To maintain independent and pragmatic foreign policies it is highly important for Pakistan that it must focus on economic stability, financial strength and self-reliance. Pakistan’s trade and economy depend mostly on America and Europe which now needs to be diversified. Pakistan now has to explore new markets for its exports and expand its exporting items range. In this perspective it is very important for Pakistan to focus on enhancing very good economic relations with Russia. Pakistan’s focus should be TRADE and NOT AID. Russia can help Pakistan in technology transfer by educating and training its youth which is 60% of its population in technical and emerging fields. Without strong technical and scientific base Pakistan cannot be developed and prosper.
It is a good news for Pakistanis specially for business communities that there is a great interest and sense among Russian leadership to develop strong economic and trade ties with Pakistan and recently it has sent a four years 2022-2025 road map for development of trade and economic cooperation including increase in bilateral trade turn over. Newly elected Prime Minister of Pakistan Shehbaz Sharif himself has a background of a successful businessman and entrepreneur and served as elected president of Lahore Chamber of Commerce in 1985. He is famous for his speedy development projects in Punjab while he was Chief Minster. He was elected as the Chief Minister of Punjab for the first time and was sworn in as 13th Chief Minister of Punjab on 20 February 1997 and again from 2008 to 2013 and third time 2013 to 2018. So he knows very well how important is economic development for Pakistan. He indicated that work on CPEC would get momentum and we hope that we would also focus to include Russia in CPEC and a strong partner of Pakistan in its economic development and trade relations.
The said Roadmap given by Russia will definitely stimulate and enhance economic activities will pave the way for technology transfer and Russian and Pakistani companies would join hands to cooperate to enhance trade ties. It will also enhance awareness among business communities of both the friendly countries about the opportunities and potential to enhance bilateral trade and investment. Industrial sector considering possibilities of supplies of assembled vehicles for state and private customers and implementation of the vehicle assembly project in Pakistan, Russian company Ulyanovsky Automobilny Zavod LLC (UAZ LLC) has shown interest in establishing a plant. Supplies of utility equipment, transportation management digital solutions, possibility of supplies of railway engineering products, possibility of supplies of un-interrupted power system, as well as, other converting equipment are an offer from Russia.
In the field of aviation industry with Pakistan , consideration of possibility of supplies and air space control, surveillance and communication systems, weather radars, M/S Almaz Antey JSC and Pakistan’s Civil Aviation Authority ( CAA) to cooperate with each other. Another sector where there is a great potential is Pharmaceutical products. Promotion of the products of Russian company OZON Pharmaceuticals LLC, supplies of Russian medicines registration process of DNA human insulin Rosinsulin in Pakistan and assistance in organizing an inspection by a specialized agency is on the cards. Russian organization Zovid Medsintz and DRAP will cooperate with each other in this field. Chemical Industry is another sector where chemical products are also part of this road map. Both countries have great potential to cooperate in the oil and gas sector, extraction of other mineral resources, pipeline construction, and related infrastructure. Both sides will extend cooperation in offshore projects of Pakistan as well as outside Pakistan. Joint projects in natural gas pipeline construction, Pakistan Stream (Karachi-Lahore) natural gas pipeline project Gwadar Nawabshah etc. OGDCL and Mari Petroleum Company Limited (MGPCL) from Pakistani side to cooperate with Russian Oil and gas companies. For logistics and procurement of large scale infra-structure projects in Pakistan, Russia Gazprom’s subsidiary Neft-Snabzheniye LLC and Pakistani companies will cooperate with each other. Russian company Zaruber hneft JSC and Pakistani company MPCL will cooperate in the implementation of joint projects for development of oil and gas fields in Pakistan and in third country. Rosgeo will undertake analysis of Pakistan mineral resources sector identify possible area of cooperation investment. Both sides will cooperate in expanding Pakistan mineral mining and processing business. Pakistan Petroleum Limited (PPL) through subsidiary Bolan Mining Enterprise (BME) and Russian mining companies will engage with each other. For LNG supplies to Pakistan Company PJSC NOVATCK will interact with Pakistan LNG Limited (PLL) and Pakistan State Oil (PSO). Russian side will invest in setting up refineries, Virtual LNG pipelines, onshore storage of LNG, strategic oil storage and strategic gas storage (underground storage in continuation of the Pakistan Stream Project). Russian company Gazprom EP international B.V will provide system of production facilities monitoring (SPFM) software for oil and gas field production facilities to Pakistan.
Pakistan and Russia relations are vital for the progress, prosperity, peace and development in the region. Pakistan needs Russian support in education, technical fields, energy, human development, tourism promotion as well as in defence. Pakistan sacrificed a lot in its fight against terrorism, extremism and hate mongers. It needs global support especially foreign investment to enhance its economic capability to generate employment for youth who are around sixty percent of its population. Both Pakistan and Russia missed excellent trade relations opportunities in the past and a huge mistrust was present between the two countries for decades. A lot of water has been passed under the bridge and there is a great sense present on both sides to forget past and look towards new realities and try to avail opportunities. Analysts find immense warmth towards this need and both sides are trying to develop long term relations and investment which is in the larger interest of people of both the countries. Strong bilateral trade between Pakistan and Russia and larger cooperation in other areas is the need of time and is vital for the prosperity and integrity in the region. Current trade volume is far below than its potential. Serious efforts are required to enhance bilateral trade volume up to US$ 4 billion within couple of years.
Russia has long history of bilateral attitudes towards supply of services and transfer of technology to developing countries. There is dire need to boost trade and identify implementing blocks on the side of non-tariff barriers, technical barriers in the way of bilateral trade. It could be foreseen in the new developments that there could be a big share for the Russian federation in the mining and manufacturing of coal based power generation. Last several years witnessed substantial expansion of contacts between both the countries; both at high and people to people levels. The current positive trends give two countries and people the opportunity to better understand each other to exploit the existent potential for mutual benefits.
Russia is the largest country in the world by area, covering more than one eighth of the world’s land area, it is 9th most populous country with over 150 million people. Its capital Moscow is the largest city in the world. The Russian economy ranks as the 12th largest economy by nominal GDP, and sixth largest by purchasing power parity. Russia’s extensive mineral and energy resources are the largest such reserves in the world, making it one of the world’s leading producer of oil, and natural gas globally. The country is one of the five recognized nuclear weapon states, is a permanent member of UN Security Council enjoying veto power status.
Russia is a great power as well as a regional power and has been characterized as a potential super power. It is member of G20, The Council of Europe, The Asia Pacific Economic Cooperation, and World Trade Organization. It is also one of the five members of Eurasian Economic Union.
Russia is a great power as well as a regional power and has been characterized as a potential super power. It is member of G20, The Council of Europe, The Asia Pacific Economic Cooperation, and World Trade Organization. It is also one of the five members of Eurasian Economic Union. The recent Russian display of interest in joining the China-Pakistan Economic Corridor (CPEC) guarantee that Russia is ready for a long-term engagement with Pakistan. Pakistan on the other hand is ready to welcome any regional country including Russia to become a part of CPEC project and reap the fruits of this game changing Endeavour which would not only help change the destiny of regional states, but also aid in complementing international trade and cooperation around the world. Apart from that, Pakistan, after analyzing the results of the first joint exercises and finding them to be very successful, sent a request to the Russian Defense Ministry with a proposal to coordinate a plan of events for 2017, which will include a series of joint exercises, exchange of observers and visits of high-ranking officials. The world is witnessing a new dawn in Pakistan-Russia relations. Ignoring Pakistan is no longer an option for Russia. Pakistan is a nuclear power, an emerging economy with a population larger than that of Russia. It can prove to be a good strategic partner in South Asia and provide easy and affordable access to the warm waters of the south (an access Russia has always desired). Pakistan and Russia share security interests of similar nature. Both the states share multiple bilateral and multilateral forums where they voice their concerns. For above mentioned reasons it is imperative for Pakistan and Russia to work in closer cooperation. But despite their will and desire to build better relations, there are obstacles to closer cooperation and Pakistan should be well cognizant of them. In the realm of international relations, there are no permanent friends and no permanent foes and for this reason Pakistan should work towards building good relations with Russia but Pakistan should also remain aware of political and geostrategic limitations of Russia. Pakistan should remain optimistic about improving Pak-Russian relations but should not over-estimate the amicable gestures by Russia. Pakistani and Russian security interests are increasingly intertwined, so Moscow cannot afford to ignore Pakistan. Both states should work in close cooperation to address newly emerging threats in the region.
ECONOMY
GDP (PPP) : $ 3.862 trillion
GDP (official exchange rate) $1.283 trillion
GDP per capita $ 26,900
Exports $ 286.9 billion
Export partners china 10.6% , Netherland 10.3% , Turkey 5%,
Italy 4.4%, Belarus 4.3%
Imports $191.6 billion
Trade Statistics with Pakistan
Year Exports Imports Total volume Balance of Trade US$ mn Total export of Pakistan$ billion % share in Pakistani exports Total import of Pakistan $ bn % share in Pakistani imports
2016 272.0 133.0 405.0 139.0 20.534 1.3 46.998 0.3
2017 280.0 261.0 541.0 19.0 21.91 1.3 57.518 0.5
2018 313.0 418.9 732.4 (105.3) 23.77 1.3 60.391 0.3
2019 370.3 168.7 539.0 (201.6) 23.81 1.6 50.511 0.3
2020 292.8 496.8 789.6 (204.0) 21.99 1.3 45.89 1.1
Source: SBP, BPS