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Perception of Pakistan being a dangerous place deterring Japanese investors: envoy
ISLAMABAD:
Many Japanese investors are afraid of coming to Pakistan; they think it is a dangerous place.
This perception about Pakistan, coupled with the countrys inconsistent economic policies, seriously hampers Japanese investment in Pakistan, despite the countrys huge potential.
These concerns were expressed by Japanese Ambassador Hiroshi Oe in an interview with The Express Tribune, as the two countries mark 60 years of diplomatic relations this year.
Personally, I would not say that Pakistan is as dangerous as many people think, but unfortunately such is the perception, said the ambassador, adding that it would take serious efforts from the Pakistani government to change this image. He was of the opinion that once the security and energy supply situation improves and stable policies are put in place by the government, a large number of Japanese companies will flock to Pakistan to benefit from its young labour force and natural resources.
Japanese customers are quality-conscious, which would require all companies to keep their experts present at all times at the plants here, but it would not be possible under an instable security situation, said the ambassador, while giving the example of a textile company in Bangladesh, which has more than 500 Japanese working there. Enhanced exchange of people from the business communities of the two countries would help clear perceptions about Pakistan, Oe said.
He recently attended investment seminars on Pakistan in Bangkok and Singapore which saw participation from over 100 Japanese companies, many of which showed keen interest in Pakistan. But it takes two to tango. We need active support from our Pakistani friends and counterparts, said the ambassador, or else these companies would lose interest.
Automobiles
Many Japanese companies are manufacturing automobiles in Pakistan, but they are also facing problems in increasing production, mainly due to government policies.
High tariffs on imported parts not available in Pakistan and frequent changes in government policies on the import of used vehicles are affecting the local industry, said Oe. He attributed the higher prices of locally-manufactured vehicles to currency exchange rate fluctuations.
The ambassador said some Japanese companies are interested in manufacturing auto parts in Pakistan, as Suzuki was doing in India, however they are waiting for Pak-India trade liberalisation process to mature before making the leap. If Pakistan allows the import of parts from India, then some auto parts companies might not come to Pakistan, he added.
The ambassador said he would like to see local production of automobiles increase to a level where they can be exported to Afghanistan and Central Asia.
Polio eradication
Pakistan is one of the only three countries in the world where polio remains endemic. Japan has been the largest contributor towards polio eradication in Pakistan, giving more than US$90 million in aid over the past 16 years, covering almost a quarter of the entire cost of the polio vaccination campaign since 1996.
However, the ambassador said it would be difficult to persuade the Japanese taxpayer to continue funding the campaign if polio cases keep appearing in Pakistan. The recent problems faced by polio vaccination campaign in tribal and some other areas of Pakistan, he said, have compounded the problem.
People need to be educated, and the capacity of health workers has to be enhanced, said Oe, adding that about half of the money was now spared for better salaries for health workers involved in the vaccination campaigns, particularly those in the tribal areas.
We are very happy with the progress made by the Pakistani government, but the additional educational campaign is rapidly eating up funds, said the ambassador.
He said Japan also agreed to provide US$65 million in an innovative collaboration with the Bill and Melinda Gates Foundation last year. It was a soft loan which would be paid off by the foundation if the project is successfully implemented.
Regional stability
Highlighting the success of the 2012 Tokyo Conference on Afghanistan, where the international community despite the sluggish world economy, pledged over $16 billion through 2015 to fully cover Afghanistans fiscal gap, Oe said Japan took the initiative to establish an accountability framework to ensure corruption-free utilisation of the funds.
He said a stable Afghanistan was in the best interest of Pakistan and the entire region. We are happy to see improvement in relations between Afghanistan, Pakistan and the United States, said the ambassador.
He suggested that Pakistan should demonstrate its commitment through action towards international communitys peace efforts in Afghanistan. He was happy to read in newspapers that Pakistan was helping arrange meetings between reconcilable Taliban groups and the Afghan government.
ISLAMABAD:
Many Japanese investors are afraid of coming to Pakistan; they think it is a dangerous place.
This perception about Pakistan, coupled with the countrys inconsistent economic policies, seriously hampers Japanese investment in Pakistan, despite the countrys huge potential.
These concerns were expressed by Japanese Ambassador Hiroshi Oe in an interview with The Express Tribune, as the two countries mark 60 years of diplomatic relations this year.
Personally, I would not say that Pakistan is as dangerous as many people think, but unfortunately such is the perception, said the ambassador, adding that it would take serious efforts from the Pakistani government to change this image. He was of the opinion that once the security and energy supply situation improves and stable policies are put in place by the government, a large number of Japanese companies will flock to Pakistan to benefit from its young labour force and natural resources.
Japanese customers are quality-conscious, which would require all companies to keep their experts present at all times at the plants here, but it would not be possible under an instable security situation, said the ambassador, while giving the example of a textile company in Bangladesh, which has more than 500 Japanese working there. Enhanced exchange of people from the business communities of the two countries would help clear perceptions about Pakistan, Oe said.
He recently attended investment seminars on Pakistan in Bangkok and Singapore which saw participation from over 100 Japanese companies, many of which showed keen interest in Pakistan. But it takes two to tango. We need active support from our Pakistani friends and counterparts, said the ambassador, or else these companies would lose interest.
Automobiles
Many Japanese companies are manufacturing automobiles in Pakistan, but they are also facing problems in increasing production, mainly due to government policies.
High tariffs on imported parts not available in Pakistan and frequent changes in government policies on the import of used vehicles are affecting the local industry, said Oe. He attributed the higher prices of locally-manufactured vehicles to currency exchange rate fluctuations.
The ambassador said some Japanese companies are interested in manufacturing auto parts in Pakistan, as Suzuki was doing in India, however they are waiting for Pak-India trade liberalisation process to mature before making the leap. If Pakistan allows the import of parts from India, then some auto parts companies might not come to Pakistan, he added.
The ambassador said he would like to see local production of automobiles increase to a level where they can be exported to Afghanistan and Central Asia.
Polio eradication
Pakistan is one of the only three countries in the world where polio remains endemic. Japan has been the largest contributor towards polio eradication in Pakistan, giving more than US$90 million in aid over the past 16 years, covering almost a quarter of the entire cost of the polio vaccination campaign since 1996.
However, the ambassador said it would be difficult to persuade the Japanese taxpayer to continue funding the campaign if polio cases keep appearing in Pakistan. The recent problems faced by polio vaccination campaign in tribal and some other areas of Pakistan, he said, have compounded the problem.
People need to be educated, and the capacity of health workers has to be enhanced, said Oe, adding that about half of the money was now spared for better salaries for health workers involved in the vaccination campaigns, particularly those in the tribal areas.
We are very happy with the progress made by the Pakistani government, but the additional educational campaign is rapidly eating up funds, said the ambassador.
He said Japan also agreed to provide US$65 million in an innovative collaboration with the Bill and Melinda Gates Foundation last year. It was a soft loan which would be paid off by the foundation if the project is successfully implemented.
Regional stability
Highlighting the success of the 2012 Tokyo Conference on Afghanistan, where the international community despite the sluggish world economy, pledged over $16 billion through 2015 to fully cover Afghanistans fiscal gap, Oe said Japan took the initiative to establish an accountability framework to ensure corruption-free utilisation of the funds.
He said a stable Afghanistan was in the best interest of Pakistan and the entire region. We are happy to see improvement in relations between Afghanistan, Pakistan and the United States, said the ambassador.
He suggested that Pakistan should demonstrate its commitment through action towards international communitys peace efforts in Afghanistan. He was happy to read in newspapers that Pakistan was helping arrange meetings between reconcilable Taliban groups and the Afghan government.
