Pakistan-Japan relations now expand over half a century and not many of us are aware of some historic facts that exist. Pakistan was the destination of the first inaugural trade delegation under the allied occupation in 1949. Within the first decade of Pakistan's independence, some 50 Multinational Japanese companies had already set up their offices, mainly for trading purposes.
The third overseas branch of the then Bank of Tokyo was established in Karachi in 1953 while for the opening of the second office of Japan External Trade Organisation (JETRO), the location selected was also Karachi. Pakistan was the second largest trading partner of Japan only after the United States mainly catering to Japan's need for raw material such as jute and cotton and fulfilling over 50% of their requirement. Japan has remained as one of the major bilateral development partner to Pakistan since 1954, extending assistance in multifaceted sectors of development.
This includes Yen Loan assistance for development projects, grant assistance for social sector projects and technical co-operation for technology transfer and human resource development. During the 60's, Pakistan occupied a prominent place in the allocation of the Japanese assistance to the developing world and remained amongst the top recipients in the region. Currently, the annual Japanese assistance to Pakistan is around USD 500 Million annually.
Japan has the second largest economy in the world. It is also a major trading partner of Pakistan as well as a major donor. Their total global imports are in excess of 500 Billion Dollars with Pakistan's share at a mere 0.05 %. Our imports from Japan are close to 2 Billion Dollars annually while our exports stand at a meager 140 Million Dollars only. To bridge this gap, we need to move away from traditional export of raw materials and concentrate more on value added goods. Pakistan stands amongst the top producers of cotton, wheat, fish, sporting goods, cutlery, gems, surgical instruments, fruits, dairy products and the like. If only we succeed in acquiring state of the art technology by inviting joint ventures with Japanese Companies, the gap can be substantially reduced.
Recently, a major textile producer of Pakistan has signed up with Aeon Group of Japan having 7000 outlets, to export their merchandise to Japan. Similarly, an agriculturalist delegation comprising of very important members with diversified interests visited Pakistan this month and while showing interest in our agriculture produce assured Pakistan to support both technically and financially as well as provide Pakistan with business.
We need to educate our exporters about business practices in Japan, focus on value addition, and be aware of the demands of the local market which in contrast to the western markets is very different. It is a quality conscious market which holds a great potential for products produced by Pakistan, if only we can meet the standards, quality and supply schedule demanded by them.
Pakistan is strategically located besides offering a market with over 170 Million people. It has the requisite manpower available and is blessed with natural resources that a nation can desire. As such, it offers immense opportunities to Japanese investors to come, establish and expand their businesses. All we need is to provide the necessary infrastructure and requisite business environment. In today's world, governments are competing amongst themselves to attract investments and with the markets in and around Pakistan; there is no reason why we should be left behind. Pakistan is now offering Special Economic Zone to Japanese with attractive benefits such as sole ownership, tax exemptions, repatriation of earnings and single window operations.
The Board of Investment set up for this purpose is making efforts while National Industrial Parks, another organisation under the Ministry of Industries is offering developed industrial estates in different provinces at very reasonable terms. Japanese businessmen as well as Japanese Government have been in discussion with our counterparts on this matter. I am confident that such combined efforts portraying public-private partnership will bring about meaningful results to attract joint ventures for Pakistan which in turn will provide job and business opportunities to Pakistanis.
Pakistani businessmen are encouraged to establish contact with their counterparts in Japan for joint ventures and export of value added goods from Pakistan. Both the Pakistan Embassy in Japan and the Pakistan-Japan Business Forum in Pakistan are available to assist and connect the business communities of both the nations. Our Economic Section of the Pakistan Embassy in Tokyo is very actively pursuing the agenda of increasing trade between the two nations and bringing investments into Pakistan from Japan. Similarly, Pakistan-Japan Business Forum and its members under the flagship of Abdul Kader Jaffer, Chairman, are pursuing with Pakistan authorities to minimise the bottlenecks that stand in the way of trade and investments between Pakistan and Japan.
(The writer is Director, Pakistan-Japan Business Forum.)