Pakistan resolves trade dispute with Russia after paying Rs 1,442bn

ISLAMABAD: Pakistan has cleared a 40-year old trade issue with Russia as the federal government has disbursed an amount of $93.5 million (Rs1,442 billion) to Moscow.

A government official said the issue was a major barrier in promoting Pakistan trade ties with Russia, added that the dispute resolution is likely to further develop trade between the two countries.

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

Last year, the government had approved its Ambassador to Russia to sign the deal for resolving the dispute. Under the concurrence, the government of Pakistan bound to return $93.5 million to Russia within three months.

The government of Pakistan was responsible to clear pending exporters’ claims to the tune of $23.8 million as per the agreement reached on October 6, 2016, and December 27, 2017.

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.