Pakistan and Japan have partnered together through the years and ever since their diplomatic relations were established in April 1952, now celebrating 65 years. While Japan had just risen from the ashes of the WWII in 1945, Pakistan had just gained Independence in 1947 after a long struggle from British India. Today, Japan stands as a major trading partner as well as a donor to Pakistan. While Pakistan assisted Japan in providing raw cotton on deferred payment, Japan assisted Pakistan develop its textile industry with textile machinery making it a lead country supplying quality goods to the textile sector globally; the position it still noticeably maintains. Besides, Pakistan and Japan have convergent views on all major global issues and support each other on all international forums.
Japan has been a member of the Aid to Pakistan Consortium since 1961 and has been regularly assisting Pakistan with its development programs by providing financial support. Positioned as the 3rd largest economy of the world, Japan has a nominal GDP of close to five trillion Dollars, while that of Pakistan, 250 Billion and standing at the 26th position. The annual development assistance from Japan to Pakistan over the years has gradually increased and now averages at Dollars 600 Million which includes project loans for infra-structure development, outright grant assistance for the development of social sectors such as Health, Education, Mass Media, Security and technical assistance for the promotion of expertise and technology transfer. Japan is the 2nd top donor of bilateral assistance to Pakistan. Total assistance to Pakistan so far is well in excess of Dollars 12.00 Billion and is funded through Japan International Cooperation Agency (JICA). Japan has been in the forefront to assist Pakistan with its development needs; an example of which was the hosting of Friends of Democratic Pakistan Conference (FDOP) in April, 2009 inviting friendly countries to make pledges in order to support Pakistan after returning to democracy. Pledges of over Dollars 6 Billion were made by various participating countries, with the then President of Pakistan himself attending at the invitation of the Japanese Government.
Karachi, historically being a commercial hub, many Japanese entities were present even before Pakistan's independence with their first Trading Company being established in 1918 and the first Japanese Bank in 1925. Currently, there are over 80 Japanese Companies now operating in Pakistan providing employment to over twelve thousand and helping the government exchequer annually with over 60 Billion Rupees in tax revenues. In the industrial sector, Japan leads the automotive sector with almost all well-known Japanese brands with their presence; the first amongst them to start in 1980. Japanese automotive sector in Pakistan enjoys a market share of over 90%. To protect such investment and to further promote it, an agreement was signed between the two governments in 2002.
Pakistan-Japan Business Forum (PJBF) is a Bi-Lateral forum established in 2001 with a view to promote trade and investments between the two friendly countries. To achieve this objective, the formation of its Board of Directors comprises of 10 Directors each from Pakistan and from Japan elected for a period of 3 years. Currently, it is led by Sohail P. Ahmed of the House of Habib as its Chairman with Tetsuya Suematsu, the country General Manager of Marubeni Corporation as the Senior Vice Chairman representing the Japanese side. The Consul General of Japan in Karachi, Toshikazu Isomura, is the Patron with the Ambassador of Japan in Islamabad, Takashi Kurai, as the Patron-in-Chief. Amongst the various activities of the forum is holding of events and inviting the decision makers in the government connected to business matters which include the Ministers, Secretaries as well as CEO's of related organizations such as Trade Development Authority of Pakistan (TDAP), Board of Investment (BOI), Federal Board of Revenue (FBR) and the like. Members interact with them as it provides them with a platform to air their views and seek help on matters of interest to their businesses thereby directly bringing it to the knowledge of the concerned. Participation in exhibitions such as Expo Pakistan, arranging trainings both in Pakistan and in Japan on specialized subjects, managing and linking trade delegations to visit Japan and interact with their potential counterparts as well as liaising with Embassies in both countries to ensure the maximum utilization of their presence for the business community, are amongst the few initiatives that are undertaken by the Forum. The Board of Director of PJBF meet monthly to review progress, while the Annual General Meetings are chaired by the Japanese Ambassador. PJBF has also taken the lead to call upon all heads of Bi-Lateral Business Forums operating in Pakistan to jointly come up with a working paper highlighting issues common to all which can then be taken up with the government for corrective measures.
The counter part of PJBF in Japan is Japan-Pakistan Business Cooperation Committee (JPBCC) and which is currently headed by Teruo Asada, the Chairman of Marubeni Corporation, itself a conglomerate in Japan. Delegations between the two alternatively take place each year for what is called the "Joint Dialogue". Meetings are arranged for Government to Government (G to G) negotiations as well as Business to Business (B to B) interaction. The next JD is expected to take place in Japan in 2018. Pakistan's Ambassador to Japan, Asad Majeed Khan, is in regular touch with both JPBCC in Tokyo as well as with PJBF in Pakistan to assist in the matters of investments and improvement in trade; hence supporting the aim of Public Private Partnership which is essential for growth in any country.
Japan External Trade Organization (JETRO), operating under the Ministry of Economy, Trade and Industry (METI) of Japan was established in 1958. It opened its office in Karachi, the second overseas office anywhere in the world. In their published business directory of Japanese and Japanese Affiliated Companies in Pakistan, it mentions the names of almost 60 companies having either 100% ownerships or in Joint Venture with Pakistani companies. JETRO's prime objective, as the name implies, is to promote trade activities and encourage investments between Pakistan and Japan. Almost 200 companies are listed who are actively involved in business with Japan.
There are three Japanese Associations of Commerce and Industry (JACI) located in Karachi, Lahore and Islamabad. The purpose of JAIC is to meet regularly, exchange notes in respect of trade and investments and convey to either government their observations regarding business matters that require their attention. Japan's major imports from Pakistan include chemicals, yarn, textile products, leather and metals while Pakistan's major imports from Japan include automobile and automobile parts, steel, rubber products as well as a variety of machinery and Hi-Tech items. Investments by Japanese Companies during the last decade is in excess of $800 Million. The Japanese Companies operating in Pakistan are grasping a sales volume of over Rs 300 billion. Recent investments into Pakistan by Japanese concerns are Yamaha Motors, NIPRO Corporation, Morinaga, Marubeni-Itochu Steel and Ajinomoto Corporation while several Japanese entities are actively looking towards Pakistan as a potential destiny. Thanks to our Ambassador in Japan, Asad Majeed Khan who has been guiding prospective investors about the immense opportunities available in Pakistan. Imports from Japan is close to 1.5 Billion Dollars while exports from Pakistan stand a little over 200 Million Dollars; thus, tilting the trade balance heavily in favour of Japan. During the visit of the Japanese State Minister of Foreign Affairs in May this year with whom PJBF members met at the Governor house along with several icons from different trades emphasized the need for increased trade to bridge this wide gap. Over 800 Japanese are resident all over Pakistan which include those from Japanese business houses, members of the diplomatic corps, JICA, JETRO and also NGO's from Japan operating in Pakistan.
LONG LIVE PAKISTAN-JAPAN FRIENDSHIP!!
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