Secretary General (Federal) of the Businessmen Panel (BMP) and former Chairman Standing Committee of the FPCCI, Ahmad Jawad has said that increasing exports of agriculture products to Russia is also imperative for us after they slapped ban on food imports from US and Europe. Russia extended ban on the import of agricultural products from the countries that applied economic sanctions against Russia, including the United States and Europe.
He said there is a vacuum that needs to be filled. "As Pakistani citrus fruits have already received good response in Russian market, efforts can be made to promote awareness about other food products," he said. The exposure of the products can be maximised by taking part in Russian international trade shows, which can further build ways for business connectivity.
Russia experiences trade deficit with Pakistan. Trade deficit was at its maximum in 2015 when Pakistan imported commodities worth $96 million from Russia and exported goods of $298 million during the same year. After 2015, trade deficit considerably reduced and fell to $19 million in 2017, and according to the Federal Customs Service of Russia, the improvement was observed in 2017 and 2018.
A preferential trade agreement between Pakistan and Eurasian Economic Union is already in discussion, which could boost the trade relations between Pakistan and Russia and also pave way for Pakistan to enter other markets including Kazakhstan and Belarus. Similarly seafood, textile and surgical instruments are potential sectors in Russia where export considerably can be enhanced but the sectors need hierarchical changes and developments.
"Marketing strategies in the trade shows need to be re-drafted according to the tastes and trends of the target audience," he said. Similarly the coal import from Russia has increased and Citrus fruits from Pakistan are finding their way in Russian market, the trade volume between the two countries is expected to increase further in the coming years.
Jawad said e-commerce and international advertising agencies can be used to enhance presence of Pakistani products in Russian market with 105 million users. "In order to increase the competitiveness of Pakistani products, efforts can be made to reduce the heavy freight charges," he added. He said with Russia's growing interests in different sectors of Pakistan's economy and tapping into the potential areas where it can either invest or capture the market for Russian goods, it seems that after Chinese adventurism of CPEC, Russia Pakistan Economic Corridor (RPEC) is also in the making.
The thought of it may be ahead of time, but if Pakistan plays balanced chess moves on the board of international and regional politics in particular, it can become hotbed of intersecting world economies. He said Pakistan is at the crossroads of economic giants. With the increasingly improving security situation, the booming economies are looking up to Pakistan for their economic interests. Pakistan can cash in its geo-economic and geostrategic location, but by playing cautiously.
For Russia to expedite the RPEC, Jawad viewed they have to show their cards to Islamabad how much they invest here for further uplift our economic boom and mutually including some transfer of technology in certain defence equipments. Though Russian company Gazprom is set to lay down a $10 billion undersea gas pipeline not specifically for Pakistan but for the region that initially will be laid down from the Persian Gulf up to India touching Pakistani waters and Bangladesh's coastal areas.
"So the impression that building a $10 billion undersea gas pipeline is investment for Pakistan is wrong, as it is for other regional countries as well," Pakistan and India have already signed MoUs and agreements with Russia separately for the project under which both countries would get gas from the undersea pipeline through the spur pipelines. However, the three countries, Pakistan, India and Bangladesh, will benefit from the $10 billion Russian investment as buyer countries.
"Since the undersea pipeline will provide gas up to 1bcfd, so it is investment for Pakistan too to some extent." And Pakistan shall get transit fee in dollar terms for the undersea pipeline that is to pass through Pakistan's sea territory which is not a surprising thing.
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