On October 1, 2024, Pakistan and Russia signed their first-ever barter trade agreement during the inaugural Pakistan-Russia Trade and Investment Forum in Moscow, attended by over 60 Pakistani and 100 Russian companies.
The forum was inaugurated by Pakistan’s Ambassador to Russia, Muhammad Khalid Jamali, alongside key Russian officials, including Deputy Minister of Industry and Trade Alexey Gruzdev and Evgeny Fidchuk, an advisor to the Russian transport minister. The Pakistani delegation, led by Privatization Minister Abdul Aleem Khan, aimed to strengthen economic ties and explore new business opportunities.
According to the Pakistani embassy in Moscow, the landmark agreement involves the Russian company LLC Astarta Agrotrading and Pakistani firms Meskay & Femtee Trading Company and the National Fruit Processing Factory. The deal includes the exchange of goods such as chickpeas, rice, mandarins, potatoes, and red lentils.
At the forum, more than 60 Pakistani companies, with a combined export value exceeding $500 million, showcased a diverse range of products and services, including textiles, leather, sports goods, pharmaceuticals, food, agricultural products, logistics, and tourism. The Russian delegation featured officials from various ministries, including Agriculture and Economic Development, as well as representatives from the Russian Export Center and several banks.
In his address, Privatization Minister Khan emphasized that the current trade volume between the two countries does not reflect their potential. He stated, “Our desire is to enhance trade and investment,” highlighting Pakistan’s position as the fifth-largest market in the world with a liberal trade regime. He expressed optimism about the new bilateral relations with Russia, marking it as the beginning of increased trade opportunities.
Deputy Trade and Investment Minister Gruzdev welcomed the Pakistani delegates, asserting that the forum would positively impact bilateral relations and open new avenues for trade and investment. Ambassador Jamali echoed these sentiments, noting that the existing road transport agreement signed in 2022 would facilitate trade between the two nations.
Once Cold War rivals, Pakistan and Russia have strengthened their ties in recent years through increased business interactions. Pakistan has shown interest in becoming a transit hub for landlocked Central Asian economies, aiming to connect with Russia for bilateral trade.
Last year, Pakistan’s relationship with Russia improved significantly when it began purchasing discounted Russian crude oil amid rising fuel prices in Pakistan. Additionally, in September 2023, Pakistan received its first shipment of liquefied petroleum gas from Russia, marking its second major energy purchase from the country.
In a recent visit, Russia’s Deputy Prime Minister Alexei Overchuk sought to further enhance trade and investment ties with Pakistan, indicating a promising future for bilateral relations.
