Pakistan paves way for trade with Russia by settling Soviet-era debt

Islamabad has repaid Moscow the $93.5 million (Rs 1,442 billion) debt pending since the collapse of the Soviet Union. The issue was a major hurdle in boosting the country's trade ties with Russia.

The trade dispute resolution will pave the way for billions of dollars in Russian investments in Pakistan, said the country's official.

Under the agreement, the Pakistani government was bound to return $93.5 million to Russia within 90 days of the signing and clear pending Russian exporters' claims to the tune of $23.8 million, as per settlement.

In December, the two countries inked their largest-ever cooperation deal, worth billions of dollars, to expand trade and business. It includes huge investments in energy, rail and steel industries.

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