Russia earmarks $7 billion investment
Russia has reportedly earmarked $7 billion as investment in Pakistan in energy sector, expansion and rehabilitation of Pakistan Steel Mills (PSM), roads and Pakistan Railways, well informed sources told Business Recorder. During the last few months, Pakistan and Russia have come close to each other. Both sides discussed prospects of a number of projects in bilateral meets in Moscow and Islamabad.
Presently, Finance Minister Ishaq Dar and Chairman Board of Investment (BoI) Mifta Ismail are the two key top government functionaries who are dealing with bilateral economic affairs including the most controversial decades old issue of stuck up payment of Pakistani exporters at the time of break-up of Soviet Union. Pakistan has also requested Russia to lift ban on export of Pakistani potato and Kinnow as Moscow had stopped import of "substandard" potato and Kinnow. According to sources, both Pakistan and Russia recently expressed their determination to remove all impediments in the way of finalisation of plans and projects mutually agreed upon.
"I believe that the quality of Pakistani potato and Kinnow was not good due to which Russia imposed a ban, however, now Pakistani potato is being exported to Russia," said an official on condition of anonymity. The sources revealed that Pakistan is sending a delegation to Russia next month to sort out issues related to agriculture products. In reply to a question, the sources said, the withholding of payment by exporters had nothing to do with the Government of Pakistan (GoP) as exporters of both countries were doing business at a private level.
"Pakistani exporters made the GoP and the Russian Federation parties to the payment issue and the court restrained release of $110 million from Russia's NBP account which was a loan of Russian government to be used for PSM, Kot Addu Power Thermal Power Plant, Muzaffarghar and Guddu Thermal Power Plant," the sources added.
The file of exporters' case comprises 17 volumes but no solution is in sight, the sources continued. Pakistan and Russia signed agreements in 1999 and 2005 on this issue which were not implemented. Russians maintain that they are ready to trade with Pakistan but first their withheld amount of $110 million should be released. Presently, trade between Pakistan and Russia is around $200-300 million. Finance Minister Ishaq Dar has assigned Chairman BoI Miftah Ismail to resolve the payment issue between Pakistani exporters and Russia.
Both countries are willing to cooperate in various projects in the fields of oil and gas exploration, construction of floating LNG terminals, North-South gas pipeline from Gwadar to Nawabshah, sharing of seismic and geological data, Enhanced Oil Recovery, LPG processing facility and gas purification plants, modernisation of oil and gas infrastructure, innovative technology solutions in coal industry, and building/renovation of various power generating units in Pakistan, especially those of Russian origin. Major Russian companies in the energy sector, including Technopromexport, Rostec-Global Resources, Rushydro International, Power Machines, Inter RAO, United Engine Corporation, and Stochinsky Institute of Mining, have shown a keen interest in co-operation with Pakistan.
Russia earmarks $7 billion investment | Business Recorder
Russia has reportedly earmarked $7 billion as investment in Pakistan in energy sector, expansion and rehabilitation of Pakistan Steel Mills (PSM), roads and Pakistan Railways, well informed sources told Business Recorder. During the last few months, Pakistan and Russia have come close to each other. Both sides discussed prospects of a number of projects in bilateral meets in Moscow and Islamabad.
Presently, Finance Minister Ishaq Dar and Chairman Board of Investment (BoI) Mifta Ismail are the two key top government functionaries who are dealing with bilateral economic affairs including the most controversial decades old issue of stuck up payment of Pakistani exporters at the time of break-up of Soviet Union. Pakistan has also requested Russia to lift ban on export of Pakistani potato and Kinnow as Moscow had stopped import of "substandard" potato and Kinnow. According to sources, both Pakistan and Russia recently expressed their determination to remove all impediments in the way of finalisation of plans and projects mutually agreed upon.
"I believe that the quality of Pakistani potato and Kinnow was not good due to which Russia imposed a ban, however, now Pakistani potato is being exported to Russia," said an official on condition of anonymity. The sources revealed that Pakistan is sending a delegation to Russia next month to sort out issues related to agriculture products. In reply to a question, the sources said, the withholding of payment by exporters had nothing to do with the Government of Pakistan (GoP) as exporters of both countries were doing business at a private level.
"Pakistani exporters made the GoP and the Russian Federation parties to the payment issue and the court restrained release of $110 million from Russia's NBP account which was a loan of Russian government to be used for PSM, Kot Addu Power Thermal Power Plant, Muzaffarghar and Guddu Thermal Power Plant," the sources added.
The file of exporters' case comprises 17 volumes but no solution is in sight, the sources continued. Pakistan and Russia signed agreements in 1999 and 2005 on this issue which were not implemented. Russians maintain that they are ready to trade with Pakistan but first their withheld amount of $110 million should be released. Presently, trade between Pakistan and Russia is around $200-300 million. Finance Minister Ishaq Dar has assigned Chairman BoI Miftah Ismail to resolve the payment issue between Pakistani exporters and Russia.
Both countries are willing to cooperate in various projects in the fields of oil and gas exploration, construction of floating LNG terminals, North-South gas pipeline from Gwadar to Nawabshah, sharing of seismic and geological data, Enhanced Oil Recovery, LPG processing facility and gas purification plants, modernisation of oil and gas infrastructure, innovative technology solutions in coal industry, and building/renovation of various power generating units in Pakistan, especially those of Russian origin. Major Russian companies in the energy sector, including Technopromexport, Rostec-Global Resources, Rushydro International, Power Machines, Inter RAO, United Engine Corporation, and Stochinsky Institute of Mining, have shown a keen interest in co-operation with Pakistan.
Russia earmarks $7 billion investment | Business Recorder
