KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed its support for the commencement of direct shipping and cargo service between Russia and Pakistan.
This development is expected to open new avenues for trade and economic cooperation between the two countries, leading to potential benefits such as reduced pressure on the Pakistani Rupee, improved balance of payments, and enhanced export opportunities.
Acting President of FPCCI, Suleman Chawla, emphasized that the direct shipping and cargo service between Russia and Pakistan holds great promise for both nations. He highlighted the potential reduction in transshipment costs and the opportunity for Pakistan to establish itself as a transshipment hub. Chawla underscored the significance of Russia as a trading partner, mentioning high-quality products and, notably, crude oil. He suggested gradually increasing the quantum of imported Russian crude to meet Pakistan’s demand, potentially reducing the price of petroleum products and positively impacting the country’s economy.
Chawla called upon the government to facilitate and incentivize various sectors involved in Pakistan-Russia trade, including shipping, transportation, logistics, container terminals, refineries, and insurance companies. He emphasized the importance of expediting trade relations with Russia and encouraged industrial collaborations, technology transfers, joint ventures, investments, and the establishment of joint production facilities in Pakistan.
Former President of FPCCI, Mian Nasser Hyatt Maggo, emphasized the significance of Pakistan’s trade with Russia, suggesting the exploration of regional and sub-regional trade, barter trade, trade in currencies other than the US dollar, currency swap mechanisms, the establishment of border markets, land-based bilateral trade, and the utilization of transit trade routes. Maggo stressed the need to create an enabling environment to capitalize on these opportunities and ensure Pakistan emerges as a winner in trade relations with Russia.
Abdullah Farrukh, Convener of FPCCI’s Central Standing Committee on Shipping Affairs, shared that direct shipping of cargo between Pakistan and Russia has commenced, with the first ship arriving on May 25, 2023. He highlighted the importance of establishing efficient banking channels with Russia to facilitate trade and suggested conducting transactions in Chinese Yuan through Pakistani and Chinese banks in the current scenario.
The initiation of direct shipping and cargo service between Russia and Pakistan has been warmly welcomed by the FPCCI. The development is expected to strengthen bilateral trade and economic relations, providing opportunities for export growth, reduced costs, and enhanced collaboration in various sectors. The FPCCI calls for government support and proactive measures to ensure a conducive environment for Pakistan-Russia trade, capitalizing on the potential benefits for both nations.
