Russia interested in energy sector, mineral resources development

Andrey Vladimirovich Demidov, Consul-General of Russian Federation in Karachi, said here on Tuesday that Russia was interested in co-operation with Pakistan in energy sector development and to yield maximum potential in mineral resources fields.
Addressing members of Faisalabad Chamber of Commerce and Industry, he said that a great potential exists for Pakistani businessmen in rice, fruits, pharmaceuticals, sports goods, leather, apparel, hosiery, home textiles and fabrics. Therefore, Pakistani businessmen should join hands with their counterparts in Russia. He said that for fruits the Russian market size is $5.77 billion, out of which 80 percent fruits being imported. The market size for pharmaceuticals is $14 billion, with an annual growth of 11.4 percent, and out of which 74 percent are imported.
Chairman of Pakistan-Russia Business Council of FPCCI, Muhammad Farooq Afzal, said that the business community of Pakistan appreciates the endeavours made at the government level by the two countries to establish profound politico-economic ties and perceives it as the vista of fresh opportunities to augment bilateral trade and economic rotations between Pakistan and Russia.
He underlined that last several years witnessed substantial expansion of contacts between the two countries, both at high and people-to-people levels. The current positive trends give the two countries and people the opportunity to better understand each other, to exploit the existing potential to mutual benefit, he added.
He appreciated the positive shift in the trade policy of Pakistan and Russia towards each other with the result that the bilateral trade is gaining momentum, which was stagnant in the past due to the influence of global politics. The trade volume, which was at $67 million in 1998-99 reached $650 million in 2009-10, and a similar trend is also being witnessed in the current fiscal year. Although the current development in bilateral trade relations is encouraging, but still there exists immense potential and this is yet to be explored. Russia is an important market of more than $1.3 trillion, in which Pakistan's share is negligibly low at 0.04 , he added.
Farooq said: "We are living in the era of globalisation, where the nations are facing tough economic challenges due to cutthroat competition. These challenges had created new trend of economic co-operation ie co-operation between the regional economic blocks".
Pakistan is member of Saarc (South Asian Association for Regional Co-operation) whereas Russia is member of Shanghai Co-operation Organisation (SCO). Pakistan has been given observer status at the Shanghai Co-operation Organisation (SCO), because Russia chose not to veto it. In its turn, Islamabad supported Moscow for being given observer status at the Organisation of Islamic Conference (OIC). These developments are of a positive nature and must be taken advantage of. "The best way to take an advantage is that, we must work together to bring Saarc and SCO close together. Achieving this goal will bring progress in various spheres of economy, trade, science and technology in the member countries of both blocs," he said.
Farooq said that Russia is in a position to assist Pakistan in developing its infrastructure, modernisation of industrial and agriculture sectors, human resource development and boosting the competitiveness of industries. Russia can also help Pakistan in the development of water and power, oil and gas and heavy industrial complex. Chemicals, fertilisers, wood pulp, iron and steel etc can be imported at very competitive prices.
Furthermore, he said that Pakistan is the 3rd largest textile exporting country in the world whereas Russia is the 3rd largest textile importing country in the world after USA and EU. Faisalabad city is the textile hub of Pakistan whereas Ivanovo is the textile hub of Russia. These facts provide tremendous opportunities for promotion and development of textile trade between the two countries. Other than textile, Pakistan can export to Russia rice, sports goods, leather goods, surgical instruments, pharmaceuticals and many more, he added.
Pinpointing the product-wise potential in Russia, Farooq said that 700,000 tons rice per year is importing mainly from China and Vietnam, while total fruit market size is $5.77 billion and 80 percent fruits are being imported. This market is growing 15 percent annually. Main fruits are apple, banana, orange, lemon and others.
Commenting over the pharmaceuticals, Farooq said that this market size is $14 billion with an annual growth of 11.4 percent and 74 percent is imported. Cardiac, gastro, respiratory and oncology drugs are main products being imported. "We can export herbal medicines to Russia," he added.
Sports goods market size is $3.5 billion and it is importing $3 billion per year. Products are soccer, basket ball, volley ball, roller, tennis, badminton, skating etc. China is main player exporting 50 percent of the sports goods and then come USA 15 percent and Europe 15 percent. This market has now growth of 15 percent every year. In leather field total market size is about $10 billion and it is importing from all over the world.
Farooq said that the consumer goods market in Russia consists of 1.3 trillion dollars and if a proper strategy is adopted then Pakistan can surge its consumer goods export to Russia up to one billion dollars within a year. Therefore, he requested the Pakistan govt and private sector to come forward to work jointly in providing the trade facilities on huge scale and to initiate dialogue with Russian govt in removing the trade barriers, which are hampering Pakistan's exports. Farhan Latif, a former MNA and member of ad hoc committee of FCCI, Zafar Iqbal Sarwar also addressed the meeting.