Horticulture products: Banking gap hurting Pakistani exports to Russia

IQBAL MIRZA

KARACHI: Pakistani exporters of horticulture products are finding it difficult to penetrate into the Russian market due to unavailability of banking channels, according to member export, Islamabad Chamber of Commerce and Industry (ICCI), Ahmad Jawad.

Talking to Business Recorder he said that the Russian fruit market’s size is around $ 5.77 billion of which imports account for 80 percent but this huge market has remained unexplored due to lackluster policies although there exists a big potential for the export ofPakistan’s horticulture products.

PakistanandRussiashould jointly look into the possibilities of organizing trade delegations and exhibitions in each other’s countries every year, being the most effective tool of marketing strategy.

In this connection, he suggested establishment of Pak-Russia Horticulture Business Forum on immediate basis, keeping in view the growing interest ofRussiain Pakistani agriculture products.

It is time that the government pays attention towards encouraging exports of fresh produce industry ofPakistan, particularly in agriculture products.

He emphasized that the government should draw a workable strategy to lift the exports of fresh produce industry. “Our focus should be on Russian and CIS (Common wealth of independent states) markets with regard to fruits and vegetables which are ready to absorb as much as we could export,” he said.

Currently due to unavailable banking channels withRussiathey were unable to explore this market in bigger volumes, he said. Russian banks which are keen to develop banking relations with their counterparts in Pakistan but some issues related to regulations by the two central banks was causing delay, he added.

There had been long demand from the business community of both the countries for opening up of bank branches to regularize payments of imports and exports between the two countries, he said, adding that asRussiawas the biggest market forPakistan’s agriculture products especially in fruits. “We may easily meet our targets by entering this market subject to proper strategy,“ he said. A recent study conducted by United States Department of Agriculture (USDA) shows that between January and April 2011, citrus import volume noted inRussiareflected 29 percent increase compared to the same period in 2010.

Similarly Russian imports, particularly food and agriculture items, worth almost $35.2 billion from all over the world per year, he said, adding that they could achieve excellent results if they were to strengthen relations with Russian government.

Jawad also welcomed the gesture of Prime Minister Gilani for inviting Russian President Vladimir Putin toPakistanthis September in which they were understood to sign MoU’s for increasing trade between the two countries through proper banking channels as it would be the first visit by a Russian head of state toPakistan, he said.