ISLAMABAD: Pakistan is reportedly studying different modules of trade and business with Russia being adopted by regional countries, aimed at striking a “good deal” with Moscow at a high-level meeting to be held within a couple of weeks.

Deputy Prime Minister/ Foreign Minister Senator Ishaq Dar is likely to lead a high-level delegation to Moscow, the sources added.

Prime Minister Shehbaz Sharif recently met with Russian President Vladimir Putin in Astana on the sidelines of the SCO Summit, wherein, both leaders discussed issues of bilateral interest.

PM Shehbaz seeks barter trade revival with Russia in meeting with Putin

Sharing the details, sources said in compliance with the direction of the prime minister, the committee headed by Minister for Planning, Development and Special Initiatives Ahsan Iqbal is holding consultations with the concerned ministries to finalise the agenda to be discussed with the Russian leadership.

The Minister for Planning briefed that the purpose of the meeting is to make necessary preparations and development of roadmap for high-level visit to Russia in two weeks for engagements and bilateral cooperation in the areas of energy including hydel, thermal and electric power, oil and gas, Pakistan Steel Mill, agriculture, tourism, railways and banking.

According to the Ministry of Foreign Affairs (MoFA), Russia is an important country and has adopted the deliberate Asia focus approach in recent past. Therefore, Pakistan needs to capitalize on this tendency.

The political relations have improved over the time, and Russia is well cognisant of Pakistan’s issues and compulsions. The MoFA also advised to explore opportunities to have economic relations amid the sanctions and extra careful nature of the banking sector. The minister; therefore, suggested that the SBP should work out possible ways for trade with central bank of Russia.

Energy is one of the most important aspects of ties with Russia, and Pakistan can enhance purchase of oil and LNG supply from Russia. He informed the forum that Russia also offered to develop integrated gas plan for Pakistan. Secretary MoFA suggested that the 9th meeting of Pakistan-Russia Inter-Governmental Commission plan to be held in Moscow should be convened during 2024.

The secretary Ministry of Railways suggested that Quetta and Taftan Section may be pitched since a formal framework agreement for its upgradation with Russia stands signed.

The Minister for Planning recognised the importance of connectivity for efficient and cost effective trade relations with Russia and CARs.

The committee endorsed the proposal of the Minister for PD&SI for co-opting the Ministry of Communication/ NHA for the Committee. The Minister for Planning emphasised that focus should be on exports promotion and suggested that Pakistani business community be engaged for market access and to understand their issues.

The commerce secretary told the forum that Pakistan, China and Russia have signed a barter trade framework and Russia has official convey that a delegation will be visiting Pakistan in this regard. There is a strong case and potential for barter trade with Russia.

One of the committee members suggested that the committee should study Indian mechanism to deal with such issues by trading through 3rd country. He also highlighted the waivers granted to certain countries such as Turkiye and Azerbaijan by the USA.

The representative of Commerce shared that there exists Eurasian Customs Union and Russia being the Member of the Union may not take decision individually. He; therefore, proposed that we need to make efforts for inclusion in the Union.

The Minister for Planning showed concerns on low level of trade with Russia and stressed upon substantial increase while highlighting various potential sectors. The Minister for Commerce shared the trade statistics with the forum and identified various areas for enhancements of exports to Russia. The Minister for Commerce also stressed upon high end agri technology cooperation.

Minister for National Food Security and Research elaborated that Pakistan should explore opportunities for transfer of technology for mechanised farming and high quality seeds to ensure food security and enhance exportable surplus. The minister also underscored the export potential of rice and potatoes.

The Minister for Planning proposed that we should enhance cooperation in Science and Technology like space technology, seek scholarships from Russia on the line of Fulbright scholarships offered by USA and also urged to motivate mobile industry to enhance exports to the Russian market. The minister also emphasised to exploit the potential of tourism.

After detailed deliberations, the Committee took the following decisions with consensus: (i) Ministry of Commerce to prepare a detailed strategy paper to enhance exports to Russia; (ii) Ministry of Energy (Power & Petroleum) to prepare the roadmap for enhancing cooperation in the areas of energy including hydel, thermal and electric power, oil and gas, etc; (iii) Ministry of NFS&R to chalk out proposals highlighting areas of cooperation in the agriculture and livestock sector; (iv) Ministry of Industries and Production to chalk out proposal for industrial cooperation; (v) MoFA may request Pakistani embassies in countries having major trade with Russia to study their trade model; (vi) Ministry of Railways to expedite the modalities for upgradation of Quetta - Taftan Section; (vii) Governor SBP in collaboration with Central Bank of Russia to work out possible ways for trade and to do business; (viii) Ministry of IPC to develop plan for tourism promotion; (ix) MoFA to take up grant of scholarships to Pakistani students in science and technology and ICT with the Russian Federation; and (x) Secretary Ministry of Communication/ Chairman NHA, Secretary Ministry of Water Resources, Ministry of Inter-Provincial Coordination, will be Members of the Committee. (IPC), Secretary Ministry of Science and Technology/ Chairman SUPARCO co-opted as members.

Copyright Business Recorder, 2024