ISLAMABAD: An agreement has been reached between Pakistan and Russia to sign a deal, that will settle a 39-year old exporters’ claims case that has been on hold since the collapse of the Soviet Union, which paved the way for an $8 billion investment by Russia in Pakistan.
The Pakistani government has authorised its ambassador to Russia to sign the deal. Under the agreement, the Pakistani government will return $93.5 million to Russia within 90 days of the signing and 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.
The efforts to sign the deal with Russia were kicked off by the previous government of the PML-N government and the incumbent regime has decided to execute it.
The trade dispute negatively affected the relations between Russia and Pakistan and it is hoped that the settlement would open doors for enhanced bilateral political, economic and diplomatic relations between the two countries.
After the disintegration of the Soviet Union, some exports payments were left unpaid and as the trade dispute got prolonged. Pakistani companies got stay orders in the Sindh High Court, barring the NBP from transferring funds of Russian banks held in its two accounts since 1996.
Many attempts were made in the past to resolve the dispute but they remained unsuccessful. The failure to timely resolve the dispute adversely affected relations between the two countries. An early amicable settlement between the two countries will thus pave the way for enhanced bilateral political, economic and diplomatic relations.
