ISLAMABAD: China-Pakistan Economic Corridor (CPEC) is not a threat to British interests, British High Commissioner to Pakistan Christian Turner said in an interview with a select group of journalists. “I am always very clear about CPEC. I don’t regard it as a threat to British interests. If CPEC investments are done in the right way, it will benefit Pakistan as the country needs some restructuring investment. I think important infrastructure is good for business environment as long as investment is done in a way that benefits Pakistan," he stated.
There must be good labour and environmental standards and there should be transfer of knowledge and skills and projects should not add to debt, he contended.
The High Commissioner maintained that deals are beneficial as they benefit Pakistan, China and even those partners like the UK who are interested to take part in some projects in Special Economic Zones (SEZ), adding that he was sure that UK’s companies will participate.
In reply to a question regarding his recent meeting with Pakistan Army Chief, Qamar Javed Bajwa, he said some conversations did touch on economic issues as they pertain to Afghanistan including opening of trade links across the border.
About the possibility of opening up the border with India, he said it is difficult to respond in a regional context but cited a World Bank study which suggests that trade across the border with India could unleash 30 per cent growth in Pakistan's GDP adding that a basic observation is that long-term prosperity and exclusive growth for Pakistan needs partnerships through regional connectivity.
The UK government supported Pakistan's approach towards regional connectivity and Afghan peace negotiation process that is ultimately to deliver jobs for 220 million Pakistanis, he said adding that Pakistan may create 3 million jobs in the region in a year.
“We need more exports in the region to create jobs. This only comes with peace and new opportunity that comes through regional connectivity," he said adding, “we are certainly looking towards the West - to Afghanistan and central Asian countries.”
He said: “We should absolutely support regional economic connectivity that would drive job creation. Regional economic connectivity links back into peace and security".
He also talked about issues of child labour, human rights, freedom of speech in Pakistan. "Look into the broad context. These issues are important to my government, we have talk of freedom of religious belief, we believe in freedom of media, these are issues which my Prime Minister, Foreign Secretary regularly talk about and of course I have been instructed to raise them in an appropriate way with Pakistan government and work with Pakistani leaders of the government who are working very hard in support of these issues," the High Commissioner said.
"As these relate to trade relationship, of course, GSP Plus mechanism is one to talk about. But companies themselves will be self-judging. So if you are looking to have a partnership with a British firm in Pakistan that was susceptible to child labour, then that would be incredibly damaging. As Pakistan looks to drive more exports, irrespective of what my government says on these issues, the companies should be looking to give assurances that these issues are according to international standards," he emphasized.
The High Commissioner said that he has confirmed that when Britain will leave the EU, which it plans to after December 31, GSP plus with EU will be simply rolled over and GSP will continue after the UK leaves Brexit as the scheme was approved when it was an EU member.
Responding to another question, he said “fundamentally, if you look at what Brexit will do, it will empower Britain to do some bilateral trade deals. We are confident that we can build on current level of 3 billion pound exports with Pakistan to take it to the next level. Overall business here, it is already safe, we have natural ties due to people to people contact. Broadly speaking, it would not have any negative impact on bilateral trade between Pakistan and UK. I think it creates more opportunity for relations between the two countries."
Talking about relationships between Pakistan and the UK, he said that these are built on people-to-people contacts. The UK and Pakistan had a long partnership mainly due to people-to-people contacts. So, Pakistan and the UK are a big market. “Therefore, air links matter much to us,” he added.
He stated: With the Virgin Atlantic arrival, which started operations in a difficult time during the pandemic, now there are 20 direct flights every week between the UK and Pakistan whereas 18 months ago there was no British airline operating in Pakistan. "So, there is a real confidence in Pakistan and British air links have created opportunities for trade, jobs to build Pakistan’s economy. Textile industry is really booming in the aftermath of the pandemic and Virgin Atlantic would tap trade cargo potential. So, all this is about the partnership."
He further said that he had the task to change perception of Pakistan. "You have seen a lot of what I do is to change perception. I am trying to tell the people what is happening in Pakistan is something different," he added.
"I talked about changing travel advisory after I arrived in Pakistan. I am also talking about tourism potential. I would also love to talk about cricket as there is return of England cricket team to Pakistan. This is all about changing perception... With this, we have a big opportunity to work together," the High Commissioner added.
He said that there is a shift in British relationship with Pakistan from the previous focus on security. "Now I and my team help Pakistan build economic growth, build exports. For example, Britain extended support to Pakistan to export protective kits to the UK and import UK-made Covid tests kits," he said, adding that the UK’s firms provided expertise to help Pakistani schools deliver online lessons. "We also provided support to NDMA to help Pakistan tackle locusts," he added.
He said that the UK government had 1.5 billion pounds export credit facility that was a huge opportunity for Pakistani and British companies to work together to expand trade potential in the aftermath of Covid-19.
“The trade in 2020 was just 3 billion pounds in service and goods exports plus imports and we have potential to double it given enhanced partnership, change of perception and Brexit - these relations are going to deepen,” he added.
About regulatory environment in Pakistan for foreign investors, he said that businessmen could better respond to this query but added that investors need “good” business environment. "I particularly point to Pakistan government’s efforts to improve the ease of doing business ranking that is just one way of measuring environment. We support that effort," he said, adding that "there was a big improvement in ranking last year. The improvement continues as the investors see their investment is secure and have long-term certainty of returns."
Answering another question about litigation between foreign investors and Pakistani government in international court, he said that most of the investors who invest want a level playing field. They want to know if there is disagreement which almost always happens, they will get a fair hearing and where there are disputes, results should be fair and transparent.
He said UK’s firms have a natural advantage because of similar system and similar principle, "so we must explore the possibility of working together," he added.
"There are some more sectors, other than textiles, where we can work together. UK is interested to work in agriculture sector that has a strong base in Pakistan. We can help bring efficiency with some technology for better crops," he said, adding that the UK could assist in value-addition; for example, in preserving fruits and then exporting at higher values. Pharma is another area where the UK has expertise that can help farmers add value.
He said that Pakistan had set an ambitious target of increasing share of renewable energy by 2020 and maintained that investment in wind and solar energy is cheaper than coal.
He said that Pakistan had a good story to tell the world about its economic environment. “There is a very difficult environment globally due to pandemic. The leadership of the economy in Pakistan has a difficult task navigating Pakistan through these stormy waters,” he said, appreciating the government for undertaking fundamental reforms needed in the power sector and tax reforms.
Christian Turner, however, refused to comment on the issue of the return of PML-N supremo Mian Nawaz Sharif from the UK and current political situation in Pakistan.
Copyright Business Recorder, 2020
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