For promotion of trade: Pakistan looks to resolve dispute with Russia

Committee formed to settle old claims made by Pakistani investors.

ISLAMABAD:

In its desire to have balanced relations with major global powers, Pakistan has decided to resolve the long outstanding dispute of $76 million in claims against the Russian government, which has become a major stumbling block in the effort to further economic relations with the country.

The 15-year old claims by Pakistani investors against the Russian government have impeded efforts to seek its investment in the energy corridor which the PML-N government has envisaged.

Prime Minister Nawaz Sharif constituted a committee to resolve the dispute after Russia recently highlighted the issue with Pakistani authorities, according to officials from the Ministry of Finance. The government desires to have cordial relations with all major powers, particularly with Russia, they added.

The first meeting of the committee was held here at the Ministry of Finance, and was chaired by Finance Minister Ishaq Dar.



Dar gave the Ministry of Commerce one week to verify the $76 million worth of claims, the officials added. The claims mostly relate to freight charges.

Dar formed a sub-committee, headed by Secretary Commerce Qasim Niaz, to have a meaningful dialogue with all the stakeholders in the process and submit its proposal within a week.

The finance minister emphasised the importance of resolving the 15-year old trade-related dispute for taking a giant leap forward for removing the impasse in Pak-Russia trade relation, according to an official handout of the Ministry of Finance.

He said any progress made in resolving these issues will create a win-win situation for both parties and will remove the barriers to mutual trade that have held the trade relation between the two countries hostage for more than one and half decade.

Seven parties had made the claims against the Russians. One has opted out, while the remaining are actively pursuing the case to get their money recovered.

According to officials, the Russian government has recently written a letter to Pakistan, asking it to resolve the dispute if it was keen on deepening bilateral economic and commercial relations.

Due to the unpredictable nature of Pakistan-United States relations, the Foreign Office advised the Prime Minister to improve ties with Russia, the officials said.

Dar is said to have directed the Ministry of Commerce to act as an honest broker for the settlement of financial claims existing between the Russian government and the trade community of Pakistan, according to the statement. He said the Pakistani government should play a role of a facilitator instead of becoming a party.

He said the resolution of the financial disputes between the countries will give a positive signal to the Russian investors to bring their capital to Pakistan and the country will also be in a favourable condition to avail trade opportunities existing in the resource rich Central Asian States.

Russia enjoys greater influence over its former satellites and recently achieved a big diplomatic victory over European Union when it stopped Ukraine to enter the bloc of 27 nations.

Published in The Express Tribune, January 7^th, 2014.

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