ISLAMABAD, Jan 2: Double taxation issue and cooperation in various sectors between Pakistan and Russia are likely to come up for discussion during President Pervez Musharraf visit to Russia in the first week of next month, well placed sources told Dawn on Wednesday.
The President was visiting Moscow at the invitation of Russian President, Viladimir Putin, said the sources.
The two countries have already exchanged the draft agreement on the avoidance of double taxation in terms of income and fiscal evasion.
According to the sources, it was likely that during the visit the issue among others would be discussed and an agreement finalized.
The other areas of cooperation, which is most likely to be discussed, include agriculture sector, science and technology and oil and gas sectors.
Pakistan would seek more access to Russian market for a substantial portion of commodities, which would attract more consumers in Russia.
According to sources, about two thirds of Pakistan’s trade concentrated in a group of 12 major trading partners. Asian countries, including the Middle East, take about 46 per cent of Pakistan’s exports and provide half its imports. European countries account for 33 per cent of Pakistan’s trade (import and export).
The share of machinery imports has increased over the period of time from major countries like US, Italy, Germany, which eat up major chunk of foreign exchange.
The sources said that import of machinery particularly the agriculture machinery from Russia would help the importers to get at lesser prices as compared to other countries, which would result in saving of foreign exchange.
Official statistics made available to Dawn showed that Pakistan trade deficit with Russia increased by 33.54 per cent to $71.749 million during the financial year 2001-02 from $53.725 million during the year 2000-01.
Further break-up showed that Pakistan exports to Russia stood at $5.852 million during the financial year 2001-02 against $7.964 million during the same period of previous year, showing a decline of 26.51 per cent.