The volume of bilateral trade between Pakistan and Russia is less than the scope
Islamabad … News Time
Pakistan has always relied on the United States, the European Union and the Middle East for trade because the textile products are exported in large quantities to these countries. Pakistan Tehreek-e-Insaf government is trying to increase frozen exports and reduce imports to reduce trade deficit. Russia is a big market in this regard, which Pakistan needs to pay attention to. Addressing the Lahore Chamber of Commerce and Industry, Russian Trade Representative Yury Kozlov said the volume of bilateral trade between Pakistan and Russia is less than the scope.
He said that cooperation was needed to increase bilateral trade. Due to the limited trade volume between the two countries, there are a number of constraints such as lack of banking and payment channels, high tariffs, strict terms of Russian business visas, lack of direct passenger and cargo flights, long delays in reaching shipment. Despite all these obstacles, the trade between the two countries has increased substantially, which is a positive sign.
Nasir Hamid, Trade Wing Minister of the Pakistani Embassy in Moscow, said that Pakistani exports to Russia have been increasing since 2017. Exports were $ 280.69 million in 2017 and $ 313.57 million in 2018. Russia exported $ 257 million in seven months of the current fiscal year, up 20 percent from the same period last year. Major exports to Russia include textile products, fruits and vegetables, sports goods, leather products and more. Pakistan imports iron and steel, vegetables (peas and gram), mineral oils, paper and cardboard, organic and inorganic chemicals, pharmaceutical products and more from Russia.
To enhance bilateral trade, the banks and payment channels of both countries can open branches in each other’s countries. Pakistan’s IT sector has been developing for the past few years. Russia could prove to be a good market for Pakistani IT companies. Similarly, there are huge opportunities for cooperation in the tourism sector. Russian small and medium-sized companies prefer locally bargaining and buying products. If Pakistani export organizations open their offices in Russia, it may be possible to increase Pakistani exports to Russia. In addition, the Pakistani government should also intensify its efforts to enter into a free trade agreement with Russia.
