Gen. Musharraf tried his best to make the visit as
productive as possible
From SHAMIM AHMED
RIZVI
Islamabad
Mar 25 - 31, 2002
The outcome of President General Pervez Musharraf
4-day official visit to Japan has evoked mixed reactions. It has not
been successful in the sense that it failed to achieve any fresh grant
or loan but it has certainly helped in a better understanding of
Pakistan's economic and political problems and obtain a solemn pledge
from the host country for its continuous political support and
economic assistance in future.
General Pervez Musharraf's visit had both political
and economic content. As far as political aspect is concerned it is
reassuring that the Japanese Prime Minister endorsed Pakistani
position on tension in South Asia.
However, economic aspect of the visit has left much
to be desired. Japan being Pakistan's biggest trading partner (with
balance of trade dangerously favouring Tokyo), Islamabad legitimately
expected some economic relief or concessions. In the post-September 11
period, Pakistan has successfully negotiated debt relief packages with
some countries including the United States that has agreed to write
off debt worth about 1 billion dollar but Japan so far has given no
indication of providing any relief on $ 5 billion debt. Again Pakistan
was seeking restoration of normal export credits, export insurance for
Pakistani exporters and better market access but no meaningful
progress is in sight. The only positive indicator is an agreement to
initiate high-level economic policy dialogue to institutionalize the
existing economic cooperation.
That any fresh financial aid from Japan was
unlikely was predicted by the head of Economic and Development section
of the Japan embassy in Pakistan Miss Asoko Okai on the very day
President Musharraf left for Tokyo. In a press interview categorically
said "as President Pervez Musharraf embarks on the tour of Japan,
he would get latter's solemn pledge for continuous political support
and economic assistance in the future, but announcement of any further
ODA loan or financial grant is highly unlikely. Japan has
categorically informed Pakistan that waiver, or swap, for its $5
billion debt, which it owes to Japan, is not possible due to legal
bindings."
"Japan played key role to get the best
possible agreement for Pakistan in Paris Club meetings for the
rescheduling of its $15.5 billion loans. Now bilateral arrangements
between the two countries for the rescheduling of $5.8 billion
Pakistan owes to Japan, have to be concluded by the end of September
this year. This will also be done in the best possible way", Okai
added.
About the possibility of new commitments during
President Musharraf's tour of Japan, she said: "Well, it's none.
For the time being, we will wait and see the economic situation of the
country and then decide. This is also not a matter to be discussed at
such a high level".
It cannot, however, he denied that Gen. Musharraf
tried his best to make the visit as productive as possible. His main
focus has been the business community and to allure foreign investment
in Pakistan. In his address to the Pakistan Japan Forum on Tuesday the
day he arrived in Tokyo President General Pervez Musharraf extended an
open invitation to Japanese investors to use his country as a hub of
industry to export their products around the world. Elaborating upon
the business prospects in Pakistan, he pointed out that economic
revival being one of the four goals of his government, many and varied
are the opportunities unfolding in widening range, as it is working
determinedly for opening up the market and reducing tariff as a
committed member of the World Trade Organization. This, he made it a
point to explain, why his government has opened all the sectors of the
economy to foreign investors. The economic relationship between the
countries as marked by Japan's top position among bilateral donors to
this country and quite strong Japanese presence in our trade and
industry, the need for elaborating upon the prospects of further
strengthened ties must have been felt due to the economic degeneration
caused by long decades of economic mismanagement from the thrust of
flawed governance.
On the second day of his 4-day official visit to
Japan, President General Pervez Musharraf held a meeting with the top
executives of 20 leading corporate companies and invited them to make
investment in Pakistan in a wide range of profitable projects. He
impressed upon them the importance of Pakistan's commercially
strategic location from where, he pointed out, the Japanese
entrepreneurs could successfully seek export outlets into the Middle
East countries and Central Asian Republics, besides South Asia. He
also emphasized that after the return of peaceful political conditions
in Afghanistan with Pakistan's active support to the coalition
partners in the war against terrorists in Afghanistan, access to the
entire Central Asia was no more difficult to take advantage of. In
this context, he advised the Japanese investors to participate in the
laying of a gas pipeline from Tajikistan to Pakistan via Afghanistan,
which would benefit Pakistan's economic development. The President
also pinpointed the avenues of oil and gas development, energy sector,
information technology and medium scale industries in which Japanese
investors could support development efforts in Pakistan.
The Finance Minister, Shaukat Aziz, offered a
concrete proposal to the Japanese entrepreneurs in his meeting with
them when he said that the government would be prepared to allocate
special industrial areas in the different Export Processing Zones in
Pakistan exclusively for Japanese investors. He pointed out that they
would be enjoying tax holiday, including zero tariff facilities in
addition to freedom from labour laws in these zones.
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