Islamabad, Moscow eye economic pact

ISLAMABAD: Pakistan and Russia have agreed to work towards signing a Programme of Economic Cooperation by 2030 as both countries seek to expand trade and investment and address longstanding barriers to bilateral business ties.

The development was highlighted during a webinar titled Pakistan-Russia Bilateral Relationship at the Cusp of Shifting Global Order, where Federal Minister for Energy (Power Division) Awais Ahmed Khan Leghari said relations between the two countries had moved on a positive and pragmatic path over the past two decades. He said the distrust that persisted from the Soviet era had receded and that ties had evolved from an unfriendly relationship into one spanning trade, energy, defence and technology.

The two countries are also preparing a roadmap aimed at removing obstacles to trade and investment. One of the major impediments had been restrictions on dollar payments due to US sanctions on Russia. To address that issue, Pakistan has proposed currency swap arrangements with Iran and Russia so payments can be made in local currencies. Both countries are studying that proposal.

Pakistan has also agreed to join the International North-South Transport Corridor proposed by Russia, with plans to connect the route to Gwadar Port. Russian Deputy Prime Minister Alexey Overchuk recently said Russia supported the inclusion of Gwadar in the corridor. The initiative is intended to create maritime trade links with Central Asia and complement China’s Belt and Road Initiative.

the International North-South Transport Corridor as a 7,200-kilometre multimodal network of sea, rail and road routes linking India, Iran, Azerbaijan, Russia and Central Asia. Speaking at the webinar, Leghari welcomed Overchuk’s statement on connecting the corridor to Gwadar, saying it would create an important link in the Belt and Road framework.

Trade hurdles and official engagement

A $93 million export claim dispute had previously stalled Russian investment in Pakistan and prevented Moscow from legally extending a credit line. That issue was resolved during the Pakistan Tehreek-e-Insaf government in 2019, clearing the way for increased trade and potential investment by Russian businesses.

Leghari, who serves as co-chairman of the Russia-Pakistan Intergovernmental Commission, said regular engagement with Russian Energy Minister Sergey Tsivilev remained important and described the commission as central to the two countries’ broadening relationship. He said bilateral cooperation had grown through formal mechanisms covering security, strategic stability and counter-terrorism, as well as coordination at the United Nations and the Shanghai Cooperation Organisation in support of what he described as an inclusive, multipolar international order.

The minister also said recent momentum in the relationship had been driven by high-level contacts, including four recent meetings between Prime Minister Shehbaz Sharif and Russian President Vladimir Putin. He added that the Russian leadership had praised Pakistan’s recent diplomatic role in helping defuse tensions between the United States and Iran, and said this had reinforced President Putin’s view of Pakistan as a significant global stakeholder.

The recently signed Russia-Pakistan Readmission Agreement in Bishkek was expected to ease visa procedures and support business travel as well as broader people-to-people exchanges. Pakistan had recently sent one of its largest delegations to the Kazan Forum 2026 and continued to take part regularly in the St Petersburg International Economic Forum and Moscow Energy Week.

In his concluding remarks, Leghari said Pakistan-Russia relations had become an important part of wider Eurasian economic integration and regional stability.