Pakistan and Russia made infrastructure development deals for progress. The deal got big highlights from all over the world with Indian media giving the deal big coverage. After the conflict between India and Pakistan both Russia and Pakistan made a significant deal on the infrastructure development sector. Many experts are predicting this is a new milestone achieved by Pakistan as India and Russia are close allies and this development project will help Pakistan to build strong relations with Russia.
Agreement signed between Russia and Pakistan:
Russia and Pakistan signed a deal worth 2.6 billion dollars for infrastructure development projects. The deal includes enhanced cooperation, trade and energy projects. The investment of both countries is getting attention from all over the world, especially India.
Increase in job opportunities:
Both Russia and Pakistan infrastructure development programs will increase job opportunities in Pakistan. According to analysts it will create thousands of local jobs and opportunities for Pakistani citizens. This will help Pakistani people to support their families and it will create opportunities for middle class people who are already struggling with their life necessities.
Energy cooperation:
This will increase oil projects in Pakistan potentially including pipe line projects. This project will also transform energy distribution networks. This project will also lower the dependence of Pakistan on foreign imports which will lead to inflation. This will lead to an increase in oil and gas projects in Pakistan. Both Russia and Pakistan made this deal to support the individual economy and to decrease dependence on foreign imports. This will also lead to development of pipeline projects and also energy projects.
Road network project details:
The road network will link South Asia to Central Asia and Russia. The advantage of this project is it gives access to landlord countries to water ports. The road development and infrastructure will also improve trade corridors which extend towards Russia and central Asia. This will lead to development of road networks for better trading opportunities in the country through which both countries will benefit.
Trade development opportunities:
Both countries also signed trade development projects which will increase agriculture development projects. This will position Pakistan as a trade hub. Both Russia and Pakistan also signed industrial collaboration projects.
Benefits of the agreement:
This will increase investment opportunities for the investors who want to invest in the country’s economy. While on the other hand Uzbekistan Pakistan and Afghanistan rail project will enhance regional connectivity and will also enhance trade opportunities. This will also bring regional stability between Pakistan and Russia. This will also improve trade corridors and will also stretch routes from central Asia to Russia. This will also integrate seaports of Pakistan with networks.
Karachi steel plant:
Revive a Karachi steel plant which was abandoned in 2015. The benefit of this project is it will reduce imports of Pakistan. It will reduce imports up to 30% which in total will cut 2.6 billion dollar import bill. Both Russia and Pakistan aim for this project to be completed in a timeline of two years.
New strategic partnership deals :
The deal’s significance is it will increase investment opportunities in Pakistan. This will bring Russia advanced technologies capabilities and also it pairs energy projects with Russia. The success of these projects depends on the Pakistani role in the regional trade networks. It ensures that both countries will get long term benefits from these projects. It will also create job opportunities in Pakistan and also will lower imports to sustain the economy and to improve trading opportunities within the country.
Implementation of the projects between Pakistan and Russia:
The implementation of this project depends on both countries. The biggest advantage of the project is it avoids direct state funding instead of relying on foreign funding and also on private sector partnerships. The infrastructure will be modernised and through this it will compete with cheaper imports.
Conclusion:
Both Pakistan and Russia will benefit from these deals. It also addresses technical hurdles and Pakistan will lower the country’s imports through this project. Both Pakistan and Russia relations took a new turn as this project got massive attention from the world. Pakistan and Russia both countries agreed on mutual investments to enhance bilateral relations.
