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Interview: ‘Japanese are very interested to invest in Pakistan’ –Japanese Ambassador Hiroshi Inomata
But the security situation, and of course energy, are a bit of a problem
QUESTION: Excellency, Pakistan and Japan have enjoyed excellent relations since 1952, when diplomatic relations were established between the two countries. Keeping in view the history of these relations, would you like to shed some light on the present bilateral equation between Pakistan and Japan?
Ambassador Hiroshi Inomata: As you said, Japan and Pakistan have enjoyed very close and cordial relations since the establishment of diplomatic relations in 1952. Both the countries have happily maintained cordial relations in various fields of foreign policy, culture and people’s exchange. The friendly relationship between Japan and Pakistan in modern history began with cooperation in mainly economic and business arena. Pakistan has been one of the important economic partners for Japan, symbolised by the textile industries, for well over half a century. In the 1950s and 60s, Pakistan exported raw cotton to Japan. Japan processed the cotton into yarn and cloth and exported them to the world including Pakistan. With cotton spinning and weaving machineries imported from Japan, Pakistan has developed textile industries to the extent to become a strong exporter of textile items to the world. I hope that the bilateral relations between our two countries will further expand and deepen, since I believe there is still room for more.
Q: Keeping in view ever changing trends in international politics, alliances and counter-alliances, how much significance does Japan give to Pakistan in its foreign policy?
HI: Friendly diplomatic relations between Japan and Pakistan are in the interest of both countries. Considering its geographical location, no one can underestimate Pakistan’s role in establishing peace and stability in this region. Japan has been promoting a friendly and close relationship with India for various reasons. But at the same time, Japan considers Pakistan an important partner in South Asia. Especially in the Cold War era, at the time the Soviet Union invaded Afghanistan, we did support the front line state, Pakistan, and after 9/11, Pakistan has played a very important role in the war against terrorism. We have a similar stance on most important international issues, although on some issues we have taken different positions. Pakistan is one of few countries with which Japan has enjoyed holding politico-military dialogues.
Q: What is the status of economic relations between Pakistan and Japan?
HI: In the economic field, we have concluded the following agreements; Agreement for Promotion and Protection of Investment (29 May 2002), Treaty of Friendship and Commerce between Japan and Pakistan (29 May 2004), Avoidance of Double Taxation Convention (9 Nov 2008). Under those legal frameworks and WTO related agreements, Japan and Pakistan have developed economic relations. Currently the trade volume between the two countries has been around $2 billion, but the balance is in favour of Japan for last few decades. Considering the size of both economies, I think this trade volume has much room to expand, and it should increase. Japan is trying to have broader economic relations with Pakistan.
Q: The government and people of Pakistan attach great importance to their relations with Japan due to its valuable assistance in our difficult times. How much Japanese investment do you expect in Pakistan in the near future and which are the main areas of Pakistan where Japan can invest?
HI: As a friend of Pakistan, Japan is willing to help in a way which could contribute to the social and economic development of Pakistan; as is well known leading Japanese car manufacturers like Honda, Suzuki and Toyota have invested in Pakistan. Since we see much potential in Pakistan, the Japanese business community is considering future investment in various sectors including energy and consumer goods. But the security situation in Pakistan is the biggest hindrance in the way of investment. Japanese companies are very interested to invest in Pakistan but they are reluctant to invest here mainly because of their security concerns and energy shortage. I am sure that foreign investors would turn towards Pakistan when there is peace and stability in the country.
By the way, the accumulative figure of net FDI from Japan in last two decades amounts to around $820 million.
Q: Pakistan faces a grave threat from terrorism. We believe Japan is Pakistan’s strong partner in promoting peace and stability in the Asian region. How do you view Pakistan’s sacrifices in war against terrorism?
HI: There is no doubt that Pakistan has suffered a lot in the war against terrorism after the 9/11. Japan highly appreciates the important role played by Pakistan in the fight against terrorism and extremism. We also acknowledge the immense sacrifices, both in terms of human and material losses, suffered by the people of Pakistan in this regard. Japan did support CTF 150 by sending two refuelling vessels to the Indian Ocean. Pakistan naval vessels were one of biggest beneficiary of our operation. Japan is determined to continue to work together with Pakistan to consolidate peace and stability in the region.
Q: The energy crisis is one of the major issues in Pakistan these days. How can Japan help Pakistan to end this crisis?
HI: Japan has extended necessary cooperation to overcome the energy crisis by providing active support to the energy sector of Pakistan over the last three decades.
Japan provided a five billion Yen loan to support the energy sector reforms in Pakistan last year and in the past Japan financed thermal power stations in Bin Qasim and Jamshoro, and the Ghazi-Barotha Hydropower Project. Japan has also supported the National Transmission and Dispatch Company to expand its grid systems by building 12 new grid stations, networking 1,487km-long transmission lines and upgrading training facilities. In power distribution, Japan has contributed a lion’s share in electrification of over 6,000 villages. We have also cooperated to make several studies in the energy field. Japan is ahead in technology to reduce the greenhouse gas emission out of coal-fired power plants, so we can help Pakistan in this area as well.
Japan intends to continue providing assistance in the energy sector at appropriate junctures, while closely monitoring the progress of the reforms by the government of Pakistan and coordinating with other development partners.
Q: We are proud of Japan’s help in setting up health units in Pakistan, like Pakistan Institute of Medical Sciences (PIMS) in the federal capital. Pakistan needs more Japanese assistance in health and education. What sort of future help do you envision to further build up Pakistan’s social sector? Also what is the level of cooperation between Japan and Pakistan in the education sector?
HI: Keeping in view the importance of health and education, Japan is providing full cooperation to Pakistan in these two sectors.
In the health sector, the government of Japan has been a long-standing partner of PIMS since 1982 through construction of its buildings, provision of equipment and technical assistance. Recently, in May last year, in order to improve the capacity and quality of medical services provided by PIMS, the government of Japan provided the latest and more efficient medical equipment worth around 106 million Japanese Yen, an equivalent of Rs103 million to PIMS. Similarly the government of Japan provided grant assistance worth 1.423 billion Japanese Yen (equivalent to around Rs1.38 billion) for “The Project for Improvement of Child Health Institute in Karachi”. This grant assistance will enable the government of Sindh to establish a 250-bed Child Health Institute and procure approximately 500 items of the medical equipment.
Japan is also a long-standing partner for Pakistan in its efforts to eradicate polio. Japan has been providing funding for the last 19 years for procurement of vaccine, establishment of cold chains and promotion of social awareness. Japan’s financial assistance has amounted to over 16 billion yen in total.
In the education sector, Japan has helped to build around 530 schools so far in various parts of Pakistan since the commencement of Japan’s official development assistance (ODA) program in Pakistan in 1954. Just to mention the last year’s project, the government of Japan has extended assistance to build around 30 elementary-middle schools for girls in the rural areas of southern Sindh province. A grant up to 808 million Japanese Yen (approximately Rs829 million or $7.85 million), has been provided to implement “the Project for Upgrading Primary Girls Schools into Elementary Schools”. Also, we have established many schools at grass-roots level in various parts of Pakistan and are also active in promoting non-formal education, technical education and vocational training. Expanding education opportunities has clearly been one of Japan’s development priority areas in Pakistan. We also send Pakistani students to Japan on scholarships every year for their higher studies.
Q: What is the existing position of the exchange programmes of parliamentarians between the two countries?
HI: Both Japan and Pakistan have Japan-Pakistan Parliamentarians Friendship Groups respectively, working to enhance their regular interactions. I am determined to make utmost efforts to further strengthen bilateral relations between Japan and Pakistan, focusing on the promotion of parliamentarians’ exchanges between our countries. This year in February the members of the Standing Committee on Defence of the National Assembly of Pakistan and of the Pakistan-Japan Parliamentary Friendship Group in the National Assembly visited Japan for a week or so. And upon their return, all the participants really appreciated their visit.
Q: How would you describe the cultural relations between the two countries?
HI: Culture has been an integral part of our strong friendship all the time. Knowing that the cultural bond stems from the Gandhara civilisation, I would like to actively support events and programs which encourage the people of both countries to understand each other. We hold Ikebana flower arrangement shows, Bonseki Shows, Haiku Mushaira, Japanese Woodblock Printing Workshops, Japanese calendars exhibitions, film shows, art and speech competition and many other cultural activities in various cities of Pakistan. We are focusing on people to people interactions through youth exchanges. During the last two years, we have sent 160 Pakistani high school and university students to Japan (77 students in 2013, 83 students in 2014). On their return, they gave us very good feedback. They liked Japan, its culture and Japanese people.
Unfortunately after 9/11, number of Japanese students coming to Pakistan has decreased due to security reasons.
Q: You have travelled to many parts of Pakistan, what is your impression of the country and its people?
HI: I came to Pakistan as an ambassador in September 2013 but my relation with Pakistan was established as far back as the early 80’s and I had visited Pakistan five times before assuming the post as ambassador. Pakistan is a beautiful country having variety of seasons and eye-catching landscapes. I travelled to Karachi, Lahore, Peshawar, Faisalabad, Multan, Sialkot, Taxila, Rawalpindi, Rohtas Fort, Okara, Sheikhupura, Bahawalpur and Harappa. I hope to travel to northern part of Pakistan like Gilgit-Baltistan, Hunza and on the other hand I also hope to visit the very historical place Mohenjo-Daro. Pakistani culture is quite rich and Pakistani people are very loving and hospitable. They are especially very courteous to foreigners and always greet them with deep humility and respect.
Q: Finally, your message for the people of Pakistan?
HI: Although Pakistan is faced with many challenging issues right now, Pakistan is blessed with abundance of natural resources and a huge sum of human capital. I strongly feel that Pakistan is a country with a lot of possibilities in wide-ranging fields including economy, business, tourism, and culture. Pakistan is also a major and crucial player for peace and prosperity of the international community.
With regards to economic development, I believe that Pakistan’s huge potential and advantages, such as large and growing population and high intellectual standard, can lead the country to a strategically and economically strong position. Your geographical location gives you a distinct advantage in regional development of the area comprising Afghanistan and Central Asia. However, much has to be done to materialise this vast potential. To name but one, Pakistan still needs to work hard to improve the business climate. Concerns for security, stable supply of electricity and water, are widely shared among foreign investors.
Improvement of economic management and governance will greatly contribute to uplifting business confidence towards Pakistan. Once these concerns are duly addressed, vast opportunities will be there for Pakistan and the rest of the world. I hope that I may, together with the government of Pakistan, serve towards that end, which will surely lead to enhanced interaction between our two countries.
But the security situation, and of course energy, are a bit of a problem
QUESTION: Excellency, Pakistan and Japan have enjoyed excellent relations since 1952, when diplomatic relations were established between the two countries. Keeping in view the history of these relations, would you like to shed some light on the present bilateral equation between Pakistan and Japan?
Ambassador Hiroshi Inomata: As you said, Japan and Pakistan have enjoyed very close and cordial relations since the establishment of diplomatic relations in 1952. Both the countries have happily maintained cordial relations in various fields of foreign policy, culture and people’s exchange. The friendly relationship between Japan and Pakistan in modern history began with cooperation in mainly economic and business arena. Pakistan has been one of the important economic partners for Japan, symbolised by the textile industries, for well over half a century. In the 1950s and 60s, Pakistan exported raw cotton to Japan. Japan processed the cotton into yarn and cloth and exported them to the world including Pakistan. With cotton spinning and weaving machineries imported from Japan, Pakistan has developed textile industries to the extent to become a strong exporter of textile items to the world. I hope that the bilateral relations between our two countries will further expand and deepen, since I believe there is still room for more.
Q: Keeping in view ever changing trends in international politics, alliances and counter-alliances, how much significance does Japan give to Pakistan in its foreign policy?
HI: Friendly diplomatic relations between Japan and Pakistan are in the interest of both countries. Considering its geographical location, no one can underestimate Pakistan’s role in establishing peace and stability in this region. Japan has been promoting a friendly and close relationship with India for various reasons. But at the same time, Japan considers Pakistan an important partner in South Asia. Especially in the Cold War era, at the time the Soviet Union invaded Afghanistan, we did support the front line state, Pakistan, and after 9/11, Pakistan has played a very important role in the war against terrorism. We have a similar stance on most important international issues, although on some issues we have taken different positions. Pakistan is one of few countries with which Japan has enjoyed holding politico-military dialogues.
Q: What is the status of economic relations between Pakistan and Japan?
HI: In the economic field, we have concluded the following agreements; Agreement for Promotion and Protection of Investment (29 May 2002), Treaty of Friendship and Commerce between Japan and Pakistan (29 May 2004), Avoidance of Double Taxation Convention (9 Nov 2008). Under those legal frameworks and WTO related agreements, Japan and Pakistan have developed economic relations. Currently the trade volume between the two countries has been around $2 billion, but the balance is in favour of Japan for last few decades. Considering the size of both economies, I think this trade volume has much room to expand, and it should increase. Japan is trying to have broader economic relations with Pakistan.
Q: The government and people of Pakistan attach great importance to their relations with Japan due to its valuable assistance in our difficult times. How much Japanese investment do you expect in Pakistan in the near future and which are the main areas of Pakistan where Japan can invest?
HI: As a friend of Pakistan, Japan is willing to help in a way which could contribute to the social and economic development of Pakistan; as is well known leading Japanese car manufacturers like Honda, Suzuki and Toyota have invested in Pakistan. Since we see much potential in Pakistan, the Japanese business community is considering future investment in various sectors including energy and consumer goods. But the security situation in Pakistan is the biggest hindrance in the way of investment. Japanese companies are very interested to invest in Pakistan but they are reluctant to invest here mainly because of their security concerns and energy shortage. I am sure that foreign investors would turn towards Pakistan when there is peace and stability in the country.
By the way, the accumulative figure of net FDI from Japan in last two decades amounts to around $820 million.
Q: Pakistan faces a grave threat from terrorism. We believe Japan is Pakistan’s strong partner in promoting peace and stability in the Asian region. How do you view Pakistan’s sacrifices in war against terrorism?
HI: There is no doubt that Pakistan has suffered a lot in the war against terrorism after the 9/11. Japan highly appreciates the important role played by Pakistan in the fight against terrorism and extremism. We also acknowledge the immense sacrifices, both in terms of human and material losses, suffered by the people of Pakistan in this regard. Japan did support CTF 150 by sending two refuelling vessels to the Indian Ocean. Pakistan naval vessels were one of biggest beneficiary of our operation. Japan is determined to continue to work together with Pakistan to consolidate peace and stability in the region.
Q: The energy crisis is one of the major issues in Pakistan these days. How can Japan help Pakistan to end this crisis?
HI: Japan has extended necessary cooperation to overcome the energy crisis by providing active support to the energy sector of Pakistan over the last three decades.
Japan provided a five billion Yen loan to support the energy sector reforms in Pakistan last year and in the past Japan financed thermal power stations in Bin Qasim and Jamshoro, and the Ghazi-Barotha Hydropower Project. Japan has also supported the National Transmission and Dispatch Company to expand its grid systems by building 12 new grid stations, networking 1,487km-long transmission lines and upgrading training facilities. In power distribution, Japan has contributed a lion’s share in electrification of over 6,000 villages. We have also cooperated to make several studies in the energy field. Japan is ahead in technology to reduce the greenhouse gas emission out of coal-fired power plants, so we can help Pakistan in this area as well.
Japan intends to continue providing assistance in the energy sector at appropriate junctures, while closely monitoring the progress of the reforms by the government of Pakistan and coordinating with other development partners.
Q: We are proud of Japan’s help in setting up health units in Pakistan, like Pakistan Institute of Medical Sciences (PIMS) in the federal capital. Pakistan needs more Japanese assistance in health and education. What sort of future help do you envision to further build up Pakistan’s social sector? Also what is the level of cooperation between Japan and Pakistan in the education sector?
HI: Keeping in view the importance of health and education, Japan is providing full cooperation to Pakistan in these two sectors.
In the health sector, the government of Japan has been a long-standing partner of PIMS since 1982 through construction of its buildings, provision of equipment and technical assistance. Recently, in May last year, in order to improve the capacity and quality of medical services provided by PIMS, the government of Japan provided the latest and more efficient medical equipment worth around 106 million Japanese Yen, an equivalent of Rs103 million to PIMS. Similarly the government of Japan provided grant assistance worth 1.423 billion Japanese Yen (equivalent to around Rs1.38 billion) for “The Project for Improvement of Child Health Institute in Karachi”. This grant assistance will enable the government of Sindh to establish a 250-bed Child Health Institute and procure approximately 500 items of the medical equipment.
Japan is also a long-standing partner for Pakistan in its efforts to eradicate polio. Japan has been providing funding for the last 19 years for procurement of vaccine, establishment of cold chains and promotion of social awareness. Japan’s financial assistance has amounted to over 16 billion yen in total.
In the education sector, Japan has helped to build around 530 schools so far in various parts of Pakistan since the commencement of Japan’s official development assistance (ODA) program in Pakistan in 1954. Just to mention the last year’s project, the government of Japan has extended assistance to build around 30 elementary-middle schools for girls in the rural areas of southern Sindh province. A grant up to 808 million Japanese Yen (approximately Rs829 million or $7.85 million), has been provided to implement “the Project for Upgrading Primary Girls Schools into Elementary Schools”. Also, we have established many schools at grass-roots level in various parts of Pakistan and are also active in promoting non-formal education, technical education and vocational training. Expanding education opportunities has clearly been one of Japan’s development priority areas in Pakistan. We also send Pakistani students to Japan on scholarships every year for their higher studies.
Q: What is the existing position of the exchange programmes of parliamentarians between the two countries?
HI: Both Japan and Pakistan have Japan-Pakistan Parliamentarians Friendship Groups respectively, working to enhance their regular interactions. I am determined to make utmost efforts to further strengthen bilateral relations between Japan and Pakistan, focusing on the promotion of parliamentarians’ exchanges between our countries. This year in February the members of the Standing Committee on Defence of the National Assembly of Pakistan and of the Pakistan-Japan Parliamentary Friendship Group in the National Assembly visited Japan for a week or so. And upon their return, all the participants really appreciated their visit.
Q: How would you describe the cultural relations between the two countries?
HI: Culture has been an integral part of our strong friendship all the time. Knowing that the cultural bond stems from the Gandhara civilisation, I would like to actively support events and programs which encourage the people of both countries to understand each other. We hold Ikebana flower arrangement shows, Bonseki Shows, Haiku Mushaira, Japanese Woodblock Printing Workshops, Japanese calendars exhibitions, film shows, art and speech competition and many other cultural activities in various cities of Pakistan. We are focusing on people to people interactions through youth exchanges. During the last two years, we have sent 160 Pakistani high school and university students to Japan (77 students in 2013, 83 students in 2014). On their return, they gave us very good feedback. They liked Japan, its culture and Japanese people.
Unfortunately after 9/11, number of Japanese students coming to Pakistan has decreased due to security reasons.
Q: You have travelled to many parts of Pakistan, what is your impression of the country and its people?
HI: I came to Pakistan as an ambassador in September 2013 but my relation with Pakistan was established as far back as the early 80’s and I had visited Pakistan five times before assuming the post as ambassador. Pakistan is a beautiful country having variety of seasons and eye-catching landscapes. I travelled to Karachi, Lahore, Peshawar, Faisalabad, Multan, Sialkot, Taxila, Rawalpindi, Rohtas Fort, Okara, Sheikhupura, Bahawalpur and Harappa. I hope to travel to northern part of Pakistan like Gilgit-Baltistan, Hunza and on the other hand I also hope to visit the very historical place Mohenjo-Daro. Pakistani culture is quite rich and Pakistani people are very loving and hospitable. They are especially very courteous to foreigners and always greet them with deep humility and respect.
Q: Finally, your message for the people of Pakistan?
HI: Although Pakistan is faced with many challenging issues right now, Pakistan is blessed with abundance of natural resources and a huge sum of human capital. I strongly feel that Pakistan is a country with a lot of possibilities in wide-ranging fields including economy, business, tourism, and culture. Pakistan is also a major and crucial player for peace and prosperity of the international community.
With regards to economic development, I believe that Pakistan’s huge potential and advantages, such as large and growing population and high intellectual standard, can lead the country to a strategically and economically strong position. Your geographical location gives you a distinct advantage in regional development of the area comprising Afghanistan and Central Asia. However, much has to be done to materialise this vast potential. To name but one, Pakistan still needs to work hard to improve the business climate. Concerns for security, stable supply of electricity and water, are widely shared among foreign investors.
Improvement of economic management and governance will greatly contribute to uplifting business confidence towards Pakistan. Once these concerns are duly addressed, vast opportunities will be there for Pakistan and the rest of the world. I hope that I may, together with the government of Pakistan, serve towards that end, which will surely lead to enhanced interaction between our two countries.
