Pakistan and Russia usher in new era of cooperation

Both countries sign agreements, vow to work closely in completing projects

ISLAMABAD:

Pakistan and Russia on Friday expressed their resolve to strengthen defence and economic ties besides cooperating in regional matters, as a fast-changing regional security situation warms relations between adversaries of the cold war era.

Russian Federation’s Federal Drug Control Service Director and Russia-Pakistan Inter-Governmental Commission (IGC) Co-Chairman Victor P Ivanov acknowledged Pakistan’s role in regional stability.



“Both countries would hold joint navy exercises next month, underscoring the growing cooperation,” he said.

He appreciated Pakistan’s stance on Ukraine and Syria, and on behalf of Russia, offered MI-35 helicopters to curb drug trafficking.

Ivanov, along with Minister of Finance Ishaq Dar, announced scores of measures both countries would take to strengthen bilateral ties in areas of defence, industry, finance, transport and energy. The Russian Co-Chair also proposed having direct air link between Moscow and Pakistan.



“Both sides have also decided to set up five working groups on industry with a focus on Pakistan Steel Mills (PSM). There will be a finance and banking group, food and agriculture group, transport and logistics group and education group,” announced Dar while sharing outcomes of the two-day meeting with IGC.

In recent years, Pakistan that sided with the United States in cold war era has decided to improve its relations with Russia.

“Political will to improve relations is now being translated into economic cooperation and building projects,” said Ivanov, while addressing a press conference. “The primary task for both countries is to implement the North South Gas Pipeline project by ensuring supplies from Russia.”



Dar also appreciated Russia’s largest investment in Pakistan through Inter-Government Agreement on North South Gas pipeline on October 16, 2015. “Pakistan wants to complete the $2-billion North South Gas pipeline project by December 2017,” said Dar.

“Our countries believe in peaceful regional moves,” said Ivanov.  He said Pakistan and Russia shared common views on Afghanistan and threats to regional peace like extremism and drug trafficking require close coordination between both countries.

Both countries signed two agreements on dispute settlement over $117 million Russian deposits and cooperation in science and technology besides setting new timelines to reach agreements on over a dozen projects and areas.

“Pakistan desires to strengthen diplomatic and economic ties with Russia and now we have a clear roadmap in front of us,” added Dar.



“Both countries have decided to share information to choke terrorism financing and combat money laundering,” said Economic Affairs Division Secretary Tariq Bajwa. “Russia has offered to supply Pakistan Sukhoi Super Jet (SSJ-100) prototypes and Jet airliner Irkut MC21.”

Pakistan sought Russian cooperation in power generation, textile, construction, LNG, oil & gas and petrochemical sectors. Dar offered to set up a ‘Special Economic Zone’ exclusively for Russian investors.

Both sides also agreed to begin talks for Preferential Trade Agreement (PTA), terming the current volume of bilateral trade a “little disappointing”. Russia also showed interest in becoming a partner in four-nation Central Asia-South Asia 1000 electricity supply project. Russia wants to supply power through CASA transmission line during winter season when energy supplies from CASA partners will not be feasible.

To cement cooperation in the power sector, it has been decided that a joint coordination committee will be set up to follow progress on projects that have been picked for Russian investment. “Russia may finance seven mega energy sector projects,” said the Water and Power Additional Secretary.



“The 1,200MW Guddu power project, 600MW Jamshoro power plant, exploration of Thar coal blocks 8, 9 and 10, setting up Hubco power transmission line and Thar-Lahore power transmission line and providing machinery for Dasu and Tarbela hydro power projects are the projects that have been finalised for seeking Russian investment,” he said.

Published in The Express Tribune, November 21^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.