Pakistan and Russia have taken a big step towards strengthening their relationship by signing their first-ever barter trade agreement. This deal comes after a large delegation of Pakistani officials and businessmen traveled to Moscow, marking a historic moment for both nations.
The agreement was made during the Pakistan-Russia Trade and Investment Forum, which began on Monday in Moscow. Over 70 Pakistani businessmen and 100 Russian companies participated, showing a strong interest from both sides to increase trade. The Russian Deputy Minister of Trade and Investment, Alexey Gruzdev, welcomed the Pakistani delegation and expressed his hope that this forum would boost bilateral ties between the two countries.
Pakistani Federal Minister for Privatization & Communications, Abdul Aleem Khan, also spoke at the forum. He highlighted Pakistan’s desire to increase trade with Russia, emphasizing the importance of the long-standing diplomatic and commercial ties between the two nations.
What makes this forum even more exciting is the first-ever barter deal between the two countries, where goods will be exchanged directly, without the need for money to change hands. This is a strategic move, especially with Western sanctions affecting Russia’s ability to make international payments.
Two major agricultural companies, one from each country, finalized the barter deals. Russia’s Astarta-Agrotrading agreed to send 20,000 tonnes of chickpeas to Pakistan in exchange for 20,000 tonnes of rice from Pakistan’s Meskay & Femtee Trading Company. In another deal, Astarta will trade 15,000 tonnes of chickpeas and 10,000 tonnes of lentils for 15,000 tonnes of Pakistani mandarins and 10,000 tonnes of potatoes. These deals are not only practical but show how Pakistan and Russia are finding creative ways to do business despite global challenges.
Khalid Shikari, a former high-ranking Pakistani diplomat, explained that Pakistan sees itself as a potential transit hub for landlocked Central Asian countries and is eager to strengthen trade ties with Russia through these connections. He believes the current volume of trade between Pakistan and Russia doesn’t reflect the true potential of their relationship. Although their trade reached a record $1 billion last year, there’s potential for much more.
Last year, Pakistan also received its first shipment of liquified petroleum gas (LPG) from Russia at a discounted price, showing that trade can continue between the two countries despite the pressures of Western sanctions. Pakistan’s major imports from Russia include wheat, crude oil, minerals, fertilizers, and even pharmaceutical products, while Russia buys items like leather goods, textiles, rice, and sports equipment from Pakistan.
One of the biggest challenges has been the payment process due to sanctions on Russia. However, by engaging in barter trade, the two countries are finding ways to work around these restrictions, making it easier for them to continue trading without relying on traditional payment methods.
Russia is also looking to build stronger ties with Pakistan through infrastructure projects. Russian Deputy Prime Minister Alexei Overchuk recently visited Islamabad and discussed ways to improve road and rail connections between the two countries. This could be done by linking the North-South Transport Corridor (NSTC) with China’s Belt and Road Initiative (BRI), making it easier to transport goods and further boost trade.
Shikari noted that as Pakistan strengthens its ties with Russia and China, the influence of Western nations in the South Asian region is slowly declining. Both countries are focusing on enhancing trade, building infrastructure, and collaborating in the energy sector, creating a stronger partnership that could reshape the region’s economic future.
This growing relationship between Pakistan and Russia is not just about trade; it’s a sign of shifting global alliances and new economic opportunities. The barter deals are just the beginning of what could be a much deeper and more strategic partnership.
