AN OVERVIEW OF PAK - Soviet/RUSSIA RELATIONS

Sarfraz Khan*
& Noor-Ul-Amin**

Abstract

Pak-Soviet/Russia relations have survived several strains since 1947. Prior to the partition, All India Muslim League and Indian National Congress had been adhering to different, even conflicting, ideologies. Muslim League formed by Muslim landed elites, belonging to various regions of Indian sub-continent, catered to the needs of the Muslim landed nobility, civil servants and lawyers. Indian National Congress claimed to be representative of Indian peasants and ideologically tilted towards socialism. 
Following independence, the first Prime Minister of Pakistan was invited to visit USSR, in 1949, he instead, reached USA on an official visit. Moreover, Pakistan under the influence of landed nobility, western educated politicians, military and civil servants tilted towards USA and did not approve socialistic policies of the USSR. Despite a lukewarm behavior of Pakistan, USSR gave enough financial and technical assistance to Pakistan in the shape of establishing Steel Mills at Karachi and provided interest free loans. Pakistan, however, alleged that USSR has played inimical role in the East Pakistan debacle and the Soviet Union did not appreciate Pakistan’s opposition to the Soviet role in Afghanistan. Russia also alleged Pakistan to have a role in inciting the Chechen and Daghistan uprising and Pakistan leveled similar charges against Russia of fueling insurgency in Baluchistan.
Despite unenviable past, there seems to exist much potential of developing Pak-Russia bilateral cooperation in the fields of diplomacy, trade, economy, science, technology, mining, prevention of drugs, extremism and terrorism, though numerous opportunities and much time has previously been wasted.

Introduction

The foreign policy of Pakistan, soon after independence, did not stand on solid foundations and suffered from inconsistencies and imbalance. Owing to some historical, geographical and ideological idiosyncrasies, Pakistan did not succeed in establishing closer, good neighborly ties with the Soviet Union. The roots of the most noticeable ideological idiosyncrasies, affecting Pak-Soviet relations, can be traced back to the pre-independence era of the Indo-Pak Subcontinent. Pak-Soviet/Russia relationship can arbitrarialy be divided into five major periods: (1947– 1965), (1966-1971), (1972 – 1977), (1978- 1991) and (1992-2014). First four phases till 1991, provide a bird’s eye view of Pak-Soviet and the last phase (1992-2014) discusses Pak- Russia relations.
Pre-independence India had heavily been influenced by the Great October 1917 Socialist Revolution, in Russia. The revolutionary message had virtually mesmerized the minds of the emerging Indian educated middle class in the initial decades of the twentieth century. The First Communist International (COMINTERN) in its first meeting, in March 1919, transmitted the message of revolution on the Soviet model across the globe. The father of Russian Socialist Revolution, V. I. Lenin (1870–1924), called for establishing an international communistic social order, thus, invited not only progressive, educated social element of the European Continent, but also of the Indian Sub-continent, to join hands and materialize this dream.  
Before partition of India, the Soviet Union had longstanding relations with the Communist Party of India and Indian National Congress. Soviet Union rendered support to ‘Right to Self Determination of Nations’ and encouraged National Liberation movements in colonized countries, against imperial powers. Muslim League, on the other hand, did not have the vision to cultivate relations with the Soviet Union, an anti-imperialist power, in its neighborhood. Both, Soviets and Indian communists, also supported ‘Right of Self Determination of Nations’ and the creation of Pakistan, exercising  democratic will of Indian Muslims, popularly known as two nation theory. However, subsequent rulers of Pakistan and pro west religious and other political forces, created an impression that Islam was not appreciated by the USSR since state and politics in the Soviet Union were separated from religion. The Communist Party of India (CPI) supported the Partition Plan of India, however, the right wingers propagated that the socialists and nationalists did not support partition of India.
In 1920, M. N. Roy (1887–1954), leading Indian communist, based in Great Britain, joined the International Communist Movement. Later, by 1934, well-known Indian Muslim intellectuals, including: Syed Sajjad Zaheer, Mahmudul Zafar, Rasheed Jehan, Dr. K. M. Ashraf, Hajira Begum also flocked this movement. The Progressive Writers Association (PWA), founded in 1936 in India, became the flag-bearer of socialist political thought in the Indian Sub-continent. Following the British withdrawal from India and emergence of two sovereign states – India and Pakistan, in 1947, numerous seasoned writers, poets and intellectuals, such as Sajjad Zaheer (1905-1973), Josh Maleh Abadi (1894-1982), Habib Jalib (1928-1993), Hasrat Mohani (1875-1951) migrated to Pakistan. Joining hands with renowned, local, prolific writers and poets including: Faiz Ahmad Faiz (1911-1984), Saadat Hussain Manto (1912-1955) and Ahmad Nadeem Qasmi (1920-2006), together with peasant and workers Unions, provided great impetus to the emerging socialist thought amongst budding intelligentsia and working people of Pakistan.

First Period (1947-65)

Two trends, both upward and downward, in the Pak-Soviet relations, can be witnessed in the in post-independence, first period (1947-1965). In the early decades of the establishment of Pakistan, the Communist Party of Pakistan had a significant influence in the lower and educated middle classes of the society.  However, the witch hunt, followed by alleged involvement of poets and writers such as Sajjad Zahir, Sibt-e-Hasan and Faiz Ahmad Faiz along with some senior military officers in the Rawalpindi Conspiracy Case, in 1951, compelled Communist Party Cadres to go underground. However, the nationalist and progressive political organizations, considered pro- socialist/Soviet, such as National Awami Party (NAP) its student wings, Democratic Students Federation (DSF) and National Students Federation (NSF), both in the West and East of Pakistan, continued functioning.
Prime Minister of Pakistan, Laiqat Ali Khan (r.1947-1951), declining Soviet invitation to visit USSR in 1949, instead paid an official visit to USA. Moreover, holding of two sessions of the International Economic Conference at Karachi and Tehran, in 1949, was interpreted by many observers in the USSR as Pakistan’s active participation in the western efforts to create an anti-Soviet, anti-socialist block. Internally promulgation of a notorious law, the Public Safety Act, passed in 1951, resulted in the arrest of many left leaning leaders, allegedly involved in linguistic riots in former East Pakistan (Bangladesh). Pakistan’s participation in the US sponsored military- economic alliances, such as South-East Asian Treaty Organization (SEATO) and Central Treaty Organization (CENTO) further worsened the possibility of Pak-Soviet bilateral relations. Many analysts view, not very friendly Soviet position on Kashmir and Pukhtunistan, an outcome, of those hostile towards USSR and socialism, facts. Moreover, downing by the Red Army of the U2, US spy plane, operated from Badaber, Pakistan, in 1960, further alienated the Soviets.
Steps bringing the two countries closer included: establishment of diplomatic relations, followed by exchange of envoys between the two countries, in 1949-50; Soviet initiative, in 1956, offering technical and economic assistance, to build Steel Mills; visit of Soviet Deputy Premier to Pakistan, declaring resolution of the Kashmir problem according to the will of the people of Kashmir; reflected softening of Soviet policy towards Pakistan. In 1961, Pakistan was granted a loan worth $3 million for technical support in oil exploration. Some bye-agreements: covering operation of air services; exchange of cultural delegations; assistance for mechanization of agriculture; building power projects and promotion of technological and scientific knowledge, were inked. The Russian assistance to Pakistan to develop oil, gas and mineral resources was renewed in the 1960s with enhanced cooperation between the two countries. In the same year, the Soviet Union provided $519 million for the purchase of heavy machinery.

Second Period (1966-71)

During the 2nd period, in 1966, the Soviet Union played role of mediator enabling India and Pakistan to sign the Tashkent Declaration. The same year, under the barter system, Pakistan exported rice, jute, cotton, etc., while Soviet Union exported vehicles and agricultural machinery. These measures were aimed at improving bilateral relations. Pak-Soviet relations did improve following such confidence building measures following second visit of President Ayub Khan to the Soviet Union, in 1967. The hallmarks  included: Expression of harmony over major international issues; extension of mutual co-operation; confirmation of decamping US military bases on Pakistani soil; increased volume of bilateral trade to Rs. 7 million;  implementation of over 30 developmental projects, in Pakistan, funded and provided technical assistance by the Soviet Union. Moscow promised $200 million to implement Pakistan’s Fourth Five Years Plan (1970-1975) when General Yahya Khan visited USSR in 1970.
Issues adversely affecting Pak-USSR relations included: Pakistan’s facilitation of famous Henry Kissinger’s secret visit to China in 1971; Indo-Soviet Friendship Treaty of 1971, that enabling India to recieve $300 million annually; Pakistan’s opposition to the Soviet proposal of Asian Collective Security System, allegedly aimed against China and last but not the least Soviet role during East Pakistan Crisis, in 1971.

Third Period (1972-77)

In the 3rd period, Z. A. Bhutto visited the USSR twice, in a span of five years (1972-77), to give further impetus to Pak-Soviet relations. His first visit (16-18 March 1972) broke ice in the backdrop of East Pakistan Crisis, following the independence of Bangladesh. Both the countries agreed to restore Pak-Soviet trade, enhance cooperation in geological prospecting, building a metallurgical works in Karachi and help in power generation. They expressed unanimity of views on resolving the Arab-Israeli conflict,  withdrawal of foreign troops from Indo-China, termination of the arms race and keeping nuclear disarmament under effective control. They also called for a rational approach to solve contentious issues. The identity of views ensured Pakistan’s vote in United Nations.
Soviet economic assistance to Pakistan was significant in many ways since it transferred technology and did not attach political strings. The year 1973 witnessed a remarkable improvement in Pak-Soviet economic and scientific relations: visits of the Soviet economic delegations; arrival of Pakistani students to USSR; signing of cultural agreements and above all the inauguration of Karachi Steel Mills. In 1973, a number of Soviet economic delegations and steel experts visited Pakistan, USSR also wrote off credit utilized in East Pakistan, before 1971.
To boost trade between the two countries, a seven member Soviet delegation led by trade minister visited Pakistan, in 1973, envisaging a trade turnover of $ 12.4 million each way for 1973, $ 14.9 million during 1974 and 1975 each. In 1973, a Soviet embassy press release stated that Pakistan will import 2300 tractors from USSR. Other Soviet exports to Pakistan, in 1974, included road metalling machinery. In February 1974, Pakistan and the Soviet Union concluded a barter trade agreement. In 1974, a contract was signed in Islamabad with a Soviet firm for the purchase of machinery worth Rs. 2300 million. Another credit package of 160 million Roubles for Karachi Steel Mill was signed in December 1974. With the purpose of strengthening bi-lateral economic ties, several steps were taken from 1975-77. On February 1975, Soviet deputy minister for foreign trade visited Pakistan and a program was concluded for the exchange of goods. Before leaving for Moscow, the leader of the delegation said in Karachi that Pakistan and the Soviet Union will sign a five year trade agreement. In 1975, Pakistan and the USSR entered into an annual program of exchange of scientific expertise. Bhutto’s policies of nationalization and the tilt towards socialism were encouraged and praised by Arkhady Maulaninkov the Islamabad based Pravda correspondent. In May 1977 the Soviet trade delegation arrived in Islamabad and signed a trade protocol providing for an exchange of goods worth $ 15 million.

Fourth Period (1978-91)

Military dictator General Zia-ul-Haq overthrew democratically elected government on 5 July 1977. In the fourth period, Pak–Soviet relations nose-downed, following the Saur Revolution in Afghanistan and entered a new phase after Soviet military intervention in Afghanistan, in December, 1979. Soviet support in terms of 100,000 troops to a revolutionary Afghan regime in Pakistan’s neighborhood brought a radical change in the region. The Afghan issue became the main point of friction in Pak-Soviet relations. Ouster of Sardar Daud Khan in April 1978 by revolutionary PDPA, led by Noor Muhammad Tarakki, a well-known socialist had not even caused deterioration of relations to such a level. Pakistan recognized the government headed by PDPA and Pakistan’s internationally isolated military dictator, General Zia ul Haq, visited the Democratic Republic of Afghanistan, in September, 1978.
Despite a revolutionary change in Afghanistan, the then Finance Minister of Pakistan, Mr. Ghulam Ishaq Khan, visited Moscow in July 1978 and Soviet Union assured continued Soviet credit facility for Karachi Steel Mills. He lauded Soviet assistance and termed friendship with the Soviet Union, ‘a basic principle’ of Pakistan’s foreign policy. He also extended Mr. Alexai Kosygin, Soviet Prime Minister, invitation to visit Pakistan, which he accepted and expressed his intention to plan a state visit ‘in the near future’. By the end of 1978, influx of refugees from Afghanistan to Pakistan began. In March 1979, Soviet media began systematically accusing Pakistan of ‘interference in Afghanistan’s internal affairs’. By this time Afghanistan had become a pivotal issue in Pak-Soviet relations. Interestingly, on the eve of the Soviet invasion, visit to Afghanistan of Pak Foreign Minister, Mr. Agha Shahi had been scheduled, but was cancelled, following the Soviet action. Bilateral political friction notwithstanding, the Soviet Union did demonstrate a rather ‘business as-usual approach’ towards Pakistan. The Soviet Union sent delegations to inaugurate Soviet funded projects such as Guddu Thermal Power Station and the Karachi Steel Mills. Political hostility over Afghanistan did not adversely affect these projects rather bilateral trade increased by 25 %. The Soviet Ambassador kept roaming around and even offered Pakistan nuclear power plants. During last encounter at the UNO between Mr. Anrei Gromyko and Mr. Agha Shahi, in September 1980, though the Soviet Foreign Minister chided his Pakistani counterpart, “you seem to want to fight a war with us”, however, did invite him to visit Moscow for parleys. Soviets supported Democratic Republic of Afghanistan while Pakistan along with so called ‘free world’ provided overt and covert assistance to the Afghan Mujahideen waging jihad against the Soviet infidels in the 1980s.
 In November 1982, General Zia, visited Soviet Union, to participate in the funeral ceremony of President Brezhnev and openly expressed his views of having a peaceful Afghanistan. Despite Soviet friendly overtures towards Pakistan the military regime continued hostility towards Soviet communists and their puppets in Afghanistan. Pak-Soviet relations moved forward after Soviet withdrawal from Afghanistan and the restoration of democracy in Pakistan, in 1988. On 1st March 1990, the USSR again offered a nuclear deal to Pakistan to fulfil increased power generation needs. The Soviet Ambassador to Pakistan, V. P. Yakunin said, ‘once the required guarantees are provided, there is no harm in supplying a nuclear power plant to Pakistan’. The Production Minister of Pakistan, Shahid Zafar, immediately visited Moscow in response to the offer and discussed the issue, Foreign Secretary of Pakistan, Tanveer Ahmad, also paid a visit. However, owing to technological reasons, Benazir Bhutto’s regime preferred to secure a French deal which remained a non-starter.

Fifth Period Pak-Russia Relations (1992-2014)

Succeeding Soviet/ Russian Governments, including that of  President Boris Yeltsin continued strategic partnership with India, supplied spares and new equipment that strengthened their military relations. On the other hand USA had not only forbidden supply of new military equipment to Pakistan in 1990, following enactment of The Pressler Amendment, during Bush Administration, but also spares, maintenance, repair and up-gradation facilities of equipment supplied even prior to 1990. Pakistan had not been able to diversify its sources of military hardware supply, hence, succeeded in purchase of barely Agosta submarines and reconditioned, old Mirage 5 fighters from France. Not only due to the cash crunch but also fear of US sanctions, under the Pressler Amendment, played a significant role. Pakistan failed to secure purchase of Russian equipment and also faced huge difficulties in buying 300 tanks from Ukraine. It seems Pakistan’s repeated expressions of interest in Russian equipment were actually aimed at causing concern in the US, that in case of non-removal of the Pressler Amendment, Pakistan could buy Russian military equipment leading to further dwindling of American influence on the armed forces of Pakistan.
Moscow did not appreciate alleged role of Pakistani Intelligence Services: firstly as a promoter of war against Afghan Government; secondly, not only creating the Taliban and enabling them seize power in Kabul but also supporting them to extend control over 90 percent of the Afghan territory.  Russia also viewed with suspicion greater interest of Inter Services Intelligence, ISI, in supporting religious extremist organizations including: Markaz Dawa Al Irshad; Lashkar-e-Taiba, its militant wing, Harkat-ul-Mujahideen (HUM) and  the Tablighi Jamaat. Similar assistance, she believed, has been extended to anti-Russian religious extremists, zealously committing violent subversive activities in Chechnya, Dagistan, Tajikistan and Uzbekistan.
Moscow frequently expressed robust apprehensions over the eulogisation of Chechnyan extremist leaders in Pakistan and existence of training camps in Pakistan, and Taliban-controlled, Afghanistan. It was widely believed that during second tenure of the Prime Minister, Benazir Bhutto in the early 1990s, not only ISI but also religious extremist outfits covertly provided training to Bosnian Muslim groups, to fight the Serbs, in confidence with the US. Similar assistance was, allegedly, also extended to the Muslims of Kosovo Liberation Army (KLA) to fight Belgrade, during Government of Prime Minister, Nawaz Sharif. Russian officials suspected that Pakistan has been playing a formidable role in the American strategy to disintegrate Yugoslavia, despite her displeasure at Washington over invoking Pressler Amendment. Moreover, promoting dissatisfaction against Moscow amongst the Muslim population of Chechnya and Caucasus and Dagestan by Pakistan, Russia feared, were in consonance with US design to dismember the Russian Federation. Russia and the Central Asian Republics were eagerly watching future plans of the Taliban. Russia also expressed displeasure over inept Pakistani narcotics control authorities, unable to stop uninterrupted, enlarged smuggling of narcotics into Russia via the Central Asian Republics,   especially, Tajikistan.
Despite such inhibiting factors, tentative steps to improve bilateral relations were successfully initiated by PM Benazir Bhutto. To assure Moscow of Pakistan’s goodwill and build confidence a liaison relationship between the ISI and the Russian intelligence was created that shared counterterrorism and counter-narcotics information. This process continued following return to power of Nawaz Sharif in February, 1997, the two countries exchanged notes on the situation in Afghanistan during periodic consultations between the Afghan experts of the two Foreign Offices. Pakistan also supported association of Moscow in finding a political solution in Afghanistan.
In July, 1997, serious initiatives to enhance bilateral trade, previously limited to barely US$ 50 million, were agreed by the two sides during the visit to Moscow of the then Foreign Minister, Gohar Ayub Khan. Pakistan tried to sort out factors that delayed launch of  Badr II, meteorological satellite of Pakistan’s Space and Upper Atmosphere Research Commission (SUPARCO), by a Russian rocket.
The two Foreign Offices hotly contested in July, 1997, desirability of closer cooperation despite obstructing factors. The debate in Pakistan intensified, following Prime Minister Nawaz Sharif’s visit to the US in December, 1998, and failure in persuading the Clinton Administration to lift ban on the sale of new military hardware and spare parts of previously supplied equipment to Pakistan.
Russian Foreign Office mentioned informally to its counterpart in Pakistan that Russia shall not undermine the priority of its relations with India, still, she intends not to allow this to be a hurdle in improving relations with Pakistan. They, reportedly, hinted that Russia might not sell military equipment to Pakistan, however, need not forbid Ukraine and Belarus to sell military equipment to Pakistan. Resultantly, Pakistan’s contract of purchase of tanks with Ukraine was implemented and Belarus offered sale of tanks and aircraft during the visit of Vasily Borisovich Dolgoliov, the Deputy Prime Minister of Belarus to Pakistan, in November, 1998.
During his second tenure as Prime Minister, Mr. Nawaz Sharif visited Russia in April 1999. Prime Minister duly acknowledged Russia’s role as a ‘neighbour’ and a ‘global power’ in mediating disputes in the region, the two sides re-affirmed the need of global relation to move towards a balanced multi-polar world, free of confrontation, based on sovereign equality of all states, democratic values and justice. Rectifying imbalance in Pakistan’s foreign policy appeared still a distant and a rather abstract goal to critics advocating substantive gains from an opening towards Russia.
At security level, a new thinking in Islamabad and Moscow tended to promote closer understanding on security issues in Central and Southern Asia. Since Afghanistan, Kashmir and Tajikistan were three flashpoints in the politically volatile two regions, the understanding in Moscow that diplomacy, instead of war shall be used as an option to ensure the peaceful resolution of conflicts, provided a source of hope.
Security cooperation between Pakistan and Russia could take place in dealing with non-traditional security threats such as terrorism, narcotics and drug trafficking, illegal flow of light weapons, environmental pollution, energy and water conflicts and so forth. Another area of security cooperation between Pakistan and Russia could be to control sources of ethnic and religious extremism in the two countries. Traditionally, Russia has maintained its security and strategic interests in Central and South Asia and the visit of Nawaz Sharif did give an opportunity to the two countries to bridge the gap between their security perceptions. Moscow remained a closer security partner of India, but in the post-cold war scenario, there has been a greater need on the part of Islamabad and Moscow to replace traditional notions of security with rational and logical considerations.
The possibility of mediation and facilitation of Russia in resolving outstanding disputes between India and Pakistan, particularly Kashmir has often been discussed in the relevant circles. In Prime Minister Nawaz Sharif’s visit to Moscow also, there was talk about possible Russian role in promoting peace in South Asia, namely at the Indo-Pak level. Historical evidence in terms of Russian facilitation did exist in the shape of resolving Tashkent Declaration. But any possibility of Moscow’s helping hand or facilitation for resolving conflicts between India and Pakistan depends upon response of New Delhi. To alleviate the tension between India and Pakistan, Russia can encourage the two countries sustain the normalization process. Russia supported the Lahore Declaration and felt satisfied when India and Pakistan were involved in resolving their conflicts. Russia and Pakistan realize a greater need to support the peace process in Afghanistan and Tajikistan too. The joint statement issued by Russia and Pakistan after the conclusion of Prime Minister Nawaz Sharif’s visit to Moscow, led observers to believe hope that the two countries could work together to help resolve various regional conflicts.
In the area of economic and trade cooperation, the visit of Pakistan’s Prime Minister, Nawaz Sharif, in April, 1999, managed to break the logjam and three important steps were taken. Pakistan and Russia granted the Most Favored Nation (MFN) status to each other. Signed the agreement on trade and economic cooperation stipulating that both sides grant non-discriminatory treatment to each other in taxes, customs as well as method and transfer of  payments. The agreement was signed by Sartaj Aziz, Foreign Minister of Pakistan and the Russian Trade Minister, Georgy Gabunia on behalf of respective governments. The agreement excluded preferential treatment provided by each country under any special arrangements as in groups like SAARC. This replaced a barter trade agreement signed between the former USSR and Pakistan in 1956. Three points had emerged as an outcome of the visit of Prime Minister of Pakistan:  Firstly, an agreement on trade cooperation was signed between the federations of the chamber of commerce and industry of the two countries,   covering private sector’s arrangements of promotion of trade between the two countries. Secondly, the barter trade agreement was signed between the two governments. Thirdly, it was decided to create the Joint Ministerial Commission of the two countries to facilitate annual policy meetings at ministerial level and to examine joint ventures between the two countries. Pak-Russia ties in economic and commercial spheres have been in favour of Russia, though annual trade between the two countries did not exceed $75m, the real challenge has been to achieve a leap forward in bilateral trade. Prime Minister Nawaz Sharif took initiative of re-conciliation between the two countries in April 1999, visiting Russia after 25 years.
Deputy Minister of Foreign Affairs of Russia, Alexander Losyukov, visited Pakistan on 19 April 2001 and agreed to promote economic cooperation for peace and prosperity in the region. Edward S. Shevchenko, former Russian Ambassador in Pakistan, stated in 2001 that Russia offers support for laying Gas pipeline from Iran to India via Pakistan. In fact Russian Gasprom did express intent in this $4 billion project that led to signing in November 2002, a Memorandum of Understanding with the Ministry of Petroleum and Natural Resources of Pakistan. It might benefit Russian oil and gas companies, had they participated in the said project. Similarly, Russian Oil Company Rusneft and gas trader, Itera could also benefit from a commercially viable project of the Trans-Afghan Pipeline such as TAPI.
Russia can launch joint ventures to enlarge trade to improve existing relatively low trade volume between the two countries. The six member Russian parliamentary delegation visiting Pakistan in May, 2002 expressed intent to invest in Pakistan, particularly in the field of heavy machinery, construction equipment and agricultural products. Trade between the two countries has been fluctuating between: $63 million in 1998-1999, $93.34 million in 1999-2000, $69.64 million in 2000-2001, $83.45 million in 2001-2002, $60.47 million in 2002-2003 and $154.53 million in 2003-2004.
It has been noted that Pakistan’s trade with Russia, is a meager 0.5% of its global trade, meaning economic and trade relations between Russia and Pakistan are far short of their real potential. This fact was acknowledged by the Chairman of Export Promotion Bureau (EPB) of Pakistan at a seminar on ‘Pakistan’s Economy, Investment Opportunities and Pak-Russia Trade Relations, held in Moscow, in October, 2003.
Fiscal years, 1994-95 and 2003-04, have witnessed bilateral trade exceeding $150 million, i.e., $154.75 million and $154.53 million respectively. Bilateral trade rose, in 1994-95, owing to Russian sale of raw cotton to Pakistan along with iron and steel manufactures. In trade of $154.53 million, in 2003-04, Pakistan exported cotton fabrics, sports goods, toys, medical/surgical instruments, articles of textile materials and other commodities totaling $20.5 million. Russia exported fertilizers manufactures, paper and paper products, iron and steel, crude rubber, and machinery and its parts totaling $134 million. Suffice to say that the balance of trade had been much in favor of Russia, thus, making imperative upon Russia to allow special concessions to Pakistani exports and grant Pakistan most-favored-nation status in trade and investments. The prompt settlement of issues such as, debt restructuring of Pakistan, settlement of financial obligations, and promotion of inter-bank relations, required to be urgently and meaningfully addressed. Pak-Russia Intergovernmental Commission on Trade, particularly, the Joint Economic Commission, established in 2000, needs to be re-vitalized to further strengthen, mutually beneficial economic cooperation, to pave way to bring the two countries closer, and improve bilateral relations, to promote stability and peace in the region.
A three-member Russian delegation of heavy mechanical industries visited Pakistan, in December 2003. They visited Heavy Mechanical Complex at Texila, Pakistan Machine Tool Factory Karachi, and Spinning Machine Company Lahore and indicated willingness to provide expertise to textile sector of Pakistan. Russian automobile manufacturers can also invest in the automobile sector of Pakistan. In 2003, the Federal Minister of industry and production invited Russian automobile manufacturers to invest in assembling Russian-made cars and tractors in Pakistan. Russia can also supply special machinery to produce spare parts of tractors and automobiles. The Russians were also undertaking expansion work in 2003 at the Karachi Steel Mills established with their assistance in the 1970s.
General Parvez Musharaf visited Moscow in February 2003 and the then Prime Minister of Pakistan Mir Zafarullah Khan Jamali in the following year. Surprisingly, after 38 years of Russian PM Kosygin’s visit, in 1969, the Russian Prime Minister, Mikhail Fradkov, visited Pakistan on 13th April 2007. Russian Prime Minister, Mikhail Fradkov and the Prime Minister of Pakistan Shoukat Aziz exchanged views on various projects. Pakistan and Russia agreed to conclude, an investment treaty, and agreement to avoid double taxation, to further expand trade and economic ties. Both the countries signed: an agreement of cooperation in combating human trafficking; smuggling of narcotics, drugs and psychotropic substances. Three memoranda of understanding were also signed, to boost cooperation in various sectors, including: laying of new railway tracks; supply of sleepers and signaling system; up-gradation of Mughal Pura Bridge Workshop; and setting up metro railways, in major cities of Pakistan. State level contacts offer certain prospects between the Russian Federation and Pakistan to establish more cordial relations. Strong demand in Russian market has accelerated potato exports from Pakistan to Russia. From January 2010 to February 16, 2010, around 25,000 ton potato had been exported fetching, around $7.5 million, at an average price of, $300 to $315, per ton. Exporters were optimistic of high potato exports during January–May, 2010, owing to strong demand from Russia, where a dry spell resulted in crop failure.
The Russian Ambassador in Pakistan, Andry Bandnik, on December 11, 2010, at launching of Pakistan–Russia Business Forum in Karachi, spoke about his government’s desire to strengthen economic ties with Pakistan, enhancing bilateral trade and exchange of technology. He stated that Russian exports to Pakistan primarily fertilizers, wheat, paper goods and rubber stood at $ 346 million. Russian technology used in oil exploration, railways, power plants and steel sectors, may assist Pakistan, he opined. Tariq Rafi, another member of the Forum, noted that Pakistan’s exports to Russia stood at $ 600 million, still quite low and insignificant, keeping in view the potential. Earlier, on November 7, 2010, a Russian delegation had expressed keen interest in gas, mining, agriculture, livestock, healthcare and engineering sectors in Sindh. At the Sindh Board of Investment, holding parleys with the Advisor to Chief Minister Sindh on Investment, Mr. Zubair Motiwala, the head of the delegation, Russian National Investment Agency’s Chief Executive Officer, agreed to explore possibilities of investing in these fields. Bright prospects of Russian investment existed in Pakistan.
Pakistan and Russia decided to enter into a new phase in defense cooperation, following first ever visit of a Pakistani Chief of the Air Staff, Air Marshal Tahir Rafiq Butt to Russia on August 15, 2012. He visited various air force related Russian defense installations. He mentioned that Pakistan already in use of Russian made helicopters seeks diversification and expansion in this field, Russian choppers have been providing useful service to defense forces of Pakistan.
Russia also agreed to invest up-to $500 million for expansion, rehabilitation and modernization of Pakistan Steel Mills. A Pakistani delegation visited Moscow to settle financial and technical terms of the project led to agree on a memorandum of understanding, signed by the two countries on October 3, 2012. It envisions modernization, reconstruction and expansion of production capacity of the Pakistan Steel by up to 1.5 million metric tons. Russian company ‘Tyazhpromexport’ had helped establish this plant and shall carry out technical audit. Chairman of the Board of Investment, Saleem H. Mandviwalla and Russian Trade Representative in Pakistan, Yuri M. Kolsov, had signed a formal contract in December, 2011 in this regard. In the energy sector, Genco entered into a framework cooperation agreement with the Russian Company, Technopromexport, to convert the Muzaffargarh Thermal power plant from furnace oil to coal and to construct a new power plant at Jamshoro. Both the countries agreed to consider setting up of a new plant with a capacity of 500 MW to 600 MW. They agreed that 15% of funds will be provided by Genco and 85% through a loan against a sovereign guarantee of Pakistan. Urdu–Russian Dictionary, compiled by Tashmirza Khalmirzaev, a Diplomat of the former Soviet Union was jointly launched by Russian Academy of Sciences and National Language Authority on 2.8.2012 in Islamabad.
In October 2012, the Chief of Army Staff, General Ashfaq Pervaiz Kayani visited Moscow on the invitation of Chief of General Staff of the Armed Forces of the Russian Federation, General Nikolai Makarov.  Pakistan’s Army Chief’s visit to Russia had attained conspicuous significance in the wake of a sudden calling off the visit of Russian President Vladimir Putin to Pakistan for a quadrilateral summit of countries of the region. Despite this setback, General Kayani’s visit took place, according to the understanding of the military command of the two countries. The importance of the visit could be gauged looking at the schedule of engagements of the Army Chief, in Russia. It provided him an opportunity to have deliberation on political level and close interaction with the military leadership. General Kayani was taken to sensitive defence installations and troop’s engagements. The visit opened vistas of cooperation in the defence arena and enabled both sides to discuss extensively bilateral relationship and regional perspectives.
Pakistan eagerly looked forward to the landmark visit of the Russian President, its postponement did shock Pakistan, raising a few questions about issues whose impact transcend Islamabad’s bilateral relations with Moscow. To add to Pakistan’s distress, postponement of President Vladimir Putin’s visit without indicating future time frame, raised doubts whether the visit will ever happen? Though, President Putin’s decision resulted into annulment of the quadrilateral summit involving Afghanistan, Pakistan and Tajikistan, which has been perhaps less worrying; the greater alarm expressed was regarding the direction Pak-Russia relations may lead to. The Foreign office shall determine, why the Russian president chose not to visit Pakistan? Precise reasons of Russia’s unhappiness may not be too difficult to discern: Moscow felt disappointed over Islamabad’s delayed response to numerous vital projects, especially in energy sector, Russia expressed interest including plan to transmit electricity from Tajikistan to Pakistan, and construction of rail-road links. Also cause for annoyance has been Pakistan’s dwindling interest in the Iran gas pipeline on which Tehran has completed construction inside its territory with Russian help.  Though, Islamabad officially remains committed, however, Moscow has not failed to note Islamabad’s attitude in terms of advertising tenders and awarding contract of project under American pressure.  
Kept on the back burner for a longer time, the relations with Russia seemed to find a new impetus when President Asif Ali Zardari visited Moscow in 2012. Projects, Pakistan has shown interest in seeking Russian assistance, include: Expansion of Pakistan Steel Mills and several infrastructure related projects. Despite Putin government’s willingness, it seems Pakistan has not completed enough spade-work to start these projects. Russia has permitted import of citrus fruit from Pakistan with effect from 24th February, 2014. This will increase $20 million instant financial benefit to the Pakistani exporters much more shall follow in due course. According to media reports, Pakistan Embassy in Moscow has consistently been struggling to achieve this goal and had met the head of Russian Sanitary Service Department, Dankvert Sergey Alexeevich and Rosselkhoznadzor in this regard. Consequent upon these meetings, the head of Federal Service, partially lifted  ban on Pakistani Fruit Imports. According to a Press Release, members of Fito-Agro Centre of Russia visited Pakistan in this context in January, 2014 and talked to concerned officials on the increase of agricultural imports from Pakistan and informed the Pakistan Embassy in Moscow that ban over all agricultural products barring potatoes was lifted on 24th February, 2014.

Conclusion

The inter-state relations between Pakistan and the former Soviet Union and/or present day Russian Federation had never been finding an easy track. Though currently the two countries hold similar opinions on major strategic international issues, such as: support to the concept of a multi-polar world, supremacy of the role of UNO; disapproval of unilateral actions and use of force to change the current international system; struggle against terrorism and combating illicit narcotic’s production, trafficking; illegal migration of human beings, strengthening of nuclear nonproliferation and push forward processes of regional cooperation. In the past relations suffered due to the idiosyncrasies and notions such as:  Soviet Communists/Russians did not support creation of Pakistan; use of Soviet Union/Russia by Pakistan to blackmail the West and extract concessions; Pakistan joining anti Soviet imperialist alliances SEATO and SENTO; alleged Soviet/Russian support to India on Kashmir; Soviet/Russian role in the creation of Bangladesh and Pakistan’s role in bleeding the Soviets/Russians in Afghanistan.  
From 1947 to 1960 Pakistan’s close military cooperation with USA remained a major cause of worsening relationship. In the mid-60s Pakistan’s military ruler, Field Marshal Mohammad Ayub Khan tried to redress, Soviet Union positively responded by facilitating Tashkent Peace Declaration between India and Pakistan in 1966. Some cooperation between the two countries began in the field of Defense and economy, however, internal instability in Pakistan and alleged USSR-India nexus to dismember Pakistan in 1971, resulting in the creation of Bangladesh, sealed the fate of improving relations between both the nations.
Zulfikar Ali Bhutto, flag-bearer of ‘bilateralism’, in the foreign affairs visited Soviet Union in March 1972 and October 1974. Not only he laid foundation but multiplied Pak-Soviet cooperation too in sectors such as science and technology, arts, culture, economy and education. The land mark had been package of 160 million Rubles for Pakistan Steel Mills, Karachi. Ceaseless gestures of Soviet friendship towards Pakistan including: barter trade agreements; exchange programmes in the fields of science, education, and training of Pakistani technicians and engineers in Soviet Union, to effectively run the Soviet-aided technical programmes in Pakistan; continued, in1975-6.
In Pakistan, occupation of power by General Muhammad Ziaul Haq in July 1977; Saur Revolution; a pro-Soviet military coup in Afghanistan in April 1978, and Soviet armed intervention in Afghanistan, in December 1979, re-landed Pakistan in the formerly estranged American camp. Ensuing jehad (holy war)  in Afghanistan against Soviet/Russian infidels, aided and abbeted by Pakistan, clamped for almost two decades, fate of cooperation between Pakistan and Russia. 
In the 90s Pakistan and Russian Federation, the successor state of Soviet Union, wasted opportunities, to initiate ties without idiosyncrasies, adversely affecting them, and to strengthen further in almost every field, particularly energy and technology. However, the level of Pakistan - Russia relations did not climb much since Russia was more inward looking and the thaw required vigorous efforts from both sides. The Pak-Russia rapprochement envisaged and envisioned by Presidents Pervaiz Musharraf and Vladimir Putin in February 2003, in Moscow, has not yet been realised.  Much has to be done to expand bilateral ties; to address problems of conflict resolution; and disarmament, particularly in nuclear sphere, in the region. Pakistan’s inclusion into the SCO, facilitation of the closer interaction of Russia with ECO, OIC and SARRC may serve as important forums to develop political interaction between Pakistan and Russia. Granting Russia, Most Favored Nation Status, by Pakistan and consideration of mutual lowering of tariffs shall promote bilateral economic co-operation. Both Pakistan and Russia may certainly benefit if they cooperate in the field of heavy industry, oil and gas, aerospace technologies as well as textile and agriculture. Increased exchange of information; people to people contact; creating regional systems of international relations amongst the Central Asian countries, Afghanistan, Pakistan, Russia and China may be steps in further strengthening ties.

Source: http://www.asian-defence.net/2014/06/russia-lifts-arms-embargo-from-pakistan.html

It seems, both Pakistan and Russia, following high level visits of Pakistani Chiefs of Air and Ground forces have agreed to enter into agreements to purchase Russian made military equipment, including MI35 Helicopters. According to Russian Ambassador Alexey Y. Dedov, Russia is mindful of increased terrorism in Pakistan and will assist Pakistan in combating terrorism by supplying military hardware. Pakistan has ordered twenty five (25) MI 35 Helicopters and will be delivered in due course. This may serve as a prelude to the beginning of broader cooperation between the two countries and may lessen economic, technological and defense difficulties of Pakistan.

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Websites
 
http://www.asian-defence.net/2014/06/russia-lifts-arms-embargo-from-pakistan.html
http://tribune.com.pk/story/719921/russia-to-supply-mi-35-helicopter-to-pakistan/
http://www.asian-defence.net/2014/06/russia-lifts-arms-embargo-from-pakistan.html.
http://tribune.com.pk/story/719921/russia-to-supply-mi-35-helicopter-to-pakistan/