Pak-Russia should establish direct banking channel to boost trade

KARACHI: Trade representative of the Russian Federation Yury Kozlov has said that Russia and Pakistan should establish direct banking channel to enhance bilateral trade.

Exchanging views with members of the Karachi Chamber of Commerce and Industry (KCCI) on Wednesday, Yury Kozlov agreed to the chamber’s concerns over the lack of direct banking channel, and said its absence was a problem which has to be addressed by the two sides.

He said trade and investment cooperation between Pakistan and Russia has been improving, but it was not that robust hence, both countries should explore more areas of cooperation in different sectors of the economy.

Yury Kozlov pointed out that Russia was keen to enhance trade and investment cooperation in numerous sectors, including the energy sector, construction and industrial machinery, mines, metallurgy, railways engineering, pharmaceutical products, medical equipment, LED lighting systems, fertilisers and chemicals, water management and irrigation facilities, unmanned aircrafts, drones, and food products.

He said they have witnessed improvement in exchange of trade delegations between the two countries, and more such delegations were required to enhance the existing trade and investment cooperation.

He advised the Karachi Chamber to line up trade delegations to Russia to explore opportunities and improve ties with their counterparts. Kozlov said Russia was already cooperating with Pakistan in the construction of North and South gas pipelines, and was also engaged at Jamshoro Power Plant, “but this cooperation has to be expanded to other sectors as well.”

While handing over a CD carrying presentations of 150 Russian companies to KCCI president, Kozlov said that all these companies were keen to explore opportunities in Pakistan.

Earlier, KCCI president Muffasar Atta Malik, while welcoming the Russian trade representative, said the Karachi Chamber of Commerce and Industry was keen to strengthen trade ties and explore new bilateral trade prospects with Russia. “We strongly believe that Pakistan’s improved relations and enhanced trade with countries like Russia would help deal with numerous economic challenges being faced by the country, and prove to be beneficial for both the countries,” he added.

He was of the view that after Russian accession to the WTO, ample opportunities for enhancing trade will emerge between both countries. Malik said many countries have been taking keen interest in China-Pakistan Economic Corridor (CPEC), which would lead to improved regional economic integration.

He also informed that it provides tax holiday of up to 10 years to foreign investors. “The Russian investors must also take advantage of the situation by either investing or undertaking joint ventures in CPEC-related projects,” he said. Pakistan can also seek Russian assistance in the field of communication, irrigation, atomic energy, transport and infrastructure, etc.