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This month will see the start of direct Shipping services between Pakistan and Russia.
- Before this, Pakistani goods were transhipped to Russia for export.
- There will be a service between Saint Petersburg and Karachi.
- Services for direct shipping to boost the competitiveness of Pakistani goods.
KARACHI: An official informed The News that a direct containerised shipping service between Karachi and Saint Petersburg would begin this month. As a result, Pakistani exports would have access to the Russian market.
On May 25, direct shipping between Pakistan and Russia will start.
According to Abdullah Farrukh, CEO of Pak Shaheen (Pvt) Limited and Convener of Shipping Affairs of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), “The first ever ship will call at Karachi Port on May 25, 2023.”
Pakistani goods were being transhipped to the Russian market before the service opened, leading to delays and increased freight costs.
According to Abdullah, direct shipping to Russia will make exporting Pakistani textiles, sporting goods, surgical supplies, Himalayan salt, grains, leather goods, gloves, clothes, fruits and vegetables, and confectionery products easier.
The service will operate between Karachi and Saint Petersburg, according to the Pak Shaheen CEO.
As for the country’s current economic circumstances, “It is a significant step and will support Pakistani exporters, who were otherwise sending their products through transhipment.” This, according to him, was a good development.
CEO Announces Chinese Yuan Payments for Shipments, Involving Chinese and Pakistani Banks.
The CEO stated that payments for shipments would be made in Chinese Yuan, similar to how Pakistani exporters would be compensated by Russian importers.
He stated that banks from Pakistan and China would participate in these exchanges.
A Pakistan Business Council (PBC) report states that Russia has always benefited from bilateral trade with Pakistan. In 2020, bilateral trade amounted to $757.6 million, a record high.
Textiles and products related to them made up 40.1% of Pakistan’s exports to Russia in 2020.
Additionally, 34% of Pakistan’s exports to Russia were edible fruits.
In 2020, Pakistan imported $617 million worth of goods from Russia. Cereals, edible vegetables, mineral fuels, rubber, paper, iron and steel, pharmaceuticals, fertilisers, and organic chemicals were the most frequently imported goods.
In 2020, the value of Pakistan’s exports to Russia was $145 million.
The essential commodities were edible natural products, sewed material items, cotton, cowhide, made-up material articles, non-weaved material items, optical instruments, artificial staple filaments, toys and cutlery.
Trade Index Shows Pakistan’s Export Advantage in Potential FTA with Russia.
According to the trade index. Pakistan is in a better position to supply the Russian market than Russia is to provide the Pakistani market. This demonstrates that Pakistan’s export industry stands to benefit more from a potential FTA.
Abdullah said that the transhipment of Pakistani items to the Russian market consumed a large chunk of the day and helped different nations through which these items were transported.
To reach the Russian market, Pakistani fruits had to travel for more than 50 days through other nations. With the immediate course, these shipments would arrive at their objective in just 24 days.
He stated that Pakistani goods have significant export potential in the vast Russian market. During his most recent visit, he observed significant demand for Pakistani goods reaching Russia through other nations.
He said direct transportation administrations would make Pakistani items more severe in the Russian market.