Pakistan and Russia to sign the draft shareholders agreement

Pakistan and Russia have decided to sign the draft shareholders agreement for the $2.5 billion Pakistan Stream Gas Pipeline Project (PSGP).

This was decided during the three day meeting of the Russian-Pakistani Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation held in Yekaterinburg. Russia has also agreed to allow import of grains and rice from Pakistan.

The project would be implemented through the Russia-government nominated private entity and government of Pakistan-owned public entity. Economic Affairs Minister Omer Ayub Khan, while briefing the National Assembly Standing Committee on Economic Affairs Division said that Russia is using its own banking system, while Pakistan is using the European banking system, however, Pakistan has shown interest in using their system which would help the business community. He further said that Pakistan and Russia have currently no direct flight operations, however now both sides agreed upon to enhance cooperation in this regard.

Furthermore during the meeting the Russian side has also confirmed its interest in supplying and after-sales service of the Russian civil aircraft to the Pakistan’s state-owned and private organisations. It was also agreed that the draft agreement between the two countries on international road transport would be finalized.

Russian Energy Minister Nikolai Shulginov has been quoted saying. “The flagship project is the construction of the Pakistan Stream gas pipeline from Karachi to Lahore spanning over 1,100 kilometers with the throughput capability of up to 16 bln cubic meters per year, which will connect LNG ports in Karachi with industrial gas consumers in the country’s north,” This pipeline will also provide a chance to Russian companies to supply liquefied natural gas for the project in the future.