Pakistan needs to draw up a balanced foreign economic policy and clinch a currency swap agreement with Russia while tapping the European nation's huge potential and safeguarding local economic interests as the world economic order is changing at a swift pace, economic negotiators and nationalists said.
"Other countries take care of their own economic goals, but unfortunately we are working to please someone else. We have no competent negotiators who can negotiate why we need Russian oil and its products," Pak-Russia Business Council-FPCCI's former chairman Muhammad Farooque Afzal said while talking to The Express Tribune.
"We need a balanced foreign economic policy and currency swap agreement with Russia to protect interests of the country instead of serving vested interests," the business leader said.
He pointed out that India was trading with Russia and China in their respective local currencies – rouble and yuan. If Pakistan inks a currency swap deal with Russia, it will be a big success.
"Despite heavy sanctions, India has become the largest oil importer from Russia and it is purchasing at a discount. Why are Pakistan's negotiators sitting idle? We just export textile products worth around $16 billion to the US and Europe," he said.
Pakistan ought to explore the huge market of Russia as the South Asian nation bristles with shining products and high-quality agricultural produce.
Russia has a huge potential as it imports textile products valuing at $72 billion including garments worth $42 billion. Pakistan hardly exports $40 million worth of textile products to Russia, though it can easily fetch $10 billion once it leverages the Russian market.
In the pharmaceutical arena, there is a huge $30 billion gap, which can be bridged by Pakistani companies. Pakistan is exporting medicines valuing at only $10 million. Similarly, Russia imports fruits, vegetables and meat worth $45 billion. Its imports of sports goods stand at $5.5 billion.
A meeting was recently held between Russia's Deputy Foreign Minister Sergei Ryabkov and Pakistan's Deputy Prime Minister and Foreign Minister Ishaq Dar in Islamabad. It was termed a timely, integrated, interactive and productive event that highlighted a valid alternative middle corridor and a vast economic and consumer market, which would be a value addition in the diplomatic balancing efforts.
Russia provides an opportunity for further diversifying trade destinations, forming joint ventures in steel and cement production as well as energy exploration, consolidating food security, acquiring modern military equipment and engaging in counter-terrorism cooperation to achieve the goals of regional peace, stability and harmony.
On top of that, it is a vivid reflection of a balanced foreign policy, rigorous economic diplomacy, positive political consultation, social cohesion and a joint resolve to counter the western hegemonic designs. Hence, further strengthening trade, economic, industrial, infrastructure, energy (oil & gas), digital and China-Pakistan Economic Corridor (CPEC) cooperation will be a step in the right direction.
The rapidly changing chessboard of power politics has encouraged Pakistan and Russia to gear up for further strengthening bilateral relations in diverse sectors of the economy, forge joint ventures and ensure food and energy security. They will also engage in infrastructure development, trans-regional transportation, climate change cooperation and steel ventures for mutual benefit, according to the economic nationalists and regional experts.
The 15th round of Pakistan-Russia Consultative Group on Strategic Stability highlighted the importance of enhanced socio-economic integration, trans-regional connectivity and energy cooperation.
The increase in bilateral trade above $1 billion, enhanced cooperation in liquefied natural gas (LNG) supplies and the Pakistan Stream Gas Pipeline project will play a significant role.
To pursue a long-term, multi-dimensional partnership spanning trade, energy, education, culture, security and people-to-people exchanges, bilateral trade may be enhanced through diversification, joint ventures in mutually preferential sectors mainly oil and gas, mineral and mining, fertiliser, textile and agricultural machinery.
Both countries could launch direct flights and cooperate in the IT sector, digitalisation, artificial intelligence, robotics, tourism, green technologies and modern technology.
Moreover, the establishment of trade houses in major cities and small and medium-sized enterprises, cooperation in banking and finance, optimal utilisation of Gwadar seaport under CPEC, development of joint special economic and free trade zones on the model of China, streamlining visa processes and single-country exhibitions will further boost bilateral ties.
Economic strategist and regional expert Dr Mehmoodul Hassan Khan said, "Our diplomatic staff posted in all Central Asian countries and Russia always remains discourteous, disconnected and disharmonious, giving a walkover to the Indian foreign missions.
"It seems that Pakistan's foreign missions always remain unfriendly and unproductive, contributing nothing for strengthening bilateral relations. They waste their energies and resources on self-projection, ceremonial activities and try to stay away from businessmen and investors."
He underlined the need for urgent transformation in diplomatic gestures, conducts and preferences along with appointment of regional experts, mainly in Moscow and the Central Asian region, which would gradually enhance bilateral ties and take them in the right direction.
Trade between Pakistan and Russia in FY24 consisted of exports at $78,904 and imports at $1,020,170. Pakistan's major export items were articles of apparel-cum-clothing accessories, leather, medical and surgical instruments, optical and others. Its imports comprised iron, steel, mineral fuels, electrical machinery and equipment and fertilisers.
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