November 9, 2019, According to recent Statistics from the agreement between Pakistan and Russia. While, Pakistan has decided to sign an agreement with Russia to end a 39-year trade disagreement, which Islamabad expects that it will allow Moscow to invest over USD 8 billion in the cash-strapped country.
Furthermore, the trade dispute, which goes back to the days of the Soviet Union, involves USD 117 million and many unsuccessful efforts have been made in the past to end the dispute. Pakistan will give back the total amount of USD 93.5 million to Russia within 90 days of the signing of the agreement and clear pending exporters’ claims amounting up to USD 23.8 million as per the settlement agreements reached in 2016-17.
The trade dispute badly pretentious the relations between Russia and Pakistan and it is hoped that the settlement would open doors for enhanced two-pronged political, economic and diplomatic relations between the two countries. While the report said that Russia has carried to Pakistan that it would invest USD 8 billion in Pakistan’s energy sector and the Pakistan Steel Mills. But according to Russian law, it cannot invest in countries with which it has disputed. But the deal will qualify Russia to invest in different sectors in Pakistan.
Moreover, about the history of the case, the then Soviet Union used to buy textiles and other materials from Pakistan in the 1980s. For this purpose, the USSR opened two bank accounts in the National Bank of Pakistan (NBP), with funds getting deposited in the accounts by the Economic Affairs Division through State Bank of Pakistan. After the disintegration of the Soviet Union, some export payments were left unpaid and the trade dispute got prolonged. Pakistani companies got stay orders in the Sindh High Court, barring the NBP from transferring funds of Russian banks held in its two accounts since 1996.
Furthermore, the quantity preserved in the two financial records with the NBP is sufficient to pay off USD 93.5 million to Russia as well as clear the pending claims of exporters to the tune of USD 23.8 million, as the report presented. Pakistan’s relations with Russia have moved past the bitter Cold War hostilities in recent years. Islamabad has shown eagerness to build military-to-military level ties with Moscow.
In July 2019 Gen Oleg Salyukov, the Commander-in-Chief of the Land Forces of Russia visited Pakistan. In August 2018 Deputy Defense Minister of Russia Col Gen Alexander Fomin visited Pakistan to contribute in the first Russia-Pakistan Combined Military Consultative Committee meeting on security and defense. Moreover, From Pakistan Army chief Gen Qamar Javed Bajwa also visited Russia in April 2018, to solve and discuss the betterment plans.
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