Pakistan has repaid Russia a $93.5 million debt pending since the collapse of the Soviet Union, which was a major hurdle in the trade ties between the two countries, RIA Novosti reported.
The trade dispute resolution will pave the way for billions of dollars in Russian investments in Pakistan, said an official from the country.
Under the agreement, the Pakistani government was bound to return $93.5 million to Russia within 90 days of the signing and clear pending Russian exporters’ claims to the tune of $23.8 million, as per settlement.
In the 1980s, export-import operations were carried out between the countries to supply various products. Until the last moment, countries had unresolved obligations to return funds from the Russian accounts of the Russian Federation to the National Bank of Pakistan. These funds were used to pay off Pakistan’s debts on government loans previously granted to the USSR, but Pakistan blocked them due to the lack of agreements to settle counter claims related to settlements in the framework of export-import operations of the former USSR.
In December, the two countries signed their largest-ever cooperation deal, worth billions of dollars, to expand trade and business. It includes huge investments in energy, railways and the steel industry.
