Over 50 Russian companies mulling investing in Pakistan: trade representative

More than 50 Russian Companies are exploring opportunities for direct investment in Pakistan after the inking of $2 billion gas pipeline project from Karachi to Lahore, said Yury M Kozlov Trade Representative of the Russian Federation. Addressing the business community at Faisalabad Chamber of Commerce and Industry (FCCI) here on Tuesday, he said the governments of the two countries are already making positive efforts to strengthen bilateral trade relations and in this connection Karachi Lahore Gas Pipeline project is most recent development.
He hoped that it will play an important role in attracting other Russian companies to invest in other projects in addition to launching joint ventures with their Pakistani counterparts. He also termed Karachi Steel Mills as the hallmark of Pak-Russia economic relations and said that Russia has already constructed Muzaffargarh and Gaddu power stations and was thus playing its role in resolving the energy related problems of Pakistan.
He said that many Russian firms are also interested in large, medium and small ventures. No doubt the major projects will be launched with the understanding of the two governments while private investors could start small and medium projects in collaboration with local businessmen. He said that many Russian firms are also interested in oil and gas exploration projects in Pakistan while he will also encourage the Russian investors.
Quoting economic sanctions imposed by Russian Federation on some countries, he said that Pakistani exporters should come forward and fill up this gap by exploring particularly textile goods to the Russian markets. He also responded to the various questions raised by the FCCI members and said there are some financial and banking issues which would be resolved very soon at the government level.
Earlier, in his welcome address, President FCCI Chaudhry Muhammad Nawaz said that Pakistan and Russian Federation enjoy good economic relations and diplomatic ties since 1948. The trade volume of US $155.31 million in 2014 showed that Pakistan exports were US $135.40 million against imports from Russian Federation of US $20.91 million, thus balance of trade is in favour of Pakistan. He said that the share of Pakistan exports is very small as against the total imports of Russian Federation which are around 286 billion dollars. He said that the point of worry is that there was negative growth of 11% per annum from 2010-2014. He said that there are vast prospects of expansion of bilateral trade including joint ventures in Textiles, agro-based industry, live stock industry, leather goods, oil and gas, Information Technology and Tourism.
He said that Pakistan is known worldwide for all types of leather & leather products, organic as well as inorganic agro-based products & food items, sports goods & surgical instruments. "Pakistan could supply all types of textile goods such as ready-made garments, home textiles and knitwear (hosiery) items to Russian markets", he added.
Continuing, he said that power & gas sectors, where Pakistan is facing serious problems and needs Joint Ventures for IPPs and Russia being rich in oil and gas resources may come forward for joint ventures in hydel power projects including the run of the river type projects to resolve the energy crisis of our country.
He further said that it seems that there exists lack of communication which can be bridged through sector wise B2B meetings and sector specific information. He also suggested progressive banking channels between Pakistan and Russia to improve the trade volume particularly exports from Pakistan,
He said that Pakistan has 3rd largest reserves of coal and 5thlargest reserves of gold, mines and coppers in the world. "We are keen to invite the Russian investors to come here and exploit the vast untapped potential of Punjab particularly in the close vicinity of Faisalabad", he added. He said that there is also need of creating linkage between Moscow Chambers of Trade & Commerce with FCCI so that direct access is made available to both sides. He also underlined the need to proceed for signing of Free Trade Agreements between both the countries, which may prove one of the best ways to enhance volume of bilateral trade.
Senior Vice President FCCI Syed Zia Alamdar Hussain said that Russian Federation is importing food items worth 43Billion dollars and after economic sanctions, it could import textile goods in addition to potato, rice and Kinno from Pakistan. Similarly, Russian federation could also help Pakistan in the manufacturing of cheap and effective agricultural appliances to encourage and promote mechanized farming in the country.