Pakistan and Belarus Strengthen Trade Relations with Eight MoUs

November 26, 2024 Mahi Bukhari

ISLAMABAD – Pakistan and Belarus have taken significant steps towards enhancing bilateral trade relations by signing eight Memorandums of Understanding (MoUs) and agreements across various sectors. The signing ceremony, held during the Pakistan-Belarus Business Forum, was aimed at unlocking the full potential of trade between the two countries. The agreements, signed prior to the arrival of the Belarusian president in Islamabad, are expected to foster deeper economic ties and pave the way for mutually beneficial partnerships.

Key Highlights of the MoUs and Agreements

The Pakistan-Belarus Business Forum, co-chaired by Commerce Minister Jam Kamal from Pakistan and Minister of Energy Aleksei Kushnarenko from Belarus, marked a significant milestone in bilateral trade. These MoUs and agreements span across multiple sectors, including food, pharmaceuticals, automotive, logistics, and agriculture. Here’s a breakdown of the key collaborations:

1. Five-Year Collaboration Between JCS Bellakt and Nutrifood & Pharmaceuticals

A long-term agreement was signed between JCS Bellakt (a prominent Belarusian company) and Nutrifood & Pharmaceuticals (a Pakistani firm). The agreement establishes a five-year collaboration, focusing on the exchange of food products and pharmaceutical goods between the two countries.

2. Product Supply Agreement Between JSC Minsk Motor Plant and Shahzad Trade Links

A key supply agreement was also forged between JSC Minsk Motor Plant and Shahzad Trade Links, set to begin in 2025. This agreement highlights the increasing demand for automotive products in Pakistan and is expected to boost trade between the two nations.

3. Tyre Sales Deal Between JSC Belshina and Shahzad Trade Links

An agreement was reached for JSC Belshina, a leading manufacturer of tyres in Belarus, to collaborate with Shahzad Trade Links for the sale and distribution of tyres in the Pakistani market. This will open up opportunities for the automotive sector in Pakistan to source quality tyres from Belarus.

4. Pharmaceutical Registration and Supply Agreement Between RUE Belmedpreparaty and Bio-Medical System

A crucial agreement was signed between RUE Belmedpreparaty, a Belarusian pharmaceutical company, and Bio-Medical System from Pakistan. The agreement focuses on pharmacy registration and the supply of essential medicines, which will ensure the availability of quality pharmaceutical products in both countries.

5. Metal Supply Deal Between JSC Beltsvetmet and Raas International Trading

JSC Beltsvetmet, a major player in the Belarusian metal industry, signed a memorandum with Raas International Trading for a metal supply deal set to take place in 2025. This collaboration aims to enhance trade in metals, which are crucial for various industries, including construction and manufacturing.

6. Agricultural Machinery Cooperation Between JSC Tractor Works and Green Corporate Initiative

The agricultural sector also witnessed a significant deal with JSC Tractor Works and Green Corporate Initiative agreeing to cooperate on agricultural machinery. Belarus is known for its advanced agricultural technology, and this partnership will help modernize Pakistan’s agriculture sector.

7. Logistics Collaboration Between RUE Beltamozh Service and National Logistic Corporation

In the logistics sector, RUE Beltamozh Service and Pakistan’s National Logistic Corporation (NLC) have agreed to collaborate. This partnership will enhance the efficiency of logistics services, facilitating smoother trade between the two nations.

8. Strengthening Trade in Light Industrial Goods and Food Products

The MoUs also focused on the exchange of light industrial goods and food products, with both countries recognizing the demand for these goods in their respective markets. Belarusian agricultural machinery, industrial products, and dairy goods are expected to be highly sought after in Pakistan, while Pakistani food products and light industrial goods will find a market in Belarus.

Impact of the MoUs on Pakistan-Belarus Trade Relations

These agreements mark a new chapter in the economic relationship between Pakistan and Belarus. Historically, the trade volume between the two countries has been low, but these recent MoUs are expected to significantly boost bilateral trade.

Trade Imbalance: Pakistan’s Exports and Imports with Belarus

According to recent data, Pakistan’s exports to Belarus fell by 10.23%, from $2.005 million in FY23 to $1.798 million in FY24. On the other hand, imports from Belarus surged by a staggering 393%, reaching $27.637 million in FY24 compared to $5.601 million the previous year. This trade imbalance highlights the need for diversification in trade, with both countries looking to address this gap.

Commerce Minister Jam Kamal highlighted the importance of diversifying trade to tap into new growth sectors. He emphasized that there is significant untapped potential in industries such as food, pharmaceuticals, textiles, logistics, and energy, and these MoUs will help foster growth in these areas.

Pakistan’s Vision for Trade Diversification

During the forum, Minister Kamal stressed that there is a need for Pakistan to diversify its trade in order to reflect the economic potential of the two countries. He also pointed out that the Pakistani government is open to foreign investments in various sectors, including energy, infrastructure, telecommunications, manufacturing, minerals, ICT, and agriculture. These priority sectors provide an excellent opportunity for Belarusian companies to invest in Pakistan.

Opportunities for Belarusian Companies in Pakistan

Belarusian companies are also expected to benefit significantly from these MoUs. Minister Aleksei Kushnarenko pointed out that Belarusian products such as agricultural machinery, industrial goods, petrochemical products, and dairy items are already in demand in Pakistan. Additionally, light industrial goods and food products from Pakistan are sought after in Belarus, providing opportunities for Pakistani businesses to expand their exports.

What the Future Holds for Pakistan-Belarus Trade Relations

The signing of these eight MoUs is just the beginning of a growing economic relationship between Pakistan and Belarus. With both countries eager to strengthen their economic ties, it is expected that more agreements will be signed in the near future, covering additional sectors such as technology, energy, manufacturing, and infrastructure.

Key Areas of Focus for Future Collaboration

Energy and Infrastructure: Both countries have expressed interest in expanding cooperation in the energy sector, which includes renewable energy, petroleum, and natural gas. Additionally, there is potential for collaboration in infrastructure development, particularly in the construction of roads, bridges, and other critical infrastructure.
Textiles and Pharmaceuticals: Textiles and pharmaceuticals are also expected to be major areas of future collaboration. Belarus has a strong industrial base, while Pakistan is well-known for its textile industry and rapidly growing pharmaceutical sector.
Investment and Economic Cooperation: Both countries are committed to creating a conducive environment for business and investment, which will benefit companies in both nations. The signing of these agreements is a clear signal that both countries are looking to invest in long-term economic cooperation.

FAQs about Pakistan-Belarus Trade Relations

1. What are the key areas of collaboration between Pakistan and Belarus?

The key areas of collaboration between Pakistan and Belarus include food, pharmaceuticals, agriculture, automotive, logistics, and industrial machinery.

2. How has the trade volume between Pakistan and Belarus changed recently?

Pakistan’s exports to Belarus decreased by 10.23% in FY24, while imports from Belarus increased by 393%, highlighting the need for trade diversification.

3. What sectors are open for foreign investment in Pakistan?

Pakistan is particularly open to foreign investment in sectors such as energy, infrastructure, telecommunications, manufacturing, minerals, ICT, and agriculture.

4. How will the MoUs affect the agricultural sector in Pakistan?

The collaboration between JSC Tractor Works and Green Corporate Initiative will introduce advanced Belarusian agricultural machinery to Pakistan, enhancing the country’s agricultural productivity.

5. What opportunities exist for Pakistani businesses in Belarus?

Pakistani businesses have the opportunity to export light industrial goods, food products, and pharmaceuticals to Belarus, which are in demand in the Belarusian market.

Conclusion

The signing of these eight MoUs marks a significant step towards enhancing the economic relationship between Pakistan and Belarus. These agreements will not only diversify trade between the two nations but also pave the way for greater cooperation in various sectors, creating ample opportunities for businesses in both countries.