Russia calls Pakistan ‘natural ally’ in energy and economy, eyes August cargo rail link

Russian Deputy Prime Minister Alexei Overchuk (fourth from right) meets Pakistan's Special Assistant to the Prime Minister (SAPM) on Foreign Affairs, Tariq Fatemi (fourth from left), and SAPM on Industries and Production, Haroon Akhtar Khan (third from left), in Moscow, Russia, on July 9, 2025. (@ForeignOfficePk/X)
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Updated 10 July 2025
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Russia calls Pakistan ‘natural ally’ in energy and economy, eyes August cargo rail link

  • Pakistani delegation attends industrial fair, proposes regional rail corridor via Uzbekistan
  • Talks held on establishing new steel mill in Karachi as part of broader industrial cooperation

ISLAMABAD: A top Russian official on Thursday described Pakistan as an “important partner” in the region’s economic and energy development and called the two countries “natural allies” during a meeting in Moscow, according to an official statement issued by the foreign office in Islamabad.

The remarks were made by Russian Deputy Prime Minister Alexei Overchuk during an interaction with Special Assistant to the Prime Minister (SAPM) on Foreign Affairs, Tariq Fatemi, and SAPM on Industries and Production, Haroon Akhtar Khan.

The delegation is currently in Moscow it attend INNOPROM, Russia’s largest annual industrial trade fair, which brings together government delegations, business leaders and technology firms from over 30 countries to explore partnerships in manufacturing, engineering and high-tech industries.

During the meeting, the Pakistani official said relations with Russia remained a key foreign policy priority for Islamabad. Overchuk also recalled his visit to Pakistan last year to attend the Shanghai Cooperation Organization (SCO) Summit where he was hosted by Prime Minister Shehbaz Sharif.

“Characterizing Pakistan and Russia as ‘natural allies’, he stressed that President [Vladimir] Putin considered Pakistan as an important partner in the growth and development of economy and energy in the region,” the foreign office said in a statement released after the meeting.

“He also highlighted the significance of important connectivity projects between two countries, such as the railway connectivity between Uzbekistan, Pakistan and Russia, and the launching of pilot cargo train between Pakistan and Russia in August 2025,” it added.

The two sides also discussed regional and international developments, including the situation in South Asia, Afghanistan and the Middle East. They reaffirmed their commitment to strengthening cooperation at multilateral forums.

Prime Minister Sharif’s adviser on industries and production highlighted the government’s investment-friendly policies and ongoing discussions on establishing a new steel mill in Karachi, describing it as a potential “leap forward” in Pakistan-Russia cooperation and a revival of a key legacy project.

Originally built in the 1970s with Soviet assistance, the Pakistan Steel Mills stood for national self-sufficiency for decades before becoming non-operational in 2015 due to prolonged financial mismanagement, political interference and mounting losses. Talks are now underway between the two countries to launch a new steel mill project in Karachi.

Welcoming the high-level visit, Russian Deputy Prime Minister Alexei Overchuk said President Putin remained committed to expanding cooperation with Islamabad across all major sectors.

He also conveyed that the Russian president looked forward to meeting the Pakistani prime minister on the sidelines of the upcoming SCO-Council of Heads of State summit in Tianjin, China, later this August.


Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

Updated 05 December 2025
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Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

  • Pakistani officials, Binance team discuss coordination between Islamabad, local banks and global exchanges
  • Pakistan has attempted to tap into growing crypto market to curb illicit transactions, improve oversight

ISLAMABAD: Pakistan’s finance officials and the team of a global cryptocurrency exchange on Friday held discussions aimed at modernizing the country’s digital payments system and building local talent pipelines to meet rising demand for blockchain and Web3 skills, the finance ministry said.

The development took place during a high-level meeting between Finance Minister Muhammad Aurangzeb, Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib, domestic bank presidents and a Binance team led by Global CEO Richard Teng. The meeting was held to advance work on Pakistan’s National Digital Asset Framework, a regulatory setup to govern Pakistan’s digital assets.

Pakistan has been moving to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight, and encouraging innovation in blockchain-based financial services.

“Participants reviewed opportunities to modernize Pakistan’s digital payments landscape, noting that blockchain-based systems could significantly reduce costs from the country’s $38 billion annual remittance flows,” the finance ministry said in a statement. 

“Discussions also emphasized building local talent pipelines to meet rising global demand for blockchain and Web3 skills, creating high-value employment prospects for Pakistani youth.”

Blockchain is a type of digital database that is shared, transparent and tamper-resistant. Instead of being stored on one computer, the data is kept on a distributed network of computers, making it very hard to alter or hack.

Web3 refers to the next generation of the Internet built using blockchain, focusing on giving users more control over their data, identity and digital assets rather than big tech companies controlling it.

Participants of the meeting also discussed sovereign debt tokenization, which is the process of converting a country’s debt such as government bonds, into digital tokens on a blockchain, the ministry said. 

Aurangzeb called for close coordination between the government, domestic banks and global exchanges to modernize Pakistan’s payment landscape.

Participants of the meeting also discussed considering a “time-bound amnesty” to encourage users to move assets onto regulated platforms, stressing the need for stronger verifications and a risk-mitigation system.

Pakistan has attempted in recent months to tap into the country’s growing crypto market, crack down on money laundering and terror financing, and promote responsible innovation — a move analysts say could bring an estimated $25 billion in virtual assets into the tax net.

In September, Islamabad invited international crypto exchanges and other VASPs to apply for licenses to operate in the country, a step aimed at formalizing and regulating its fast-growing digital market.