The year 2022 signifies 70 years of Pakistan Japan diplomatic relations which were established on April 28, 1952. While we rejoice the important milestone of 70 years of close cooperation, the connection between the two can, in a sense, be traced back to 538 AD when today’s Pakistan, then a cradle of the Gandhara Civilization, served as a source for the promotion of Buddhism in Japan. Gandhara flourished in this region from 500 BC to 10 AD and Buddhism reached Japan during the sixth century. Mutual exchanges and cooperation continued, such as the establishment of a chair for the Urdu language in 1930 at the University of Tokyo and the Takushoku University.

Pakistan had gained independence in 1947 and Japan at the time was fast emerging from the ashes of World War II which had caused immense damage to world economies besides destroying the vital infrastructure. Both countries started their relationship as free nations. Pakistan was the only major country from South Asia that attended the San Francisco Peace Conference in 1951. Speaking courageously at the conference, Pakistan’s foreign minister, Sir Zafarullah Khan talked about peace, justice and reconciliation and had this to say “The peace with Japan should be a premised-on justice and reconciliation, not on vengeance and oppression. In future Japan would play an important role as a result of the series of reforms initiated in the political and social structure of Japan which hold out a bright promise of progress and which qualify Japan to take place as an equal in the fellowship of peace loving nations". Such needed gestures, and rightly so at the time, led both to establish their diplomatic ties on April 28, 1952. The emergence of Japan as a successful economy validates the essence with which Pakistan decisively spoke for Japan at their formative stage.

Ever since, Pakistan-Japan relationship has made steady progress and has kept growing to the mutual benefit of both countries. Japan has subsequently remained a cornerstone of Pakistan’s economy as well. Interestingly, Pakistan was the destination of the first inaugural trade delegation of Japan 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 Bank of Tokyo was established in Karachi in 1953 and the metropolitan was also selected for opening their second office of the Japan External Trade Organization (JETRO) which continues to operate. After the United States, Pakistan was the second largest trading partner of Japan, mainly catering to Japan’s need for raw material, such as jute and cotton, and fulfilling over 50 percent of their requirement at the time. The Japanese, on the other hand, reciprocated by exporting technological advances to Pakistan. Spindles manufactured in Japan contributed a great deal to the progress of our textile sector and which even today contributes a major portion towards employment and export proceeds. Taking the lead to setup automobile manufacturing units is also a classic example where Japanese automobile sector enjoys over 90 % of their vehicles in Pakistan. Japan has remained as one of the major bilateral development partners to Pakistan since 1954, extending assistance in multifaceted sectors of development. This includes Yen Loan Assistance for development projects, outright grant assistance for social sector projects and technical cooperation for technology transfer and human resource development.

During the 1960s, Pakistan occupied a prominent place in the allocation of Japanese assistance to the developing world and remained among the top recipients in the region. Japan’s diplomatic relations with Pakistan had, and continues to have, great significance. Both nations were and are supportive of each other having convergent views on most international issues and supported each other at various forums. While Japan was recovering from the aftermath of World War II, Pakistan was trying to establish itself as a new nation. No wonder then that the personal reception and the only one by Emperor Showa of the visiting Pakistani President Ayub Khan in December 1960 at the Haneda Airport, became a landmark in Pak-Japan diplomatic goodwill. This visit also paved the way to start an important economic relation, as the then Japanese Prime Minister Hayato Ikeda (1960-64) had just commenced the Official Development Assistance (ODA) programme and of which Pakistan became a major recipient after his visit to Pakistan in 1961. Prime Minister Ikeda is also known for his Income Doubling Plan, which promised to double Japan's GDP in ten years. The initial assistance of $20 million in 1961 swiftly reached 80 percent of the total ODA by 1964. The assistance was used for mega projects as well as for industrialization. Japan is still one of the largest trading partners of Pakistan with an annual trade of over $1.5 billion. However, bilateral trade has been exceedingly in favour of Japan due to the dismal performance on the part of exports from Pakistan.

Inspired by a common desire to promote and further strengthen the relations between the two countries, both governments signed a cultural agreement in 1957. Japanese Prime Minister and Foreign Affairs Minister Nobusuke Kishi and Pakistani Prime Minister Huseyn Shaheed Suhrawardy represented their respective countries at the signing ceremony. It is worth mentioning that Prime Minister Kishi was the first to visit Pakistan in 1957. According to the agreement, it was decided that both the countries would provide each other with every possible facility to ensure better understanding of the culture of their respective countries, especially by means of books, periodicals and other publications, lectures, concerts and theatrical performances, art exhibitions and cultural films. Under this agreement, both the countries have initiated several projects and conducted various activities for strengthening the cultural ties between them. Currently, the Pakistan Japan Cultural Association (PJCA) continues to foster cultural ties by offering classes, trainings and seminars on related topics with the support of Japan’s Embassy and the Consulate General.

On the diplomatic front, Pakistan and Japan found themselves on the same side of the divide during the Korean War and the Cold War. Both countries enjoy uniting positions and have backed each other at different world forums.

Japan, through sheer determination and hard work of its citizens, had soon become a modern industrialized nation and started extending Yen Loan Assistance to the developing countries and where Pakistan became a major recipient. Yen credits are extended on soft terms, characterized by very low interest rate and long maturity. These loans thus support poverty reduction through economic growth and institutional building. The first Yen loan was provided to Pakistan in 1961. Since then, Japan has supported the development of infrastructure in Pakistan, mainly in areas such as highways, telecommunication, transportation and power generation. Development projects of significance that were funded by Japan include the Indus Highway, telephone exchanges throughout Pakistan, the Thermal Power Station at Jamshoro, the Kohat Tunnel, the Bin Qasim Thermal Power Station, the Construction Machinery Training Centre, Load Dispatch System Upgradation in all provinces and countless others in the social sectors under their Grant Assistance Programme.

Diplomatic relations continued to grow between Pakistan and Japan, and several agreements were inked in the ensuing years, such as the International Postal Money Order Exchange Agreement, the Pakistan-Japan Agreement regarding Establishment of a Telecommunication Research Centre, and the Pakistan-Japan Plan of Operation for Engineering and Economic Survey for Development of a New Ocean Port at Pitti Creek in Pakistan. The Soviet War which started in 1980 and with Pakistan’s role in the withdrawal of the Soviet forces from Afghanistan contributed towards further fortifying Pak-Japan ties.

In response to the nuclear tests conducted by India and Pakistan in May 1998, Japan announced freezing the grant aid for new projects and Yen loans to both countries. However, after President Pervez Musharraf’s visit to Japan in March 2002 and Pakistan’s important contribution to the global fight against terrorism in the aftermath of 9/11, the relations between the two countries entered a new era.

Japan supported Pakistan’s counter-terrorism efforts by providing freshwater and fuel to Pakistani vessels participating in the Operation Enduring Freedom-Maritime Interdiction Operation (OEF-MIO) in the Indian Ocean. Sincerely appreciating Japan’s generous technical and financial assistance since 1954, Pakistan issued a special postage stamp in 2004. Recognizing the geopolitical importance of Pakistan and appreciating its role in fighting terrorism, Japan announced further expanding strong collaboration at all levels. Both the countries affirmed to work towards a renewed, enhanced and robust relationship, and signed a declaration to this effect on April 30, 2005.

Both sides appreciated the role of leadership exchanges in enhancing bilateral relations in different areas, and agreed to continue holding dialogues on politics, security, economy and joint business. To extend support to the Pakistani government in its efforts to consolidate democracy in Pakistan and to facilitate social and economic development in the country, Japan hosted the Friends of Democratic Pakistan Ministerial Meeting and the Pakistan Donors Conference in Tokyo in April 2009, which earned pledges in excess of $5 billion. President Asif Ali Zardari visited Japan in 2009 and then again in 2011. Both the visits have provided further impetus to strong bilateral ties.

Japan has supported Pakistan on various fronts. Like a sincere friend, Japan came forward to help Pakistan after the earthquake of 2005 which killed more than 80 thousand people and yet again in the countrywide floods in 2010 which caused massive losses estimating over $40 Billion. Japan announced contributions for the flood relief and rehabilitation efforts at the Pakistan Development Forum held on November 14th & 15th 2010. Japan also sent Self-Defence Force helicopters and medical teams for the relief and rehabilitation of the flood survivors. Later and reciprocating, Pakistan expressed its solidarity and support to the government and the people of Japan in the aftermath of the devastating earthquake and tsunami that hit Japan in March 2011. Pakistan provided two C-130 aircraft loaded with relief goods to Japan. Representing the sentiments of the entire Pakistani nation, the Pakistan Embassy in Tokyo and members of different local outfits of Pakistanis helped the survivors by providing them hot food, disposable water bottles and other goods, and voluntarily worked in the shelters to provide them relief as much as humanly possible under dire conditions.

Japan is the third 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 $650 billion with Pakistan’s share at a mere 0.05 percent. Our annual imports from Japan is roughly $2 billion whereas our exports fetch a meagre $250 million. To bridge this gap, Pakistan needs to move away from the traditional export of raw materials and concentrate more on value-added goods.

Pakistan stands among the top producers of cotton, wheat, fish, sporting goods, cutlery, gems, surgical instruments, fruits, dairy products and the like.

If only Pakistan were to succeed in acquiring state-of-the-art technology by inviting joint ventures with Japanese companies, the trade gap could be substantially reduced. Pakistan needs to educate its 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 that holds a great potential for products produced in Pakistan, if only the standards, quality and supply schedule demanded by them are meticulously met.

Pakistan is strategically located, besides offering a market with over 220 million people. It has the requisite manpower available and is blessed with natural resources that any nation could desire. It offers immense opportunities to Japanese investors to establish and expand their businesses here. All Pakistan needs to do is to provide the necessary infrastructure and requisite business environment. In today’s world, governments are competing against one another to attract investments, and with the markets in and around Pakistan, there is no reason why Pakistan should stand wanting. Pakistan is now offering a Special Economic Zones to foreign investors 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 actively engaged. Pakistani businessmen are being encouraged to establish contacts with their counterparts in Japan for joint ventures and export of value-added goods from Pakistan. Both the Pakistani Embassy in Japan and the Pakistan-Japan Business Forum (PJBF) in Pakistan established in 2001, are assisting and connecting the business communities of both countries. This year marks the 70th anniversary of the establishment of their relations. To mark this historic event, different events have been organised and several others have been planned to be held throughout the year both in Japan and Pakistan.

Long Live Pakistan Japan Dosti!!!

The writer is a founding member of the Pakistan-Japan Business Forum and its current Chairman

Copyright Business Recorder, 2022