Russian Consul General Andrey Demidov has said that Russia, being a top energy supplier, is ready to extend cooperation to Pakistan for overcoming energy shortages. The consul general was speaking at the Lahore Chamber of Commerce and Industry. LCCI President Shahzad Ali Malik, Senior Vice President Sheikh Mohammad Arshad, FPCCI Pakistan-Russia Business Council Chairman Farooq Afzal, LCCI Executive Committee Member Mian Zahid Javaid and former EC member Rehmatullah Javed also spoke on the occasion.
The consul general noted that there were distinct opportunities for cooperation in energy during the upcoming visit of President Asif Ali Zardari to Russia scheduled for May 17 this year. Demidov said that there is great potential for Pakistani businessmen in rice, fruits, pharmaceuticals, sports goods, leather, apparel, hosiery, textile and fabrics. Therefore, Pakistani businessmen should join hands with their counterparts in Russia. Elaborating on the point, he said in the case of fruit alone, the Russian market size is $5.77 billion out of which 80 percent which is being imported. The market size for pharmaceuticals is $14 billion with an annual growth of 11.4 percent and out of which 74 percent are being imported by Russia.
The Consul General said that in Russia $3.0 billion of sports goods are presently being imported and Pakistani sport goods manufacturers have a great possibility to expand business. He said that same is the case with leather and apparels as Russia is also importing $10 billion worth of leather goods and the sector is worth $21 billion overall. He urged the LCCI president to arrange a sector specific delegation so that Pakistani businessmen could gain first hand knowledge about the opportunities in Russia.
The LCCI president expressed his concern over the meager share of Pakistan in total trade being done by Russia with other countries. “We need to explore ways to smoothen trade ties particularly making efforts to gradually increase overall trade volume with a special focus on closing the gap of trade deficit for Pakistan.” Malik said that the business community is fully committed to play its due role to improve the situation. “We believe that with the help of such interactions, the possibilities of bringing enhancement in trade can be explored.” The LCCI president said that the massive population together with neighboring countries forms a potential market in the fields of textile garments, rice, leather, sports goods, surgical equipment and pharmaceutical products.
By accessing information related to trade inquiries, Pakistani businessmen can penetrate into Russian market considering country’s capacity of exports. He said that there lies a great potential to import power equipment, steel, urea, chemicals from Russia while the oil and gas sector in Pakistan offers great opportunities to Russia which has the requisite expertise and technology in this field. Likewise, Russia can evaluate the possibilities of collaborating with Pakistan for mining of marble and granite as well, he stated. Shahzad Ali Malik said that both Pakistan and Russia should jointly look into the possibilities of organizing trade delegations and exhibitions in each other’s countries, as it has become the most effective tool of marketing strategy.
There is also a need for a more proactive communication between the Chambers and Diplomatic Missions of the two countries. Major items of exports from Pakistan to Russia include cotton, fruits, nuts, cereals, manmade staple fibres, textile articles, technical & medical apparatus, sports goods, stone, cement, animal gut and leather goods. Whereas Pakistan imports cereals, iron and steel, fertilizers, paper & paperboard, rubber, copper, dried and frozen vegetables, machinery, organic & inorganic chemicals etc., from Russia.