The Pakistani businessmen that took the Russian government to court over a trade dispute are said to have conditionally agreed to withdraw their cases, meeting a longstanding demand of Moscow that seeks resolution of the row before committing new investments in Pakistan.
“The parties to the dispute have expressed their inclination to an early settlement,” said Board of Investment Chairman Miftah Ismail.
He was giving a briefing to a committee constituted by Prime Minister Nawaz Sharif to settle longstanding trade issues between Pakistan and Russia. The committee, headed by Finance Minister Ishaq Dar, met here on Monday.
Ismail said he had met with the Pakistani businessmen who were party to the litigation in court. Negotiations with them were in a clear shape and proposals would be communicated to the Russian side in a few weeks, he said.
The 15-year-old claims by Pakistani investors against Moscow have impeded efforts to seek Russian investment in the railways, oil and gas exploration and steel manufacturing. The decision of the investors to take the Russian government to court over a private dispute annoyed the Kremlin.
The claims were mostly related to freight charges. Seven parties had filed the cases, one opted out and the rest were still pursuing the cases to recover the money.
Pakistani courts have seized $124 million worth of Russian deposits that Moscow insists should be released soon, according to officials. “Businessmen have agreed to withdraw their cases, if the Russian government accepts their demands,” said an official, who is dealing with the businessmen.
He saw bright chances of an amicable solution as Russia had already communicated five principles that Pakistani authorities had accepted for entering into negotiations.
“We need to move on a fast-track (basis) for resolution of the outstanding financial dispute, enabling Russian investors to bring in their capital and explore areas where they can help,” an official handout quoted Finance Minister Ishaq Dar as saying.
During the huddle, Commerce Minister Khurram Dastgir Khan emphasised the importance of a definite timeframe for settling the row and said the commerce ministry was making vigorous efforts.
The dispute was an impediment to increased cooperation between the two sides in energy production and infrastructure development, he said.
The finance minister called for stepping up efforts to break the impasse that had blocked smooth trade between the two countries. He declared that the leaders of both countries had expressed their determination to address the issues and deepen trade relations.
He underlined the need for a fast-paced resolution of the outstanding financial dispute, paving the way for Russian investors to pump capital into Pakistan and explore the areas in which they could offer assistance.
The minister suggested that all the ministries concerned should be on the same page and work for resolution of the issue. “The solution should be a win-win situation for both the Russian government and Pakistani businessmen.”
He stressed that any arrangement agreed by both the parties should be implemented with full commitment and the matter should be brought to a close at the earliest.
Published in The Express Tribune, July 8th, 2014.
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I guess before establishing business ties with India, we need Russian Market which is more pivotal to our economy.
By resolving of this long festering problem govt can attract massive investment from Russia, like it has done from China. Great Initiative.