Trade relations between Pakistan and Russia face obstacles as Pakistani banks exhibit reluctance to facilitate the opening of Letters of Credit (LCs) for cargo under the recently established direct shipping service.
This critical development, initiated in May this year, is the result of an agreement between Pak Shaheen (Private) Limited and Russian express liner service Neco Line, designed to provide Pakistani products immediate access to the Russian market.
Under the agreement, payments are conducted through the local banking channel in Chinese yuan, offering a streamlined approach to conducting trade.
According to a report by The News, Pakistani banks are hesitant or even fearful to open LCs for the cargo under the direct shipping service, given the ongoing geopolitical complexities between the two nations.
One source stated that banks can pay in Chinese currency yuan and Russia accepts it as per the arrangement, devised for this shipping service between the two countries. However, banks are not showing the kind of facilitation, which is required to boost the trade with Russia.
Abdullah Farrukh, the CEO of Pak Shaheen confirmed the lack of facilitation on the part of banks and expressed the need to resolve these issues to unlock the full potential of this direct shipping service. While he acknowledged some improvement in bilateral trade since the service’s initiation, he stressed the vast untapped potential of the Russian market for Pakistani exports.
Farrukh noted that Russia’s interest in purchasing textiles, garments, yarn, towels, leather, kinnow, potatoes, and other goods from Pakistan presents a significant opportunity for industries in cities like Karachi, Faisalabad, and Sialkot to substantially increase their exports
Good
Amazed
Thank u for giving latest info
This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles.
This is a wonderful article which has proved particularly useful for me, that is why I would like to thank the writer of this article.
This shipping service is too good
very very intresting post
Russia is a really good and big market.
superb news
nice
Such a knowledgeable information that’s I was to aware of it.