| Foreign Affairs Desk | June 2025 | 8 min read |
| ⚡ QUICK TAKEAWAYS |
| • Pakistan and Russia have agreed to sign an Economic Cooperation Programme covering the period up to 2030. |
| • A readmission agreement signed in Bishkek is expected to streamline visas and boost people-to-people contacts. |
| • Russia has proposed connecting the International North-South Transport Corridor (INSTC) with Gwadar Port. |
| • Bilateral trade stands at approximately $1.3 billion — a figure former ambassador Masood Khan says must rise substantially. |
| • Four Shehbaz-Putin meetings in recent years signal high-level political commitment to expanding the relationship. |
Pakistan and Russia are moving to formalise a deepening economic relationship with a cooperation programme that will run to the end of the decade. Energy Minister Awais Ahmed Khan Leghari, speaking at a high-level webinar on bilateral relations, described the shift in terms that would have seemed improbable not long ago: a partnership that has travelled from the shadow of Soviet-era mistrust to what he called a reliable friendship, backed by four head-of-government meetings, active institutional channels across multiple sectors, and now a structured economic roadmap through 2030.
| $1.3B
Bilateral Trade current volume |
2030
Cooperation Horizon new programme target year |
4
PM–President Meetings Shehbaz–Putin summits |
The Cooperation Programme and What It Covers
The centrepiece of the announcement is the Economic Cooperation Programme extending through 2030 — a framework agreement that will serve as the formal architecture for expanding bilateral ties across trade, energy, technology and connectivity. Leghari described it as a major milestone in broadening economic relations, though the signing has not yet taken place. The programme is intended to provide structure and accountability for cooperation that has so far developed through individual agreements and institutional channels rather than a comprehensive long-term plan.
Alongside the economic programme, a readmission agreement signed in Bishkek is expected to ease movement between the two countries. Leghari said the agreement would improve visa facilitation, boost business engagement, and promote greater exchanges between Pakistani and Russian citizens. Readmission agreements — which establish protocols for the return of nationals who have entered a country without authorisation — are typically a prerequisite for more open visa arrangements, making this signing a potential precursor to a broader mobility framework.
| 🏛️ THE IGC: HOW THE RELATIONSHIP IS MANAGED
The Pakistan-Russia Intergovernmental Commission (IGC) serves as the institutional anchor for the bilateral relationship. As Pakistan’s co-chair, Minister Leghari maintains regular engagement with Russian Energy Minister Sergei Tsivilev. The IGC coordinates cooperation across energy, trade, and other sectors, providing a standing mechanism for managing the relationship at the working level between high-level summits. |
Bilateral Cooperation Areas
| Sector | Current Status and Detail | Progress |
| Energy | Central pillar of bilateral ties; Pakistan-Russia Energy Minister channel active via IGC | Active |
| Trade & Commerce | Current trade at $1.3bn; structural barriers including payment mechanisms under discussion | Expanding |
| Defence | Cited by Minister Leghari as a key area of leadership-level cooperation | Active |
| Technology | Included in Leghari’s list of areas where both leaderships have expanded cooperation | Developing |
| Transport / Connectivity | INSTC link to Gwadar proposed by Russian Deputy PM Overchuk; complements BRI | Proposed |
| Security / CT | Regular consultations on security, strategic stability and counterterrorism via institutional channels | Active |
| Multilateral Coordination | Common positions at UN and SCO in support of multipolar global order | Active |
| People-to-People | Readmission agreement signed in Bishkek expected to ease visa facilitation | New |
Energy as the Anchor of the Relationship
Energy cooperation has been the primary driver of the Pakistan-Russia relationship in recent years, and Leghari’s remarks reinforced its centrality. As both Pakistan’s Energy Minister and co-chair of the IGC, Leghari sits at the intersection of the two countries’ most consequential bilateral channel. Special Assistant Tariq Fatemi described energy cooperation as the beginning of a new chapter in Pakistan-Russia relations — language that suggests the energy portfolio is seen not merely as one sector among many but as the foundation on which broader economic ties are being built.
Pakistan has been working to diversify its energy partnerships and reduce dependence on any single supplier or corridor. Russia’s position as a major energy producer, combined with Pakistan’s chronic energy shortfall, creates a natural basis for cooperation. The specific contours of energy cooperation — whether in the form of discounted crude, LNG supply agreements, infrastructure investment, or technology transfer — were not detailed in the minister’s remarks, but the bilateral energy channel’s institutional depth suggests active negotiations on multiple fronts.
Trade Ambitions and the Payment Problem
Bilateral trade between Pakistan and Russia currently stands at approximately $1.3 billion — a figure that former ambassador Masood Khan described as far too low given the potential of the relationship. Khan argued that Pakistan should position itself as Russia’s gateway to the Arabian Sea, a framing that situates the bilateral relationship within the broader context of Russia’s interest in accessing warm-water ports and South Asian markets.
The $1.3 billion figure is modest by the standards of Pakistan’s other major trading relationships, and both sides appear to recognise this. Leghari acknowledged that both countries are working to address structural barriers to trade, singling out payment mechanisms as a particular challenge. This is a reference to the practical difficulties of conducting trade in a sanctions environment — Russia’s exclusion from SWIFT and Western financial systems means that bilateral transactions require alternative settlement mechanisms, which add friction and cost to trade flows.
Resolving payment infrastructure is a prerequisite for the trade expansion both sides are describing. Countries that have expanded trade with Russia since 2022 have done so primarily through local currency settlement, barter arrangements, or use of alternative banking channels. Pakistan and Russia are working within the same constraints, and the Economic Cooperation Programme will likely need to include explicit provisions for payment mechanisms to achieve the trade volumes officials are targeting.
| 🌐 INSTC–GWADAR: THE CONNECTIVITY PROPOSITION
Russia’s proposal to connect the International North-South Transport Corridor with Pakistan’s Gwadar Port is strategically significant. The INSTC is a multimodal route linking Russia to South Asia via Azerbaijan, Iran and the Indian Ocean. Extending it to Gwadar would give Russia a direct outlet to the Arabian Sea while giving Pakistan access to Russian and Central Asian markets via a non-Western controlled corridor. Leghari welcomed the proposal and noted it could complement China’s Belt and Road Initiative. |
Regional Connectivity and the Gwadar Dimension
One of the more strategically charged proposals to emerge from the bilateral engagement is Russian Deputy Prime Minister Alexey Overchuk’s suggestion to connect the International North-South Transport Corridor with Gwadar Port. Leghari welcomed the proposal warmly, noting that such a link could complement China’s Belt and Road Initiative and enhance regional trade flows.
The INSTC, originally conceived as a route from Mumbai to Moscow via Iran and Azerbaijan, has gained renewed strategic attention since 2022 as Russia seeks trade corridors that bypass Western-controlled infrastructure. Extending it to Gwadar would represent a significant expansion of the corridor’s geographic scope and would draw Pakistan into a connectivity architecture that links Russia, Iran, and China — a grouping that carries obvious geopolitical implications alongside its trade logic.
For Pakistan, Gwadar’s positioning as a connectivity hub is a consistent strategic priority. Bringing Russian traffic through Gwadar alongside Chinese investment under CPEC would strengthen the port’s commercial viability and reinforce Pakistan’s case for its centrality in regional trade. The proposal is in early stages, but the fact that it was raised at the Deputy Prime Minister level and received a formal ministerial welcome suggests it is being taken seriously.
Diplomatic Positioning and Multilateral Alignment
Leghari’s address situated the bilateral relationship within a broader reading of global politics. He noted that Pakistan and Russia frequently coordinate positions at the United Nations and the Shanghai Cooperation Organisation in support of what he described as a more inclusive and multipolar global order — language that aligns with the foreign policy framing favoured by both Moscow and Beijing in the current international environment.
The minister also noted that Russian leaders had appreciated Pakistan’s recent diplomatic efforts aimed at reducing tensions between Iran and the United States. This reference is significant: it positions Pakistan as a back-channel diplomatic actor valued by Russia for its ability to engage with parties that Moscow cannot directly approach in the current geopolitical climate. It also reflects a broader Pakistani diplomatic posture of engagement across blocs — maintaining ties with Western partners while deepening engagement with Russia and China.
Special Assistant Tariq Fatemi reinforced this framing, noting that both countries had taken similar positions on the Middle East conflict and stressing the importance of moving beyond the negative experiences of the past. Former ambassador Masood Khan, while broadly supportive of expanding the relationship, also raised regional security concerns, alleging continued Indian aggression and terrorism emanating from Afghan soil — remarks that add a security dimension to a primarily economic and diplomatic discussion.
Why This Matters Now
The timing of the Economic Cooperation Programme announcement reflects a conjunction of factors. Pakistan is actively diversifying its foreign economic relationships as it navigates post-IMF recovery conditions that require expanding trade and investment flows. Russia, under sustained Western sanctions, is actively seeking to deepen ties with non-Western partners across South and Central Asia. The two countries’ interests in each other have never been more structurally aligned.
The 2030 horizon of the cooperation programme is also meaningful. It extends beyond the current political cycle in both countries and signals an intent to build institutional depth rather than simply manage a transactional relationship. Whether the programme’s ambitions translate into measurable trade and investment growth will depend largely on resolving the payment mechanism challenge — but the political will, as evidenced by four head-of-government meetings and active IGC engagement, appears genuinely present on both sides.
Disclaimer: This article is based on statements made at the webinar ‘Pakistan-Russia Bilateral Relations in the Context of the Changing Global Order’ and related reporting. Quotes and positions attributed to speakers reflect their remarks as delivered. The Economic Cooperation Programme and transport corridor proposals referenced are subject to formal signing and implementation. This article does not represent the official positions of any government.
