Both governments have reached a point of consensus in order to settle the 39 years old trade dispute between Russia and Pakistan. The dispute arises at the time of the Soviet’s collapse. The deal is expected to pave the way for investment up to 8billion Dollars in Pakistan by Russian Side. This deal is expected to be a fresh start for both counties. The dispute was put on hold for the last 39 years. The government of Pakistan has permitted its ambassador to sign a deal with Russia. As per the agreement, the government of Pakistan will pay back $93.5 million to Russia within 90 days after the signing of the deal. Pakistan must clear pending claims by exporters to the tune of $23.8 million according to the settlement that both sides reached.
Earlier the efforts to pursue the deal with Russia were ignited by the previous Pakistani government and the current government has decided to execute it.
The old trade dispute has pessimistically affected the ties between Russia and Pakistan and now both sides are pretty hopeful that the settlement would open new doors for improved bilateral political, economic and diplomatic relations between both sides.
Right after the dismantling of the Soviet Union, few export payments were left unpaid and with the passing time, the dispute got prolonged. Firms from Pakistan sides got stay orders in the Sindh High Court, thus forced the NBP for the transferring of funds to Russian banks in its two accounts since 1996.
Various attempts were made in the times of yore to sort out the quarrel but they remained unproductive. The malfunction to timely resolve the dispute harmfully affected relations between the two countries. An early friendly agreement between the two countries will thus pave the way for better bilateral political, economic and diplomatic relations.