Pakistan settled a 40 year old trade dispute with Russia, paying Rs1,442bn

Pakistan has settled a 40 year old trade dispute with Russia as Islamabad has paid an amount of $93.5 million (Rs1,442 billion) to Moscow.

The issue was a major hurdle in boosting Pakistan trade ties with Russia.

The dispute resolution is likely to improve trade between the two countries, an official said on Tuesday.

According to the official, the payment of $93.5 million against the Russian exporters’ claims pending since the disintegration of the Soviet Union would now pave the way for billions of dollar investments by Russian investors in Pakistan.

Last year, the government had authorized its Ambassador to Russia to sign the deal.

Under the agreement, the Pakistani government bound to return $93.5 million to Russia within 90 days.

Islamabad was liable to clear pending exporters’ claims to the tune of $23.8 million as per the settlement agreements reached on October 6, 2016 and December 27, 2017.

Russia had late last year said it was willing to expand cooperation with Pakistan on multiple fronts, including the industrial sector, agriculture, energy, medicine and railways.

The remarks made by Russian Trade Minister Denis Valentinovich Manturov during the sixth meeting of Pakistan-Russia Inter-governmental Commission on Trade, Economic, Scientific Technical Cooperation at the Foreign Office in Islamabad.