A direct shipping service connecting Pakistan and Russia is set to begin operations later this month, allowing Pakistani products greater access to the Russian market.
Chief Executive Officer (CEO) Pak Shaheen (Pvt) Limited and Convener Shipping Affairs Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Abdullah Farrukh said the first ship will arrive at Karachi Port on May 25, 2023, reported a national daily.
In terms of payment, the executive said shipments would be paid for in Chinese currency Yuan. He added that these transactions would involve Chinese and Pakistani banks.
“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 remarked.
The report stated that the transshipment of Pakistani products to the Russian market takes quite a while and benefits other countries through which these products are transshipped. Pakistani fruits had been taking more than 50 days to reach the Russian market via other countries, but with the direct route, these shipments would now arrive in only 24 days.
He added that the Russian market is vast and has significant export potential for Pakistani products. He recalled his recent visit to Russia, pointing out a high demand for Pakistani products that were arriving there through other countries. He claims that direct shipping will increase the competitiveness of Pakistani products in the Russian market.
Russia has reportedly always benefited from bilateral trade with Pakistan. Bilateral trade reached an all-time high of $757.6 million in 2020. Textiles and textile articles accounted for 40.1 percent of Pakistan’s exports to Russia in 2020.
Recent data suggest Pakistan is better suited to supply the Russian market. This demonstrates that a potential full trade agreement between the two countries would benefit Pakistan’s export industry more than it would for the Russian side.
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