https://sputniknews.in/20230622/pakistan-barter-decree-to-boost-trade-with-russia-other-nations-amid-sanctions-commerce-minister-2606553.html
Pakistan Barter Decree to Boost Trade With Russia, Other Nations Amid Sanctions: Commerce Minister
Pakistan Barter Decree to Boost Trade With Russia, Other Nations Amid Sanctions: Commerce Minister
Sputnik India
Pakistan has launched a barter agreement for conducting business with Afghanistan, Iran and Russia, as they face issues using the regular banking channels.
2023-06-22T11:08+0530
2023-06-22T11:08+0530
2023-06-22T11:08+0530
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A few weeks ago, a direct trade route was launched between Russia and Pakistan when a ship docked at Karachi port carrying a large quantity of Russian crude oil. Syed Naveed Qamar, Pakistan’s Federal Minister for Commerce explained to Sputnik how Islamabad could benefit from this trade deal and budding bilateral relations in general.According to him, Pakistan has launched a barter agreement for conducting business with specific countries that face issues using the regular banking channels. At present these include Afghanistan, Iran and Russia, but it may later on spread to other nations as well.Shedding some light on whether this special decree that allows barter trade with Iran, Russia and Afghanistan is an attempt to reduce dollar transactions, the federal minister underlined that it is more than that because it aims to address issues that Pakistan faces in regards to the financial transactions.Talking about whether there is an interest to conduct transactions in other currencies, Qamar told Sputnik that Pakistan transacts in a number of currencies depending on the market in question and the agreement with the other side.As an example he said that the recent oil deal with Russia was conducted in the Chinese yuan, and although previously Pakistan was primarily trading in dollars, its portfolio is expanding and based on this development it can be said that Pakistan is now trading in other currencies also.Whether Pakistan will use Chinese yuan in transactions with Russia in the future, the minister said that it was an agreement for one deal so far, hence, Pakistan has a choice and will not limit itself to any particular currency.Discussing the rise in demand for Russian oil, he explained that Pakistan has various sources for oil supplies and Russia is one of them, "although we haven’t used it in the past, we can use it in the future," the politician said.It is noteworthy to mention that despite the sanctions, trade in dollars between Pakistan and Russia has been substantial in the past one year.Therefore, the growth amounted to 34% or $193 million.The politician said that although trading in dollars was "quite difficult" for Russia due to the Western sanctions, there would be other ways as “this is not government-to-government transactions, but rather private sector dealings. They may be dealing in any currency,” Qamar told Sputnik.Looking at Pakistan’s foreign policy and rapprochement with Russia, he explained that his country has always pursued a friendly policy towards all countries of the world, including China and the Western states.Evaluating Pakistan’s relations with Russia at the trade and economic levels, as well as at the political level, he underlined that Russia is an important country of the world and Pakistan always wants to have relations with it.“At present it is being expressed through trade interests also and I believe that there is a very promising future for both the nations,” the minister concluded.
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Pakistan Barter Decree to Boost Trade With Russia, Other Nations Amid Sanctions: Commerce Minister
Exclusive
In an exclusive conversation with Sputnik, Pakistan’s Federal Minister for Commerce, Syed Naveed Qamar, said that future trade deals with Russia could be done via a barter scheme or non-dollar currencies.
A few weeks ago, a direct trade route was launched between Russia and Pakistan when a ship docked at Karachi port carrying a large quantity of Russian crude oil.
Syed Naveed Qamar, Pakistan’s Federal Minister for Commerce explained to Sputnik how Islamabad could benefit from this trade deal and budding bilateral relations in general.
“Russia is a very big market and Pakistan has historically traded with Russia, but due to previous political circumstances some of these trade links had begun to diminish. However, recently a number of things materialized, and not just the trade route,” the minister told Sputnik.
According to him, Pakistan has launched a barter agreement for conducting business with specific countries that face issues using the regular banking channels. At present these include Afghanistan, Iran and Russia, but it may later on spread to other nations as well.
“We also signed a trade facilitation agreement with Russia, during my visit to Kazan about three weeks ago, which gives us concessions on our exported goods. So there are a number of concepts including the oil deal, which will surely increase the amount and volume of trade between Pakistan and Russia,” Qamar said.
Shedding some light on whether this special decree that allows barter trade with Iran, Russia and Afghanistan is an attempt to reduce dollar transactions, the federal minister underlined that it is more than that because it aims to address issues that Pakistan faces in regards to the financial transactions.
“Since the SWIFT system we have to go through a certain process and these transactions with Russia have become difficult for our country. That's the reason why our trade has been suffering,” the minister said. “We seek this opportunity as now there would be no need to use dollars or any currency for that matter, when trading goods. After all, a barter agreement reduces the use of any currency, not only the dollar, but also the euro, pound sterling and so on,” he added.
Talking about whether there is an interest to conduct transactions in other currencies, Qamar told Sputnik that Pakistan transacts in a number of currencies depending on the market in question and the agreement with the other side.
As an example he said that the recent oil deal with Russia was conducted in the Chinese yuan, and although previously Pakistan was primarily trading in dollars, its portfolio is expanding and based on this development it can be said that Pakistan is now trading in other currencies also.
Whether Pakistan will use Chinese yuan in transactions with Russia in the future, the minister said that it was an agreement for one deal so far, hence, Pakistan has a choice and will not limit itself to any particular currency.
Discussing the rise in demand for Russian oil, he explained that Pakistan has various sources for oil supplies and Russia is one of them, "although we haven’t used it in the past, we can use it in the future," the politician said.
It is noteworthy to mention that despite the sanctions,
trade in dollars between Pakistan and Russia has been substantial in the past one year.
“The total volume of bilateral trade between Pakistan and Russia was $760.5 million in 2022-2023 (July-May), up from $567.5 million in the same period of the previous year,” the minister underlined.
Therefore, the growth amounted to 34% or $193 million.
The politician said that although trading in dollars was "quite difficult" for Russia due to the Western sanctions, there would be other ways as “this is not government-to-government transactions, but rather private sector dealings. They may be dealing in any currency,” Qamar told Sputnik.
Looking at Pakistan’s foreign policy and rapprochement with Russia, he explained that his country has always pursued a friendly policy towards all countries of the world, including China and the Western states.
“Our largest trading partners continue to be the US, EU and UK. Nevertheless, Pakistan cannot be a serving country that is tied only to this or that bloc of the world,” the minister stressed.
Evaluating Pakistan’s relations with Russia at the trade and economic levels, as well as at the political level, he underlined that Russia is an important country of the world and Pakistan always wants to have relations with it.
“At present it is being expressed through trade interests also and I believe that there is a very promising future for both the nations,” the minister concluded.
