Business & Economy

Russia Expands Crucial Supplies To Pakistan Amid Shifting Global Alignments

© PhotoThe meeting between Pakistan Prime Minister Shehbaz Sharif and Ambassador of the Russian Federation Albert P Khorev.
The meeting between Pakistan Prime Minister Shehbaz Sharif and Ambassador of the Russian Federation Albert P Khorev. - Sputnik India, 1920, 19.06.2024
Bilateral relations now reportedly seek to achieve a balanced approach that prioritizes economic benefits. A prime instance of this dynamic change can be seen in the strengthening economic ties between Russia and Pakistan over the past years.
Pakistan and Russia continue strengthening their economic relationships красный and expanding the scope of bilateral trade. Both countries have supplied a diverse range of goods since 2022, from wheat and oil to fruits, vegetables, leather goods, and technology.
Two-sided trade between the countries has reached $1 billion, for the first time, accroding to Russia's Ambassador to Pakistan Albert Khorev.
In March, Islamabad delivered 16 trucks of oranges to Russia via a land route. This event unveiled the growing collaboration between the two states.

Analyzing the Growth Potential in Trade Dynamics

Pakistan views Russia as an important and reliable commerce partner, spokespersons of the Pakistani Embassy in Moscow told Sputnik India. Wheat imports from Russia in 2023 amounted to a record 1.4 million tons, while oil purchase from the country is also significant, he added.

"So far four shipments of oil have reached Pakistan. Pakistan’s exports to Russia encompass a diverse range of products, including citrus, leather apparel, ready-made garments, potatoes, home textiles, woven cotton fabrics, surgical and medical apparatus, whereas, key imports from Russia to Pakistan consist of wheat and dried leguminous vegetables, bituminous coal, and similar solid fuels manufactured from coal," he highlighted.

Additionally, last year, Islamabad's major exports to Moscow included fruits, rice and salt, while in reverse export consisted of oil, grain, chemicals and fertilizers.

Improving Connectivity through Road and Sea Routes

Central Asian countries (CAR) provide a land route for trade between Russia and Pakistan.
From July 2023 to February 2024, Pakistan's exports to Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan increased 21%, reaching a total of $158 million, compared to $130.5 million during the same period in the previous years.
In this regard, member of Pakistani Embassy in Moscow told that Islamabad is looking into diversifying its catalogue of trade products, as well as payment methods for commerce.

"These are the two main factors that have provided impetus to bilateral trade. Additionally, a focus on improving connectivity via road and sea routes will play a further role in the future for even stronger bilateral trade ties" he further unveiled.

The expert added that a Road Transport Agreement between Pakistan and Russia exists since November 2022. Along with that a memorandum with the Russian Ministry of Transport on Cooperation in Railways sector was signed on the sidelines of St. Petersburg International Economic Forum (SPIEF) this month, he underscored.
However, the current economic partnership between the two states remains untapped, as Pakistan's policies, particularly its dependence on Western fronts, have created uncertainty in fully capitalizing on the potential economic opportunities available through the inter-country relationship.
Menawhile, the spokesperson explained that Pakistan looks forward to the next session of the Pakistan-Russia Inter-Governmental Commission, which is planned to be held in Moscow later this year. He believes this forum will provide further opportunities to take stock of existing trade ties and to explore future ventures in economic and commerce cooperation.
Russian President Vladimir Putin meets with Prime Minister of Pakistan Shehbaz Sharif on the sidelines of the Shanghai Cooperation Organisation (SCO) leaders' summit in Samarkand on September 15, 2022. - Sputnik India, 1920, 30.05.2024
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