Pak Economic relations with Russia and Ukraine :

The war takes a devastating human toll and will likely have lasting effects on global trade, particularly
the energy markets. This will not bode well for Pakistan which is already suffering from high inflation
and low economic growth, and political instability, particularly the looming vote of no-confidence
against the Prime Minister.

 Economic relation with Russia :

Historically, Pakistan has maintained bilateral economic cooperation with Russia in all sectors including
trade, defense, economy, and energy. In 2021, Pakistan’s trade value with Russia was USD 711M
including USD 537M in Russian imports. Pakistan Stream Gas Pipeline Project, the construction of a USD
2.5B , 1,100-kilometre natural gas pipeline , from Port Qasim in Karachi, in Sindh, to Kasur in Punjab,
would be beneficial in the future.

 Economic relation with Ukraine :

Pakistan enjoys friendly, albeit modest, trade relations with Ukraine, a large component of which is the
agriculture sector, particularly wheat. Ukraine is the main supplier of wheat exporting 1.2 megaton (MT)
to Pakistan.

Effect on Pakistan :
The United States, the European Union, and other countries have introduced or expanded sanctions on
members of the Russian regime. More specifically, the United States has banned the imports of Russian
oil and natural gas.

2) This disruption of energy supplies from the world’s largest supplier Russia is resulting in a hike in
energy prices throughout the world. This is a significant setback for an oil-importing country like
Pakistan.

3) This has the potential to deplete our national reserves, thereby shrinking the country’s purchasing
power even more. The conflict will directly impact Pakistan’s wheat imports from Ukraine, which
accounted for 39% of the total imported wheat in the preceding fiscal year. The potential snowball
effect of this conflict is massive, with a surge in electricity rates, raising of interest rates by central banks,
wage-increase demand to meet increased living costs, increase of prices by businesses to compensate
higher wages, and workforce cuts leading to unemployment.

4) Immediate issues for Pakistan, as LNG companies have backed out of their contracts with Pakistan to
exploit lucrative European markets. Pakistan is now compelled to purchase expensive LNG.

5) Pakistan and Russia have agreed to promote bilateral cooperation in all sectors including trade,
defense, economy, and energy.[6] However, the conflict has the potential to disrupt Pakistan’s new
strategic pivot of geoeconomics

6) The construction industry has also taken a hit because Pakistan was importing steel from Ukraine.
Also, Pakistani exports to Ukraine have ceased, which will harm local industries and the economy.
7) Diplomatically, Pakistan is caught in a complex situation as it wishes to maintain ties with both Russia
and the West, including the US and EU. It may soon be faced with a repeat of the Cold War situation by
having to pick sides. Alienation from either side can affect bilateral relations with the other.

Imran khan visit to Russia :

It is particularly noteworthy that with a gap of 23 years, Russia has invited the Pakistani leader to visit ,
in Kremlin ,Moscow, which reflected PM Imran Khan’s high-stature and leadership qualities. Russian
President Vladimir Putin has great respect for PM Khan and now the voice of Pakistani leader is always
acknowledged at the world level whether it is on regional or international issues, which enhances the
dignity of Pakistani people and nation. The strategic significance of the visit was mainly reflected in the
three aspects:

1) Rising Pakistan’s international status.

2) Russia’s tilt towards developing cooperation with Pakistan as India gets closer to the US.
3) Cooperative relations among Pakistan, China and Russia is conducive to curbing the disturbance
of external force.
4) Pakistan’s economic interests, import of 2 million tons of wheat from Russia. Secondly, Pakistan
have signed agreements with them to import natural gas because Pakistan's own gas reserves
are depleting.

The top diplomats of 22 countries, including European Union member states, jointly called on the
government of Pakistan to support a resolution in the United Nations General Assembly condemning
Russia's aggression against Ukraine. Khan and his government found themselves in the spotlight after he
went ahead with a visit to Moscow in late February as fears of an invasion were growing, and met
Vladimir Putin a few hours after the Russian president had ordered his troops into Ukraine. Before his
Russia visit, Khan said the Ukraine crisis had nothing to do with Pakistan, which did not want to join any
block.