Karachi (PR): Mr. Suleman Chawla, Acting President FPCCI, has welcomed the inauguration of Pakistan – Russia shipping & cargo service; and, pinned his hopes that trade with Russia will usher the country into a new era where considerable pressure will be reduced from Pak Rupee and its parity vis-à-vis dollar; balance of payments can see some stability after the trade volumes are increased on a sustained basis as the commercial transactional procedures and other teething problems are sorted out. This development will enable Pakistani exporters to export to Russia directly and transshipment costs would be saved; and, in fact, Pakistan itself can emerge as a transshipment hub, he added.
Mr. Suleman Chawla said that Russia has many high-quality products to offer & vice versa, and crude oil tops it all. He stressed that the quantum of importing Russian crude may be enhanced in a phased manner to as high as 100,000 barrels per day; and, to put things in perspective, Pakistan’s total demand remains in the range of 150,000 – 175,000 barrels per day. One can well imagine the impact it can have on Pakistan’s economy and price of petroleum products can be drastically reduced in Pakistan – one of the biggest contributors in fueling the inflationary pressures unabatedly.
Acting FPCCI Chief demanded that the government should facilitate and incentivize the shipping, transportation, logistics, container terminals, refineries and insurance companies willing to enter into Pakistan – Russia trade & commercial activities. He reiterated that the country has already wasted fair amount of time in starting to import Russian crude due to various pressures; while, as a matter of fact, there was no sanctions or legalities hindering Russian crude.
Mr. Suleman Chawla added that, technologically and industrially, Russia is a very advanced country; and, Pakistan should look for industrial collaborations, technology transfers, joint ventures, investments and joint production facilities established in Pakistan.
Mian Nasser Hyatt Maggo, immediate past President FPCCI, said that Pakistan will be the real winner in trade with Russia; and, there should be no stone remain unturned to create an enabling environment to capitalize on regional & sub-regional trade; barter trade; trade in currencies other than dollars; currency swap mechanism; establishing border markets; land-based bilateral trade and utilizing transit trade routes.
Mr. Abdullah Farrukh, Convener of FPCCI’s Central Standing Committee on Shipping Affairs, informed that direct shipping of cargo has kicked off between Pakistan & Russia on May 25, 2023, as the first ship arrived; and, the private-sector is fully geared up to play its part in fostering Pakistan – Russia trade and economic relations. He proposed that Pakistan should establish functional and efficient banking channels with Russia to reduce barriers to trade. Currently, he apprised, the transactions would take place in Chinese Yuan through Pakistani & Chinese banks.
