Karachi, 19 May 2023 (GNP): An official claimed on Thursday that a Pakistan-Russia Direct Shipping service is set to start operations later this month, enhancing commercial access for Pakistani goods in the profitable Russian market.
According to Abdullah Farrukh, the CEO of Pak Shaheen (Pvt) Limited and Convener of Shipping Affairs for the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), “the first-ever ship will call on May 25, 2023, at Karachi Port.”
Prior to the launch of this service, transshipment was being utilized to export Pakistani goods to the Russian market, which increased shipping times and costs.
In the opinion of Abdullah, Pakistan-Russia direct shipping service would make it easier for Pakistan to sell commodities including textiles, sporting goods, medical supplies, grains, Himalayan salt, gloves, clothing, fruits, vegetables, and sweets to Russia.
“It is a significant step in the current economic situation of the country and will support Pakistani exporters, who were otherwise, sending their products through transshipment,” he further said.
Regarding the method of payment, the CEO stated that Yuan, the Chinese currency, will be used by Russian buyers to pay Pakistani exporters for shipments. He said these transactions will include banks from Pakistan and China.
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The Pakistan Business Council (PBC) reported that trade between Russia and Pakistan has consistently favored Russia.
The value of bilateral trade peaked in 2020 at $757.6 million. In 2020, textiles and textile products made up 40.1% of Pakistan’s exports to Russia.
In 2020, Pakistan imported goods worth $617 million from Russia, such as cereals, edible vegetables, mineral fuels, rubber products, paper products, iron and steel, pharmaceutical products, fertilizers, and organic chemicals.
During the same year, Pakistan’s exports to Russia amounted to $145 million, primarily comprising edible fruits, knitted textile products, cotton, leather products, optical instruments, toys, cutlery, etc.
According to the trade index, Pakistan is more fitted to supply the Russian market than Russia is to supply the Pakistani market. This demonstrates that the export sector in Pakistan would benefit more from a possible Free Trade Agreement (FTA) between the two countries.
