WPR: What are the main areas of cooperation between Japan and Pakistan?
Ahmad Rashid Malik: Economic and security issues have been the main areas of cooperation between Pakistan and Japan over the years, including promoting trade and attracting investment. Pakistan has long sought Japanese loans, technical cooperation and the transfer of commercial technology.
Japan signed a trade agreement with Pakistan in May 1948, Tokyo’s first such agreement after World War II. Japan needed cotton and jute from Pakistan to revive its textile industry, which was the only industry allowed during the Allied occupation.
Pakistan waived its war reparations against Japan as a goodwill gesture and played a pivotal role in Japan’s postwar reopening. Pakistani Prime Minister Hussain Shaheed Suhrawardy paid an official visit to Japan in May 1957, the first-ever by a Pakistani prime minister but also the first by an Asian leader after World War II. Within a month, Japanese Prime Minister Nobusuke Kishi kicked off an Asia trip with a visit to Pakistan, the first-ever by a Japanese leader after World War II.
WPR: How important is Japanese investment to Pakistan’s economy and infrastructure?
Malik: Japanese investment is critical for Pakistan. However, Japan is concerned by a number of obstacles to investment in Pakistan, such as bureaucratic red tape, inconsistent economic policies, corruption and insecurity. That said, joint infrastructure ventures have been producing tangible results, including the Indus Highway and Kohat Tunnel.
Japanese foreign direct investment (FDI) in Pakistan has declined recently, from $31 million in 2013 to $18 million in 2014. In spite of these concerns, Japan’s External Trade Organization (JETRO) considers Pakistan the most lucrative market for Japanese companies after Taiwan. Infrastructure, especially under the China-Pakistan Economic Corridor (CPEC), along with other energy projects attract the most Japanese FDI.
WPR: How have regional issues—including Kashmir and relations with China—affected Pakistan-Japan ties?
Malik: Japan has a neutral stand on the Kashmir dispute, while China has been sympathetic toward Pakistan on the issue. Japan is, however, willing to mediate the issue if both Pakistan and India agree.
Both Japan and China have also developed a common understanding with Pakistan on counterterrorism. In this context, in 2005, Japan removed sanctions on Pakistan put in place after Islamabad’s first nuclear test in 1998, and new loans were issued. Pakistan was also an important player in Japan’s Operation Enduring Freedom-Maritime Interdiction Operation (OEF-MIO) in the Indian Ocean from 2001-2010.
Reference:
Japan-Pakistan Ties Hold Steady as China Rises
Ahmad Rashid Malik: Economic and security issues have been the main areas of cooperation between Pakistan and Japan over the years, including promoting trade and attracting investment. Pakistan has long sought Japanese loans, technical cooperation and the transfer of commercial technology.
Japan signed a trade agreement with Pakistan in May 1948, Tokyo’s first such agreement after World War II. Japan needed cotton and jute from Pakistan to revive its textile industry, which was the only industry allowed during the Allied occupation.
Pakistan waived its war reparations against Japan as a goodwill gesture and played a pivotal role in Japan’s postwar reopening. Pakistani Prime Minister Hussain Shaheed Suhrawardy paid an official visit to Japan in May 1957, the first-ever by a Pakistani prime minister but also the first by an Asian leader after World War II. Within a month, Japanese Prime Minister Nobusuke Kishi kicked off an Asia trip with a visit to Pakistan, the first-ever by a Japanese leader after World War II.
WPR: How important is Japanese investment to Pakistan’s economy and infrastructure?
Malik: Japanese investment is critical for Pakistan. However, Japan is concerned by a number of obstacles to investment in Pakistan, such as bureaucratic red tape, inconsistent economic policies, corruption and insecurity. That said, joint infrastructure ventures have been producing tangible results, including the Indus Highway and Kohat Tunnel.
Japanese foreign direct investment (FDI) in Pakistan has declined recently, from $31 million in 2013 to $18 million in 2014. In spite of these concerns, Japan’s External Trade Organization (JETRO) considers Pakistan the most lucrative market for Japanese companies after Taiwan. Infrastructure, especially under the China-Pakistan Economic Corridor (CPEC), along with other energy projects attract the most Japanese FDI.
WPR: How have regional issues—including Kashmir and relations with China—affected Pakistan-Japan ties?
Malik: Japan has a neutral stand on the Kashmir dispute, while China has been sympathetic toward Pakistan on the issue. Japan is, however, willing to mediate the issue if both Pakistan and India agree.
Both Japan and China have also developed a common understanding with Pakistan on counterterrorism. In this context, in 2005, Japan removed sanctions on Pakistan put in place after Islamabad’s first nuclear test in 1998, and new loans were issued. Pakistan was also an important player in Japan’s Operation Enduring Freedom-Maritime Interdiction Operation (OEF-MIO) in the Indian Ocean from 2001-2010.
Reference:
Japan-Pakistan Ties Hold Steady as China Rises
