Russian Trade Representative Yury Kozlov said that although there is a huge potential to boost the existing Pakistan-Russia trade volume yet it has been gradually improving mainly due to lack of direct banking channel "State Bank of Pakistan and the Central Bank of Russian Federation signed a Memorandum of Understanding (MoU) in January 2018 but the progress remains too slow.
Not much has happened since then, hence, the central banks both countries will have to act more energetically," he emphasized, speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI). Yury Kozlov said that the bilateral trade between Pakistan and Russia improved to US$660 million during 10 months of the current calendar year which is expected to reach around US$750 to US$800 million by year end.
"Russia is engaged in numerous projects and cooperating with Pakistan in the construction of north and south gas pipeline from Karachi to Lahore," he said, adding that his country also engaged in a project at Jamshoro Power Plant for production of 600MW. He further cited that Russia had offered assistance in the expansion of Pakistan Steel Mills while Russia's Gazprom has also evinced interest in financing Iran-Pakistan (IP) gas pipeline project.
He also handed over CDs carrying presentations of 200 Russian companies and details of the exhibitions scheduled to be held in Russia throughout the year. The Trade Representative said all these Russian companies were keen to explore opportunities in Pakistan. He urged the business and industrial community of Karachi Chamber to look into the possibility of participating in numerous trade exhibitions in Russia. He asked KCCI to send a trade delegation to Russia with a view to enhance the existing trade and investment cooperation between the two countries.
"We are not much interested in hosting trade delegations from Business Councils or Forums but we would like to see a business delegation from KCCI so that you explore trade opportunities and improve ties with Russian counterparts," he said. KCCI president Junaid Esmail Makda expressed concerns over nominal trade volume between the two countries which stood at around US$600 million in 2017 as Pakistan exported goods worth $280.69 million while the imports increased to $310.94 million.
"Bilateral trade between Pakistan and Russia is expanding but at a relatively slow pace and present trade volume does not reflect true trade potential between the two countries," he said. Highlighting the potential areas of enhancing cooperation between Pakistan and Russia, KCCI president said that oil and gas sector and heavy industries were the two promising areas for Russian investors.
He said Pakistan Steel Mills, which has unfortunately become the dark side of Pakistan's economy with zero production, can be turnaround through Russian assistance. In order to enhance exports to Russia, Pakistani food exporters can capitalize on the ban imposed by the Russian government on agricultural imports from European countries, he said, adding that Pakistan can export livestock, meat, apple, mango, citrus and seafood to Russian markets.
Makda stressed the need to sign a Memorandum of Understanding between the Karachi Chamber and Moscow Chamber which would improve business linkages and bring business communities of the two countries closer to each other.
Russia's Deputy Trade Representative Ruslan Aliev, KCCI vice president Asif Sheikh Javaid, chairman KCCI Subcommittee for Diplomatic Missions and Embassies Liaison Shamoon Zaki and Managing Committee members also attended the meeting.