- Earlier, Pakistani products were exported to Russia through transshipment.
- The service will be between Karachi and St. Petersburg.
- Direct shipping services to make Pakistani products competitive.
KARACHI: A direct containerized shipping service connecting Karachi and St. Petersburg will start this month, which will provide commercial access to Pakistani products in the Russian market. News.
Abdullah Farrukh, Chief Executive Officer (CEO) Pak Shaheen (Pvt) Ltd, who is also the Convener Shipping Affairs of the Federation of Pakistan Chamber of Commerce and Industry, said, “The first ship will call at Karachi Port on May 25, 2023.” FPCCI).
Prior to the launch of the service, Pakistani products were being exported to the Russian market through transshipment, which caused delays and increased freight costs.
Abdullah said that direct shipping would facilitate the export of textiles, sports goods, surgical items, Himalayan salt, rice, leather goods, gloves, garments, fruits and vegetables and confectionery items from Pakistan to Russia.
Pak Shaheen CEO added that this service will be between Karachi and St. Petersburg.
“This is an important step in the current economic situation of the country and will help Pakistani exporters, who were otherwise sending their products through transshipment,” he added.
Regarding the payment mechanism, the CEO said that payment for the shipment will be made in Chinese currency Yuan as Russian importers will pay Pakistani exporters in Chinese currency. He said that Chinese and Pakistani banks will be involved in these transactions.
According to a report by Pakistan Business Council (PBC), bilateral trade between Russia and Pakistan has always been in favor of Russia. Bilateral trade reached an all-time high of $757.6 million in 2020. In 2020, 40.1 percent of Pakistan’s exports to Russia consisted of textiles and related goods.
Similarly, edible fruits account for 34% of Pakistan’s exports to Russia.
In 2020, Pakistan’s imports from Russia were valued at $617 million, with major imports being cereals, edible vegetables, mineral fuels, rubber products, paper products, iron and steel, pharmaceutical products, fertilizers and organic chemicals.
In 2020, Pakistan’s exports to Russia were valued at $145 million, including edible fruits, knitted textile products, cotton, leather products, make-up textile articles, non-woven textile products, optical instruments, man-made staple fibers, toys. are and cutlery.
The trade index indicates that Pakistan is better off supplying the Russian market than Russia is supplying the Pakistani market. This indicates that the Pakistani export industry would benefit more from a possible FTA between the two countries.
Abdullah said that the delivery of Pakistani products to the Russian market was taking a long time and it was benefiting other countries, through which these products were transshipped. It used to take more than 50 days for Pakistani fruits to reach the Russian market through other countries, now the consignment will reach its destination in just 24 days through the direct route.
He said that the market of Russia is very big and provides huge potential for export of Pakistani products, during his recent visit he saw huge demand for Pakistani products reaching Russia through other countries.
He said that direct shipping services will make Pakistani products more competitive in the Russian market.