Consumer goods products: $1.27 trillion Russian market offers big opportunity to Pakistan

The USD 1.27 trillion Russian consumer goods products market offers a big opportunity to Pakistan to increase its share in that market. To penetrate the Russian market, Pakistan Russia Business Council (PRBC) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has drawn up proposals, which would soon be submitted to the Ministry of Commerce (MoC).
Same proposals were presented by Mohammed Farooq Afzal, the Chairman, PRBC, at its meeting held at the Federation House here early this week where Consul General of the Russian Federation Andrey Vladimirovich Demidov was also present. Demidov assured the meeting that he has taken stock of the whole situation, including the proposals.
He found immense warmth towards the needs to develop and promote business interests of both the countries, he said adding that increased contacts between people on both sides would improve our perception which earlier in the cold war era had left behind bleak shadows. Things have changed and now we are committed more towards the economic growth through exploiting potential of bilateral trade.
The data and other details contained in the proposals definitely merit a significant increase in business. He assured the participants of the meeting that he would convey all the proposals to Moscow and would like that media people from both sides look forward to having increased interaction so that we could perceive each other in the present realities of international trading which is now the only way to advance economic interests.
President, FPCCI, Sultan Ahmed Chawla said Pakistan Steel Mills is a monumental gift from Russia. No developed country in the West and the US offered us heavy industry during the period when we did not have much comfortable diplomatic relations with the then Soviet Union.
He said the present trade level of less than half a billion dollars is highly dismal, which needs to be increased in terms of per capita trade between the two countries. Engr. Comrade, M. A. Jabbar, the Director of the PRBC, pointed out that Russia has a long history of liberal attitudes towards supply of services and transfer of technology with machines to developing countries.
He suggested to the Russian Consul General to consider a seminar jointly with the participation of the PRBC to analyse the cross-border flows of trade between Pakistan and Russia and between other countries and Russia. "What we can supply and what you are receiving from other countries, is the space to generate additional trade with the Russian Federation."
He said that as per International Trade Centre (ITC) exercise we could jointly find the gaps to do more business as well as identify the impeding blocks on the side of non-tariff barriers, technical barriers to trade and tariff barriers. Comrade Jabbar said that with such workshops and seminars, one could always make tangible recommendations to the governments of both the countries to ensure their policy making helps growth of business.
He suggested that as a member of policy board of Government of Sindh, he foresees a big share for the Russian Federation in the mining and manufacturing of coal based power generation. Sindh has already introduced projects in public-private partnership, which the Consul General should capitalise to understand and market in his own country. Since we are no more in a war situation with the Russian Federation, the Consul General should consider himself more an economic diplomat than anything else.
The business community of Pakistan appreciates the endeavours made at the government level by the two countries to establish profound politico-economic ties and perceives it as a visa of fresh opportunities to augment bilateral trade and economic rotations between Pakistan and Russia.
Mohammad Farooq Afzal underlined that the last several years witnessed substantial expansion of contacts between our countries both at high and people-to-people levels. The current positive trends give our two countries and people the opportunity to better understand each other, to exploit the existing potential to our mutual benefit. The sense of co-operation and mutual understanding which exists with Russia is of immense value to Pakistan.
He drew the Consul General's attention to the fact that Pakistan is the third largest textile exporting country in the world whereas Russia is the third largest textile importing country in the world after USA and EU. Faisalabad is the textile hub of Pakistan whereas Ivanovo is traditionally known as the textile capital of Russia.
These facts are providing tremendous opportunities for the promotion and development of textile trade between the two countries. He suggested to the business communities of both the countries to avail these opportunities and invited Russian counterparts to come to Pakistan to see at first hand the best quality of textiles in the world.
The achievements in the trade and economic fields are appreciable. In 2008-09, bilateral trade for the first time touched the level of more than USD 600 million. Russia exports to Pakistan chemical products, fertilisers, timber and paper, metal products etc, and imports from Pakistan textile and garments, rice, leather, sports goods, fresh fruits, surgical equipments and pharmaceuticals.
Afzal said the consumer goods market in Russia is of the level of USD 1.27 trillion and if a proper strategy is adopted, Pakistan could push its consumer goods exports to Russia up to USD one billion within a year. He requested the government and the private sector to come forward to work jointly in providing trade facilities on a huge scale and to initiate dialogue with the Russian government in removing the trade barriers, which are hampering our exports.
To enhance trade volume between the two countries the PRBC of the FPCCI has made some proposals for the MoC which, Chairman, PRBC hoped after implementation would make the required breakthrough in bilateral trade relations. The following strategy has been drawn up by the PRBC for the promotion of bilateral trade relations between Pakistan and the Russian Federation:
AWARENESS: Organizing meetings between the PRBC and trade associations in the presence of Russian trade representative, visiting chambers of commerce and industry at national level of both the countries for presentation about Russian/Pakistan market potential, disseminating information via internet, and seminars/workshops.
INTERACTION BETWEEN BUSINESS COMMUNITIES: A draft of an MoU between the FPCCI and the Russian Federation of Chambers of Commerce and Industry (RFCCI) is under process which, after finalisation from RFCCI, would be signed by the presidents of both the Federations in June 2010. This MoU will pave the way for a direct interaction between the business communities of both the countries, exchange of trade delegations, and formation of a joint chamber of a commerce and industry.