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Russia Will Invest $8 Billion Dollars In Pakistan


Russia will invest 8 billion dollar in pakistan

Pakistan settles the Soviet-Era trade dispute with Russia. Pakistan had decided to settle a 39-year old exporters’ claims case pending since the disintegration of the Soviet Union with Russia. This will open new doors to the development of Pakistan by the investment of Russia in different sectors of the country. As per the officials, Moscow has conveyed to Islamabad that it will invest about $8 billion in different Pakistani sectors including the energy sector and Pakistan steel mills.

In order to sign the deal with Russia, the Pakistani ambassador has been authorized. Under this agreement, Pakistan will return $93.5 million to Russia within 90 days of signing and clearing exporter's claims. A similar effort were to sign a deal with Russia were rejected by the previous government of PML-N. The purpose of resolving the dispute was that the Russian government cannot invest in the countries with which it has a dispute as per Russian law.

Back in the 1980s, USSR and its companies had trade relationships with Pakistani companies. It used to buy textiles and other materials from Pakistan. USSR had opened two bank accounts in the National Bank of Pakistan. Economic Affairs Division (EAD) deposited the funds in the account but the disintegration of the Soviet Union left some exporters unpaid. Many Pakistani companies also claimed unshipped goods as they had paid freight charges. Many unsuccessful attempts were made in the past to solve the dispute. It affected the relationship between the two countries. An agreement of signed in the 3rd Pakistan-Russian Inter-Governmental meeting in November 2015 in which Islamabad agreed to return $93.5 million within 90 days of agreement. The chairman of the board of investment held a similar meeting in 2016 with exporters and negotiated the settlement of the agreement. The attempt failed despite the agreement because many Pakistani companies did not withdraw their cases from the court. Another meeting was held by the commerce division in October 2017 which was attended by all the stockholders.


By,
Hina Naz

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