Pakistan has repaid a $93.5 million debt to Russia, thereby settling a longstanding trade dispute that had stretched back to USSR times, with the hope of opening up to Russian investments, media reported Wednesda
MOSCOW (Pakistan Point News / Sputnik - 26th February, 2020) Pakistan has repaid a $93.5 million debt to Russia, thereby settling a longstanding trade dispute that had stretched back to USSR times, with the hope of opening up to Russian investments, media reported Wednesday.
News portal Pakistan Today's business page, Profit, cited Additional Secretary at the Ministry of Commerce Javed Akbar as confirming that Pakistan had reimbursed Russia with the 40-year-old outstanding sum, following protracted negotiations.
According to Profit, Moscow had made clear that this dispute was the main obstacle in the development of fully-fledged trade and investment relations between the two countries, as Russian law prohibits investment in countries with trade disagreements with Russia.
Efforts to settle the disagreements began with the previous government under the Pakistani Muslim League but were finalized and greenlighted by the current cabinet of Prime Minister Imran Khan, according to the publication, which also reported that the Pakistan ambassador to Russia was authorized to sign the deal with Russia to repay the $93.5 million and an additional $23.8 million in clearance of pending exports claims.
Pakistani commerce officials expect that this development may pave the way for Russian investors interested in metals giant Pakistan Steel Mills, as well as the country's energy sector, and attract up to $8 billion, Profit reported.
Russia became the successor state of the Soviet Union upon the latter's disintegration in 1991, thereby inheriting its external debts and trade disputes.
