to enhance and improve bilateral terms.
Lately Pakistan's nuclear arch rival's (India) military trade and investment is clearly tilting towards the US and that is making former's biggest historic arm's exporter uncomfortable. Russia in the last few decades has provided for 75 percent of Indian's military hardware needs. Lately, USA has increased its military relationship with India as in 2014 India bought $1.9 billion worth of weapons to become the largest military hardware importer from America. Concurrently, the US is exiting from Afghanistan and post 9-11 utmost important Af-Pak strategic ties are losing its steam.
The transition to the new era is largely depending upon how the newly formed democracy nourish in Afghanistan. Only time will tell how new PM Abdullah Abdullah will reshape the country and how this regime would be different from weak Karzai's government. The new PM appears to build Afghanistan's relationship with all the important countries in the region including Pakistan, India, China and Russia; and also he is eyeing to be at peace with Taliban at home.
Nonetheless, the shift of American focus in the region from Pakistan to India is a wakening call for our foreign office to also look at east to diversify its trade and investment. The efforts are visible as on the economic front, all of the Pakistan's public and private sectors are eyeing on China and the latter is committing to invest and lend $35-45 billion in coming 5-7 years.
But China is far behind on military technology than of US and European countries, and none other than Russia has compatible military hardware and advanced technology. Hence, it's a right move to look at Russia for some military imports. However, there is no need to be overexcited on the deal of buying twenty MI-35 helicopters from Russia on two grounds. First the purchasing is done on cash and anyone around is willing to sell anything on cash. Secondly, MI-35 helicopters are no way close to F-16 and other hardware Pakistan got from the US packaged in aid and trade.
Interestingly at the time when Russian Defence Minister Sergei Shoygu was meeting Pakistan political leadership and signing defence pact, Pakistan top military leader Raheel Sharif was in Washington and assuring US leadership that Pakistan military is not discriminating in efforts of eradication of militants from the region. It's a good sign - Pakistan is deliberating to keep its strategic position in fighting terrorism that is inflicting both Pakistan and Afghanistan at the time when US and Nato forces are exiting. Concurrently, it is diversifying relationship in the East by opening ties with Russia.
The need is to expand it further. The efforts had already been made by the previous government when the Russian premier Putin was scheduled to visit Pakistan in 2012, however, it did not materialise and now this government should retry to engage more with Russia on economic front. The ground breaking deal could have been materialised in 2006 (Musharraf's era) when a Russian company offered a controlling stake of 40 percent in a consortium in buying Pakistan Steel Mills. The deal was anchored by the then prime minister Shaukat Aziz; but Supreme Court came to his way and Russians were angry for the deal not materialising.
PSM has deteriorated further in last eight years and is of constant drain to the tight fiscal position of the government and the privatisation commission shall restart its efforts with Russians to help in bailing it out. It is pertinent to note that, it was Russians, prior to the cold war, who built the Pakistan Steel Mill and Oil and Gas Development Company, and any rebuilding of relationship shall revive good old days of industrial partnership.
Additionally, Russia can be of great help in resolving energy woes at home. PM house has stated that it has invited Russian companies to come and invest in Pakistan energy sector to take advantage of business friendly policies. The half a billion trade between the countries is deemed to be too little from its potential. Pakistan shall seek Russian support in building energy infrastructure and importing gas from Russia.
With Ukraine crises the EU is swaying away from buying Russian gas and at the same time, America is in offing of cheaper Shale gas to EU countries having free trade agreements with the US. In a nutshell, Russia ought to look south and east for oil and gas buyers and Pakistan is in dire need to import gas.
Gazprom (a Russian based one of largest natural gas company) can help Pakistan in meeting its energy shortfall and in connecting with central Asia and it can be instrumental in developing Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. But it all has to pass through Afghanistan and it would not be possible without eradication of extremist elements from probably world's toughest terrain. Let's hope the newly-formed government in Afghanistan amidst US external forces departure will pave way for connecting central Asia to Pakistan and more reasons for us to build relationship with Russia.
Copyright Business Recorder, 2014
The policy reset: Pakistan-Russia relationship | Business Recorder