Report on MEXPA’s visit to High Commission of the Islamic Republic of Pakistan

Mexpa’s delegation headed by President Encik Kabur Ibrahim along with Puan Azizah, Puan Sevaran Kaur JP and Mr Chua Chee Hsieng paid a courtesy visit to H.E. Masood Khalid on 10th April 2012. His Excellency spoke of Pakistan and their proud achievements.

H.E. said that today Pakistan was a nation of 187 million hardworking and dynamic people committed in upholding dignity and honor of their country. It has been the centre of the great Indus valley with Gandhara and Mughal civilizations. H.E. sited that the ruins of Taxila, Mohenjodaro and Harappa were testimony of rich cultural heritage. Pakistan is a country adorned with snow covered peaks, fiery deserts, fertile mountain valleys and irrigation plants. The mountains north serve as the juncture of 3 of the world’s highest mountain.

Agriculture is the backbone of the country’s economy. Wheat is the principal good crop while cotton, rice, sugar cane, millet and tobacco are grown in plenty. Pakistan is home to good quality fruits, including famous mangoes. Pakistan is also a sanctuary to natural resources including coal, gas, oil, copper, iron and salt.

Despite challenges posed by same terrorist, H.E said, Pakistan had continued to march forward to consolidate its policy and economy. With a free media, independence judiciary and a representative table parliament, Pakistan has started a new parliament year and election is in 2013. H.E. said that the present government was seeking to promote reconciliation and consensus national issues. The government has taken difficult decisions to maintain economic stability. Pakistan has crossed a US$ 25 billion in export he said.

H.E. announced that the recent remittance in Pakistan increased to US$ 11.2 billion. Great opportunities were available for investment and Malaysia businessman are encouraged to look at agriculture, textiles, telcons, energy, services, construction and housing. There is abundance of raw material and cheap skilled labor which make Pakistan an ideal market for foreign investment. Pakistan and Malaysia have always enjoyed close fraternal ties. Many things are seen in common H.E. Masood Khalid said, such as religion (Muslim commonly) religion, traditions, culture and even food. Malaysia & Pakistan has been cooperating with each other in international forums. Pakistan is a member of OK, Commonwealth, NAM, ARF, Asean, ACD and D-8.

Bilateral contacts and exchanged visit continue. His Excellency informed the delegates that a Malaysia Pakistan Business council had been formed for the 2 countries and will help the private sector’s too Pakistan at the moment is exporting bag, vegetables and livestock to Malaysia. Pakistan is also assisting Malaysia in the halal sector. Trade is important component of bilateral cooperation.

Pakistan exports have shown an increase of nearly 76%. He said that Pakistan could be a major source of raw material for Malaysia industries. He proposed with continuous support from the Malaysia government Islamic finance and banking can be shared. Three business forums were held last year in Malaysia has generated considerable interest in the Malaysia business community. H.E. said that now it was only needed to create an awareness of the trade and investment opportunities available under the FTA. In terms of education, H.E. said that there were 3,000 Pakistan’s students in Malaysia. 76,000 Pakistan’s have visited last year. Flights have been increased to 5 times a year. This enables promoting mutual understanding of each other’s cultures. H.E. plans to take existing ties to great height.

Some Fast facts on Pakistan are drawn:

Official name: Islamic Republic of Pakistan
Father of the nation: Quaid-e-Azam Muhammad Ali Jinnah (1876-1948)
National poet: Allama Mohammad Iqbal (1877-1938)
Head of state : Asif Ali Zardari, President
Capital: Islamabad
Government: Parliamentary form
Parliament: Consists of two houses
-Senate (Upper House) and National Assembly (Lower House)
Total Area: 796, 095 km2

Provinces

Punjab: 205,344 km2
Sindh: 140,914 km2
Khyber Pukhtoonkhwa: 74,521 km2
Balochistan: 347,190 km2

Federal Territories

Federally Administrative
Tribal Areas (FATA): 27,220 km2
Islamabad: 906 km2
Population: 187 million
Administrative units: Pakistan is divided into four provinces, viz., Khyber Pukhtoonkhwa, Punjab, Sindh and Balochistan. The tribal belt adjoining Khyber Pukhtoonkhwa is managed by the Federal Government and is named FATA (Federally Administered Tribal Areas). Azad Kashmir and Northern Areas have their own respective political and administrative machinery. Provinces of Pakistan are further divided into districts.
Geography: Located in South Asia, Pakistan shares its eastern border with India and the north-eastern border with China. Iran makes up the country’s south-west border and Afghanistan runs along its western and northern edge. The Arabian Sea is Pakistan’s southern boundary with 1064km of coastline.
Climate: Sub-tropical; cold in the highlands
Religion: 95% Muslims, 5% others
Currency: Pak Rupee
Annual per capita income:
US$ 1,254, Purchasing Power Parity US$ 3,100
GDP: US$ 200 billion (2011); Forex reserves, US$ 16.34 billion (02.03.2012); Workers’ remittances US$ 11.2 billion; KSE 100 index 11,289
Languages: Urdu (national) English (official)
Literacy rate: 57.7%
Import: US$ 40.414 billion (2010-2011) industrial equipment, chemicals, vehicles, steel, iron ore, petroleum, edible oil, pulses and tea.
Exports: US$ 25 billion (2010-2011) cotton, textile goods, rice, leather items, carpets, sports goods, handicrafts, fish and fish prep and fruit.
Natural resources: Hydrocarbons, coal, iron ore, copper, salt, limestone
Major industries: Textiles, cement, fertilizer, steel, sugar, electric goods
Major crops: Cotton, wheat, sugar cane, rice, millet, maize, tobacco
National sport: Hockey
National flower: Jasmine
National tree: Deodar (Cedrus Deodra)
National animal: Markhor
National bird: Chakor (Red-legged partridge)
Flora: Pine, oak, poplar, deodar, maple and mulberry
Fauna: Pheasant, leopard, deer, ibex, chinkara, black buck, neelgai, markhor, Marco-Polo sheep, green turtles, river & sea fish, crocodile and waterfowls
Archaeological sites:
Mohenjo Daro, Harappa, Taxila, Kot Diji, Mehr Garh and Takht Bhai
Tourist resorts: Murree, Quetta, Hunza, Ziarat, Swat, Kaghan, Chitral and Gilgit
Major cities: Islamabad, Karachi, Lahore, Peshawar, Quetta, Rawalpindi, Hyderabad, Faisalabad, Multan and Sialkot

Pakistan is known for its nature and beauty and is blessed with unsurpassed natural beauty from white snows on the peak of Karakorum and Himalayan. Lakes such Naran and Kaghan exists to capture beauty. Pakistan is famous for tourist destinations and Malaysia business people should explore this opportunity. Many activities such as tracking, mountain climbing, boar hunting, safaris, camel and yak safaris, tour fishing and bird watching for nature love.
Remarkable million of vegetation and wildlife are there. In terms to religions Mahayana Buddhism was developed here, and as did the Sikh religion under Guru Nanak, but Islam is particularly poignant in Pakistan. Religion plays an important role in the lives of the people.

For more information to the Malaysia businessman, Pakistan has secured and granted areas to Malaysia for raw materials, intermediate goods and machinery and secured core products like fruit, vegetables, seafood, beverages, confection, biscuits, germs, jewellery, cotton, fabrics, blankets, linen, textile products, tents, tarpaulin medical and surgical instrument. Malaysia exports to Palestine are palm oil, electrical, equipment, machinery, chemical, rubber wood, synthetic yarn, automatic data parts and instrument.

On February 28 this year Malaysia government organized 200 delegation team was impressed with H.E’s say and proposed a trade mission to Pakistan with manufactures of various industries will be organized. With thanks to His Excellency delegates completed their visits by12.30pm.

Question for Trade Magazine:
1. Would you be able to tell us the latest trade development for your country, particularly in the context of Asean?

Pakistan values its trade relations with ASEAN. We see ASEAN as an emerging regional block where members have taken bold and progressive steps in eliminating barriers to facilitate the movement of goods and services. Pakistan is one of the Sectoral Dialogue Partners of ASEAN where we are interacting with the ASEAN Community on eight sectors. We have been striving to become a full dialogue partner with the ASEAN Community, since long. In fact Pakistan is the only Sectoral dialogue partner that has not graduated to the full Summit Partnership. We are grateful to the Government of Malaysia for supporting Pakistan’s full dialogue partnership in the ASEAN community.

2. How would you categorize bilateral cooperation between Pakistan and Malaysia? How would you degree the relationship?

Bilateral trade between Malaysia and Pakistan has been on an upward trend. Our exports to Malaysia increased from $ 145 million in 2010 to $ 257 million in 2011 registering an increase of about 77%. Similarly imports have increased from $ 2.355 billion to $ 2.589 billion registering an increase of 9.95%. Bilateral trade grew from $ 2.5 billion to $ 2.847 billion in the same period, showing an increase of 13.85%.

3. What would you say is the main occupation of the foreign policy for trade and investment for your country?

Promotion of trade and investment is an important pillar of the foreign policy of Pakistan. Economic diplomacy is what actually drives the foreign policy of Pakistan. We believe that establishment of trade and investment relationship between Pakistan and other countries would set the stage for deepening relations in political and diplomatic spheres. Ever since I have taken over as the High Commissioner of Pakistan to Malaysia, I have placed economic diplomacy at the core of my efforts to bring two countries closer to each other. We have traditionally close relations with Malaysia which are being reinforced by strengthening trade and economic relations between the two countries.

Pakistan and Malaysia have signed a Free Trade Agreement in 2007 under which a preferential duty regime has been put in place. The agreement provides a unique opportunity to the businessmen of both countries to benefit from trade concessions offered by the Agreement. The High Commission has organized 3 Business and Investment seminars in Kuala Lumpur over a period 1 year and we have received tremendous response from Malaysia business community. A contingent of 56 Malaysian businessman visited Pakistan on the eve of Expo Pakistan 2011 which was held from 19-22 October 2011 at Karachi. The Malaysian delegation was the largest of all foreign contingents. A number of potential business deals were discussed and some have been sealed. There is a genuine desire on both sides to engage in mutually beneficial business ventures. A joint meeting of the Business Council of two countries was held on 27 February 2012 at Kuala Lumpur which allowed the business communities of both countries to sit across the table and chart the way forward.

4. What are the potential areas of investment that Pakistan can offer the Malaysia business community?
Pakistan is targeting Malaysian investment in the following areas:
i. Energy and Power
ii. Telecommunications
iii. Finance and Banking
iv. Oil and Gas
v. Agro-processing
vi. Infrastructure
vii. Ports and Shipping
viii. Railways
ix. Halal sector

5. What are your areas of concern where you feel the Malaysian economy can open up?

The services sector in Malaysia is still not fully liberalized. The Government of Malaysia has embarked on a programme to gradually open up the service sector. We welcome the government decision to open up education, healthcare, business, computer and professional services as this will enable Pakistani service providers and professionals to benefit from the opportunities existing in these sectors and contribute to the economies of both countries. Pakistan has qualified human resource and is in a position to address the manpower shortage in Malaysia.

6. How optimistic are you that the people of Malaysia will be able to meet the challenge of future trade and business change?

I think the key challenge facing the Malaysian businessman is how to adapt themselves to the new business paradigm which thrives on innovation and creativity. Malaysia is aspiring to achieve the status of a developed economy by 2020 for which the companies need to focus on four important productivity levers:

• Incorporating the use of technology in work processes;
• Enlarging market share through globalization;
• Developing workforce by upgrading skills and adopting talent-management practices; and
• Adopting good business management practices

The Government is fully alive to these challenges and has launched various programmes like Talent Corp, SME Development Programme, Task force on facilitating business (PEMUDAH) and others to accelerate the march towards achieving the status of a developed economy by 2020.

7. Finally Mr. Ambassador, if you have a question for the international community what would it be?

I would request the international community not to rely solely on media to assess Pakistan. Seeing is believing. I would advise them to see for themselves the opportunities which exist in Pakistan. Pakistan is facing problems due to a difficult and complex geo-political situation. We are a population of 180million people, 60% of whom are below the age of 20. The investment regime of Pakistan is quite liberal with all sectors of economy open to foreign investment. The government has established a network of Export Processing Zones to attract foreign investment to Pakistan. There is a need to take closer look at the investment regime of Pakistan and make an informed decision about investment in Pakistan.

The best way to explore Pakistan would be by way of participating in EXPO Pakistan 2012 which will be held from 4-7 October 2012 at Karachi Expo Centre. EXPO is a general trade exhibition representing all sectors of economy and brings together Pakistani exporters and manufacturers under one roof. It provides an ideal platform to foreign buyers to network with their Pakistani counterparts and know more about Pakistani products. I would request more Malaysian businessman to register for the event.

Report prepared by;
Puan Sevaran Kaur JP
State rep. (NS)/ Liaison officer of MEXPA
21/5/2012