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. 

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Comments

Riaz Haq said…
EU Parliament Grants Pakistan Special Trade Status Despite Human Rights Warnings

MARCH 2, 2018

https://missionsbox.org/news/eu-parliament-grants-pakistan-special-trade-status-despite-human-rights-warnings/

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.
Riaz Haq said…
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-became-less-connected-india-fell-16-spots-over-11-years-scores-lower-on-trade-fdi-4354109.html


http://www.dhl.com/content/dam/downloads/g0/about_us/logistics_insights/gci_2016/DHL_GCI_2016_full_study.pdf
Riaz Haq said…
#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-textile-industry/

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.

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