SBP asked to consult banks and exporters on trade transaction mechanism with Russia

A high-level committee on Russia, led by Minister for Planning, Development, and Special Initiatives Ahsan Iqbal, has directed the State Bank of Pakistan (SBP) to consult with banks and leading exporters to establish a transaction settlement mechanism for trade with Russia. 

According to a news report, the committee has held multiple meetings, but a finalized “wish list” remains pending, awaiting discussions during an upcoming high-level visit to Moscow. Pakistan’s ambassador to Russia, Khalid Jamali, was in Islamabad to provide insights on various agenda items under discussion in different forums concerning future relations with Russia.

During the committee’s sixth meeting on August 6, 2024, chaired by Minister Ahsan Iqbal, it was noted that Prime Minister Shehbaz Sharif may convene a review meeting to assess preparations for the visit to Russia. Ministries were urged to be ready to present their engagement strategies with Russia to the Prime Minister on short notice.

The committee decided that all Ministries and Divisions should prepare concise presentations for the Prime Minister’s review, encapsulating their strategy papers and roadmaps for engagement with Russia, ensuring compliance with previous committee decisions. Each ministry will present its roadmap during the Prime Minister’s review meeting.

The State Bank of Pakistan was instructed to hold consultations with banks and leading exporters to develop a plan for non-sanctioned and innovative methods of transaction settlement with Russia, potentially drawing on models like the BRICS New Development Bank. 

The Ministry of Railways was tasked with conducting a feasibility study for passenger travel on the Pakistan-Iran-Turkey route while exploring multi-gauge options in collaboration with engineering universities for innovative solutions. 

Additionally, the Ministry of Water Resources was directed to consult with the Power Division to align overlapping projects and avoid inconsistencies in the proposed roadmap. 

The Ministry of Inter-Provincial Coordination (IPC) was instructed to coordinate with provinces and prepare a consolidated presentation for the Prime Minister.

The meeting was attended by the Minister for Water Resources, Dr. Musadik Masood Malik; Special Assistant to the Prime Minister, Syed Tariq Fatemi; Prime Minister’s Coordinator, Rana Ihsan Afzal; and senior officials from various concerned ministries.