PakAlumni Worldwide: The Global Social Network

The Global Social Network

Is Pakistan's Global Diplomacy Working?

Diplomacy underlies all ties between nations. Diplomatic relations form the basis of travel, trade and investment between countries. The probability of armed conflict increases in the absence of diplomacy. In light of the recent failure to keep Pakistan off the terror financing watch list, the following question is being asked by political commentators and pundits: Is Pakistan's diplomacy working? To begin to answer this question, let's first look at where Pakistan ranks on Lowy Diplomacy Index. The 2017 Lowy Institute's Global Diplomacy Index visualizes the diplomatic networks of 60 G20, OECD and Asian nations, allowing users to view and compare some of the most significant diplomatic networks in the world.

Pakistani Diplomatic Mission Around the World. Source: Lowy Institute

Lowy Institute Data:

Pakistan has 116 diplomatic missions around the world. This figure includes 85 embassies, 29 consulates and 2 permanent missions. Pakistan ranks 27th among 60 countries ranked by Lowy. It ranks 7th in Asia .

Pakistan's arch-rival India has 181 missions, including 124 embassies and 48 consulates. India ranks 12th in the world and 3rd in Asia on Lowy Diplomacy Index. United States is number 1 and China is number 2 on diplomacy index. US has 273 diplomatic missions while China has 268. France ranks 3rd, Russia 4th and Japan 5th in the world.

Foreign Policy Objectives:

Pakistan does have a large network of diplomats and extensive presence of diplomatic missions around the world. But what is it for? The answer to this question requires understanding Pakistan's foreign policy objectives.

Pakistan, like any other nation, needs to ensure its national security in all its dimensions: political, economic and military. The nation has to participate in various international fora. It needs to project its soft power to cultivate friendly cultural and educational ties. Part of it is encouraging people-to-people contacts by promoting travel, trade and tourism.

Pakistani Diplomats Responsibilities:

Pakistan foreign service officers posted around the world have the responsibility to not only project Pakistan and its policies in a positive way but also to be the nation's eyes and ears giving information and feedback to policymakers back home.

Pakistani diplomats need to engage with their host nation's influencers as well as other nations' diplomats in foreign capitals and international institutions to promote friendship and goodwill for advancing Pakistan's foreign policy agenda.

Pakistani Diaspora:

Pakistani missions have the responsibility to provide services to 9-million strong Pakistani diaspora, the world's sixth largest.  This diaspora not only sends home nearly $20 billion a year but can also help in promoting Pakistan's friendly ties with the host nations. Pakistani diaspora represents a huge market opportunity for Pakistani exporters. Highly accomplished overseas Pakistanis can be a source of investment and expertise for their country of origin.

International Geopolitics:

All policies must take into account the shifting geopolitics of the world.  Former US Secretary of State Henry Kissinger put it best when he said: “America has no permanent friends or enemies, only interests.”

Rapidly unfolding events confirm shifting post-cold-war alliances in South Asia. The Cold War ended in early 1990s when Pakistan was closely allied with the United States. Now China-Pakistan defense collaboration is strengthening. Chinese President Xi Jinping has committed investment of over $45 billion in Pakistan, representing the single largest Chinese investment in a foreign country to date.

Pakistan's Key Relationships:

Pakistan's key relationships are with China, US, India, Russia, Afghanistan, Iran and the European Union. These relationships require the greatest attention by Pakistani foreign and security policy establishment to advance the country's foreign policy agenda.

These relationships need the most care and feeding to achieve the objectives of peace, development, security and prosperity. The best and the brightest of Pakistani diplomats need to  be assigned to manage these crucial ties.

Current Assessment:

It's not fair to judge the entire foreign policy establishment based on the negative outcome of just one meeting at FATF. However, Pakistan needs to learn from it and fashion its policy in a rapidly evolving geopolitical reordering. Long term, Pakistan needs to continue to cultivate close ties with its traditional friends in China and the Middle East.  Pakistan must take seriously what Henry Kissinger said about US friendships: “America has no permanent friends or enemies, only interests.” It must also assume that other leaders in the rest of the world say privately what Kissinger said publicly. 

Summary:

 Diplomacy underlies all ties between nations. Diplomatic relations form the basis of travel, trade and investment between countries. Pakistan ranks 27th in the world and 7th in Asia on Lowy Diplomacy Index. The 2017 Lowy Institute's Global Diplomacy Index visualizes the diplomatic networks of 60 G20, OECD and Asian nations, allowing users to view and compare some of the most significant diplomatic networks in the world.

In light of the recent failure to keep Pakistan off the terror financing list, the following question is being asked by political commentators and pundits: Is Pakistan's diplomacy working?   It's not fair to judge the entire foreign policy establishment based on the negative outcome of just one meeting at FATF. However, Pakistan needs to learn from it and fashion its policy in a rapidly evolving geopolitical reordering. Long term, Pakistan needs to continue to cultivate close ties with its traditional friends in China and the Middle East.  Pakistan must take seriously what Henry Kissinger said about US friendships: “America has no permanent friends or enemies, only interests.” It must also assume that other leaders in the rest of the world say privately what Kissinger said publicly. 

Related Links:

Views: 76

Comment by Riaz Haq on March 7, 2018 at 8:06pm

EU Parliament Grants Pakistan Special Trade Status Despite Human Rights Warnings

MARCH 2, 2018

https://missionsbox.org/news/eu-parliament-grants-pakistan-special-...

BRUSSELS – The European Parliament warned Pakistan last week that the renewal of its favored status trade deal would be dependent upon the government’s release of a woman, Asia Bibi, who has been held on death row on a blasphemy case since 2010.

Prior to adjournment, however, the parliament voted to continue to extend economic favor to Pakistan despite the fact that the woman’s appeal is still pending in the Supreme Court of Pakistan. The extracted delay has been decried as a human rights issue that must be addressed not only by the EU but by other organizations around the world.

From a global standpoint, the European Union has held the greatest leverage to prompt action by Pakistan leadership. The EU granted Pakistan Generalized System of Preferences Plus (GSP+) in 2013. Under this special trading status, 20% of the country’s exports to the EU have been tariff-free. Another 70% of their exports were tariffed at preferential rates.

In 2016, Pakistan exports to the EU were valued at € 6.173 billion (≈ $1.7 billion USD). That represented a 53.6% increase in export trade since gaining the GPS+ status. The loss of that status would deal the country a severe economic blow, in effect, making it incapable of competing successfully with other South Asian nations.

In light of a previous statement by Pakistani leadership that “gaining access to European markets was the top-most priority of the government,” the EU parliament pressed for action in the Asia Bibi case.

The case was reviewed by three Ministers of the European Parliament, including one from Pakistan. While the Christian Union Party lobbied against extending GPS+ status based “on questions regarding minority rights in Pakistan,” the recommendation to the parliament was to extend the special status base on the country’s ability to demonstrate “full and sincere compliance with 27 human rights conventions.”

Pakistan continues to enjoy the European Union’s GPS+ status. The human rights issue of Asia Bibi is ongoing but remains unresolved.

Comment by Riaz Haq on March 10, 2018 at 4:35pm

#Pakistan total #remittances from #Diaspora up 3.4% in 8 months over last fiscal year, down 14% from #Saudi Arabia

https://tribune.com.pk/story/1655847/2-foreign-exchange-uk-us-contr...

Pakistan received remittances amounting to $1.639 billion in February 2018, up 2.32% compared with $1.417 billion in the same month of the previous year, according to data released by the State Bank of Pakistan (SBP).

Overall, overseas Pakistani workers remitted $12.834 billion in the first eight months (July to February) of fiscal year 2018, up 3.4% compared with $12.411 billion received during the same period of the preceding year.

Remittances play a major role in stabilising Pakistan’s external sector as it largely covers the deficit in the trade of goods account. Nevertheless, in recent times, they have come under pressure due to a global economic slowdown on the back of low crude oil prices.

Country-wise breakdown

In February 2018, Pakistan received $201 million in remittances from the UK, which is 17.5% higher than $171 million that the country received in the same month of the previous year.

Remittances increase 8.72%, amount to $1.724b in Dec

In the first eight months (Jul-Feb) of fiscal year 2017-18, remittances coming from the UK jumped by 23% to $1.786 billion from $1.449 billion in the same period of last year.

The value of the UK pound has gained over 6% against the rupee in the last few months. This is one of the highest jumps shown by any major foreign currency against the rupee in the open market.

Analysts believe, apart from other factors, the increase in the value of any particular foreign currency encourages overseas Pakistanis to send back more money.

Similarly, an increase was also noted in remittances coming from the US as the country received $207 million in February 2018, up 16% compared with $178 million in the same month last year.

Overall, remittances from the US in the first eight months of current fiscal year increased by 12% to $1.712 billion from $1.525 billion.

Pakistan received $332 million in February 2018 from the UAE, up 3.75% compared with $320 million from the same month of the last year.

Remittances from the GCC countries (other than UAE and Saudi Arabia) declined by 11% to $149 million in February 2018, compared with $168 million in the same month in 2017.

Whereas, remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries (combined) during February 2018 increased to $163 million, up 13% compared with $144 million received in February 2017.

Pew Research Center report: The flow of remittances in and out of Pakistan

Overseas Pakistanis living in the European Union (EU) sent back $49 million in February 2018, up 53% compared with $32 million in the same month of last year.

Saudi Arabia left behind

Remittances from Saudi Arabia – the most important source of remittances for Pakistan – have shown declining trends in recent months.

Remittances from Gulf countries, which have historically accounted for the largest share annually, dropped drastically due to a sharp fall in crude oil prices that hurt the region’s economies.

Pakistan received remittances of $348 million from Saudi Arabia in February 2018, down 14% compared with $404 million in the same month of 2017.

Comment by Riaz Haq on March 12, 2018 at 8:23pm

Globalisation Index 2016 (Trade, capital, information and people) : As world became less connected, India fell 16 spots over 11 years; scores lower on trade, FDI

As flows of trade and people fell the world over since the 2008 global financial crash, India dropped 16 spots to 78 (Pakistan 99) from 62 among 140 countries in 11 years , from 2005 to 2015, on a globalisation index brought out by international logistics company DHL.

The Global Connectedness Index 2016, the fourth since it was first released in 2011, prepared by Pankaj Ghemawat and Steven A Altman (both teach management at New York University Stern School of Business, United States) was released on 15 November, 2016.

The authors slotted India in the central and south Asia group along with Georgia, Turkey, Nepal, Pakistan, Armenia, Uzbekistan, Kazakhstan, Bangladesh, Azerbaijan, Kyrgyz Republic and Sri Lanka.

India ranked 133 (Pakistan 137) on depth and 21 ( Pakistan 32) on breadth among 140 countries in 2015.

The index measures the parameters on depth and breadth. Depth evaluates the extent to which countries' international flows are distributed globally or more narrowly focused, while breadth compares countries' international flows to the sizes of their domestic economies.

Trade flows are measured by exports as a share of a country's gross domestic product, capital by foreign direct investment as a share of a country's gross fixed capital and international stock market investment, information by international connectivity and people by share of international tourists and university students and migrants as a share of the population.


http://www.firstpost.com/india/globalisation-index-2016-as-world-be...


http://www.dhl.com/content/dam/downloads/g0/about_us/logistics_insi...

Comment by Riaz Haq on March 12, 2018 at 9:01pm

#Pakistan is About to Get a $7 Billion Capital Infusion and 1,000 New #Garment Plants to Revive its #Textile Industry. #exports #RMG

https://sourcingjournalonline.com/aptma-invest-7-billion-pakistan-t...

Pakistan and its textile sector have been facing challenging times in recent years, owed in part to costs of production increasing at a pace faster than its neighboring competitors, but a new infusion of funds could help get the country back on better footing.

The All Pakistan Textile Mills Association (APTMA) announced that its members have a plan to increase investment in Pakistan’s textile industry by establishing 1,000 garment manufacturing plants with a total of $7 billion in investments, according to Pakistan’s The Express Tribune.

The plan is to set up garment plants near major textile producing cities like Lahore, Sheikhupura, Faisalabad, Kasur, Multan, Sialkot, Rawalpindi, Karachi and Peshawar, with the plants installing half a million stitching machines, which will boost annual production to 3 billion pieces.

Pakistan’s textile industry has experienced decreasing investments over the last decade, as potential investors have been hesitant to make new investment due to high business costs. This has caused the sector to miss out on technological advantages to its competitors.

New investments dropped to more than half a billion rupees ($4.52 million) in 2016-17, compared to 1 billion rupees ($9 million) in 2005-06, the Tribune said citing APTMA. Further, currently about 35 percent of the textile industry’s production capacity was damaged, causing loss of approximately $4.14 billion worth of potential exports.

Once the proposal is implemented, the industry will need an additional 10.3 million bales of raw cotton, 345 million kilograms of manmade fiber, 1.98 billion kilograms of additional yarn and an additional 7.93 billion square meters of processed fiber. However, cotton-producing area and cotton production have decreased 30 percent and 38 percent, respectively, in Punjab since 2011.

Although the textile sector performed poorly overall, readymade garments did show reasonable growth. According to the Pakistan Bureau of Statistics, exports of readymade garments registered 5.55% year-on-year growth against the overall flat growth of the textile sector, which stood at $12.45 billion in 2016-17.

APTMA members has reportedly provided the government with a long list of corrective and conducive policy measure demands in return for their investments, including implementation of long-term policies, like consistent nationwide energy prices, removal of 3.50 rupees (3 cents) per kilowatt hour surcharge on electricity tariff, an extension of the duty drawback scheme for five years and drawbacks to be increased every year by 1 percent for garments (up to 12 percent) and made-ups (up to 10 percent) against realization of export proceeds.

The proposal also suggested the government allow LTFF (long-term financing facility) to indirect exports, Islamic financing and building of infrastructure for garment plants.

Comment

You need to be a member of PakAlumni Worldwide: The Global Social Network to add comments!

Join PakAlumni Worldwide: The Global Social Network

Pre-Paid Legal


Twitter Feed

    follow me on Twitter

    Sponsored Links

    South Asia Investor Review
    Investor Information Blog

    Haq's Musings
    Riaz Haq's Current Affairs Blog

    Please Bookmark This Page!




    Blog Posts

    Ethiopia's First Muslim Prime Minister Makes Peace With Eritrea

    Dr. Abiy Ahmed Ali, a former army officer with a doctorate in conflict resolution,  was elected first Muslim prime minister of Ethiopia by the country's ruling coalition in April 2018. Soon after making history, 41-year-old Prime Minister Ahmed used his conflict resolution skills to make peace with bitter rival Eritrea. The most important immediate benefit of this deal for landlocked Ethiopia is access to Eritrea's Red Sea ports. Both nations can now focus on developing their …

    Continue

    Posted by Riaz Haq on July 13, 2018 at 8:00am

    Pakistan GDP Growth 1960-2017: How Does Pakistan Compare With China and India?

    The latest GDP figures in terms of current US dollars released by the World Bank for 2017 put Pakistan's GDP at $305 billion, India's at $2,597 billion and China's at $12,237 billion.  The World Bank also lists where the gross domestic products of each country in current US dollars stood in 1960.…

    Continue

    Posted by Riaz Haq on July 12, 2018 at 7:25am

    © 2018   Created by Riaz Haq.   Powered by

    Badges  |  Report an Issue  |  Terms of Service