Pakistan has finally decided to repay its decades old trade dispute with Russia, after Islamabad authorized its ambassador from Moscow to sign a deal with the nation.
Pakistan May Yield $93.5 million into Russia over 90 days of Their signing of This agreement. Islamabad would also clear pending exporters’ claims that amounts up to $23.8 million as part of their payoff.
The trade dispute, which extends back into the days of Soviet era, entails $117 million and many unsuccessful attempts have been made in the past to terminate the dispute. According to a report in The Express Tribune, Pakistan will yield $93.5 million to Russia over 90 days of the signing of this agreement and clear pending exporters’ claims that amounts up to $23.8 million as per the settlement agreements reached in 2016-17.
The trade dispute negatively affected the relations between Russia and Pakistan and it’s estimated that the payoff will open doors for enhanced bilateral political, economic and diplomatic relations between both nations.
As per accounts, back in 1980s, the Soviet Union that was then was able to purchase textile and other materials in Pakistan. With this purpose the USSR started two bank accounts at the National Bank of Pakistan (NBP), together with capital becoming deposited into the accounts from the Economic Affairs Division by State Bank of Pakistan.
Upon the disintegration of Soviet Union, some exports payments were left unpaid and as the trade dispute obtained protracted. Pakistani companies obtained stay orders barring the NBP from transferring capital of Russian banks stored at its own 2 accounts since 1996.