Trade relations between Russia and Pakistan may face a set back as Moscow is feeling the heat of the long absent direct sea, air and banking links with Islamabad, something Russians believe are hindering mutual trade. Russia sees “good prospects” for the initiative as the traders and industrialists in Pakistan urge the need for a Preferential Trade Agreement (PTA) between the two countries to promote bilateral trade ties.
“(The) unavailability of direct shipping-lines, airlines and banking channel are major obstacles impeding bilateral trade,” said Andrey V. Demidov, Russian Consul General during his visit to the Karachi Chamber of Commerce and Industry (KCCI) on Wednesday.
At the Chamber, Demidov met KCCI President Muhammad Haroon Agar, Senior Vice President KCCI Shamim Firpo, Vice President Nasir Mehmood, Former President KCCI Majyd Aziz and members of the Chamber’s managing committee.
The Russian consul general said good prospects for Pak-Russia PTA existed. “Russian Mission can prepare feasibility study on PTA as deliberations are required on certain legalities,” he added.
Demidov viewed that to execute transit trade from Gawader Port, adequate infrastructure, railways, highways and bridges were essential.
He recalled that in early ‘90s PIA operated to Moscow and the restoration of such direct air-connectivity was important. “In past, PIA also used to stopover to Moscow while going to UK, while Russian Airline may stopover Islamabad or Karachi while going to UAE which can provide opportunity to visitors of both countries for interaction,” observed the Russian consul.
Citing Pakistan Steel Mills (PSM) as a good example of past cooperation between the two countries, he said similar cooperation could be extended in many areas, particularly in energy as Russia was number one in the energy sector.
About the postponed visit of President Vladimir Putin to Pakistan, Demidov said upon his visit various MoUs and cooperation documents would be signed between the two countries.
Seeing a huge demand for Pakistani textiles and leather garments in Russia, he said Pakistan could also export potato, rice, vegetables and fruits to his country.
“Russia is manufacturing helicopters and commercial jets which can be provided to Pakistan. Pakistani natural pharmaceutical products have immense demand in Russia,” he said.
Demidov said multilateral cooperation in several areas, between Pakistan, Russia andCentral Asia Republics, was also workable. Bilateral cooperation in education was continued and Pakistani students could also avail Russian scholarships programmes, said he. During talks with Demidov, KCCI President Muhammad Haroon Agar urged Islamabad and Moscowto expedite their arrangements leading to the signing of PTA.
Agar noted the dire need of Pak-Russian inter-governmental arrangements to develop direct shipping and air links as well as establish banking channels to multiply bilateral trade.
He said during the last 64 years Pakistan’s economic relations had largely been American and west oriented with aid being its main focus instead of easing market access, transfer of technology and investment. Recalling Pak-Russian cooperation in the past, the KCCI president emphasized that the two countries should replicate their past cooperation on the lines of PSM in areas like heavy machinery, engineering, automobiles, revamping railways, energy from coal, corporate farming, mining, health, education and others.
Agar said with the multilateral cooperation of Central Asian Republics, Russian trade could be facilitated from Pakistani ports to other countries. On the occasion, Former KCCI President Majyd Aziz hoped that Putin’s visit to Pakistan would open new chapters of bilateral relations.
Aziz said to cater national transportation requirement, particularly for cargo movement, Pakistan should also benefit from Russian automobiles particularly, trucks and heavy vehicles used in logistics.
A paradigm shift is required from trade of commodities to machinery and equipment, he said adding that Russian investors could invest in Special Economic Zones and construct their own enclaves as President of Pakistan had signed the Special Economic Zones Bill.
