Pakistan pays Rs14.42bn to Russia over trade dispute: report

Dispute resolution is likely to help improve trade ties between Pakistan and Russia, an official says

Photo: File

ISLAMABAD: Pakistan has settled a 40 year old trade dispute with Russia as Islamabad has paid an amount of $93.5 million (Rs14.42 billion) to Moscow, reported The News on Wednesday.

The issue was a major hurdle in boosting the country’s trade ties with Russia. The dispute resolution is likely to improve trade between the two countries, an official said on Tuesday.

Also read:Moscow willing to expand cooperation with Islamabad: Russian minister

According to the official, the payment of $93.5 million against the Russian exporters’ claims pending since the disintegration of the Soviet Union would now pave the way for billions of dollar investments by Russian investors in Pakistan.

Earlier last year, the government had authorised its Ambassador to Russia to sign the deal. Under the agreement, the Pakistani government was bound to return $93.5 million to Russia within 90 days.

Islamabad was liable to clear pending exporters’ claims to the tune of $23.8 million as per the settlement agreements reached on October 6, 2016 and December 27, 2017.

Also read:PM Imran Khan to visit Russia on President Putin's invitation: sources

Russia had late last year said it was willing to expand cooperation with Pakistan on multiple fronts, including the industrial sector, agriculture, energy, medicine and railways, Radio Pakistanhad reported.

The remarks were made by Russian Trade Minister Denis Valentinovich Manturov during the sixth meeting of Pakistan-Russia Inter-governmental Commission on Trade, Economic, Scientific Technical Cooperation at the Foreign Office in Islamabad.

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Note: An earlier version of this story erroneously stated the amount paid to Russia as Rs1,442 billion. The correct figure is Rs14.42 billion. The error is regretted.