Putin''s visit to Pakistan: Currency swap, banking deals likely to be signed

Pakistan and Russia are expected to sign agreements on currency swap and opening of bank branches in the two countries during the visit of President Vladimir Putin, scheduled to arrive in Islamabad on October 2 this year, officials told Business Recorder on Wednesday. Russian President''s visit will be the first-ever highest level bilateral visit from the Russian side, during which 12 agreements will be signed between the two countries.
The list of pacts to be inked during the visit of Russian President are as follows: (i) Muzaffargarh and Guddu thermal power plants;(ii) Thar Coal project;(iii) Kandra gas thermal power plant;( iv) Tarbela-IV extension project;(v) currency swap arrangements;(vi) opening of bank branches;(vii) assistance to the Heavy Mechanical Complex(HMC);(viii) assistance to the State Engineering Corporation (SEC);(ix joint ventures in auto sector( manufacturing of spare parts); (x) partnership in water sector;(xi) co-operation in agriculture sector and (xii) assistance to the National Centre for Rural Development(NCRD).
Sources said, the Presidency has directed all Ministries/ Divisions concerned to finalise agreements in consultation with the Ministry of Foreign Affairs. A meeting will be held in the Presidency this week to review progress made in the finalisation of proposed agreements. Both countries will also sign agreements on expansion of Pakistan Steel Mills (PSM), increasing its production capacity up to three million tons per year.
According to a proposed agreement, Russia will co-operate for BMRE (Balancing, Modernisation, Revamping and Expansion) of PSM as agreed. The Ministry of Production engaged its counterpart Ministry of Economic Development of Russian Federation to finalise modalities with regard to the BMRE and capacity expansion of PSM with the approval of the Cabinet. The sources said, after exchange of voluminous correspondence, a memorandum of understanding (MoU) was agreed between PSM and Russian Federation. The Board of Directors (BoD) of PSM discussed in detail the enclosed MoU in its meeting held on May 25 this year and approved it.
The MoU was also circulated among stakeholders. The Ministry of Law & Justice, Economic Affairs Division, Board of Investment, and Ministry of Commerce have approved/vetted the MoU whereas, the Ministry of Foreign Affairs, Ministry of Finance and the Planning Commission made certain observations, especially on inclusion of Article 4 in the MoU which relates to the settlement of outstanding debt of Pakistan with Russia. Iran-Pakistan gas pipeline project will also come under discussion between the Presidents of the two countries.