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Japan-Pakistan Relations
Diplomatic Relations 1950
-- Japan Establishes Karachi Office
Signed
1957.05.27 -- Cultural Exchange Agreement
Japan and Pakistan became important trade partners very soon after Pakistan’s independence and Japan’s reemergence from military occupation. This primarily related to Pakistan's cotton and Japanese textiles. However, after that promising beginning, the importance of the Japan-Pakistan relationship waned. Japan began to provide economic assistance to Pakistan from an early point. In 1954 the first technical aid began. Yen loans began to be issued in 1961. Finally, grant aid began in 1970. Indeed, the late 1960s was a period of promise in terms of the expanding economic links between the two countries. JICA opened its first office in Pakistan in April 1983. The early decades of Japan-Pakistan relations were focused on trade and Japanese aid. Unlike many other aid-giving nations, Tokyo did a good job balancing its efforts between West and East Pakistan. During the Bangladeshi war of independence in 1971, Japan maintained a cautious and neutral position. However, the reoccurrence of wars and political instability inside Pakistan cooled Japanese interest, and the bilateral relationship never really met its potential. After the Soviet occupation of Afghanistan in 1979, Japan modestly stepped up its support to Pakistan in line with its support for US policy and the fight against Soviet Communism. The bilateral relationship remained distant but broadly on track until May 1998 when the Pakistani nuclear test chilled the Japanese attitude even further. Most measures of economic aid were then suspended. After the events of September 11, 2001, and the decision of the Musharraf Administration to strongly back US “antiterrorism” policy in Afghanistan, Tokyo’s view shifted once again. Direct aid was resumed, and the relationship began to become more intimate. In 2005, the Japan-Pakistan link remained complex. Although the were elements of cooperation through the campaign in Afghanistan, the MSDF mission in the Indian Ocean, and through Japanese aid, there were also Japanese concerns about Pakistani nuclear weapons, support for political Islam, and its loose alliance with China that had endured since the 1960s.
1990
-- Prime Minister Toshiki Kaifu Visits Pakistan
Japan and Pakistan became important trade partners very soon after Pakistan’s independence and Japan’s reemergence from military occupation. Pakistan sold raw cotton to Japan in the 1950s and 1960s from which the Japanese created textiles that were crucial to postwar development. However, after that promising beginning, the importance of the Japan-Pakistan economic relationship waned.
Pakistan’s exports to Japan constituted 6.8% of its total exports in 1992-93, which has declined to 1.1% in 2003-2004. Pakistan’s imports from Japan were 15.9% of its total imports in 1992-1993, which has declined to 6.0% in 2003-2004. However, Japan’s exports to Pakistan have improved since 2001 as the economic recovery in Pakistan gained momentum. (2) Japan-Pakistan Trade Items, 2003
Source: Trade Statistics (Ministry of Finance, Japan)
Pakistan’s major imports from Japan are motor vehicles and parts, and power generators. Owing to the modernization and the improvement of the production base of the textile industry, Pakistan’s imports of the textile machinery from Japan in 2003 amounted to US$117 million, as against US$20.6 million in 1999.
(1) Flow of Japanese Investment to Pakistan, 1993-2003
Source: State Bank of Pakistan
A big surge of investment was observed in 1995-1996 in Independent Power Producers (IPP) projects. The Japanese investment recovered and increased by 7% during the period from 2002-2003 to 2003-2004 due to the increase of the investment in the automobile sector. (2) Major Sectors of Japanese Investment in Pakistan (FY03/04)
Source: State Bank of Pakistan
Major sectors of Japanese investment are joint venture projects, mainly in the automobile sector. For example, Pak-Suzuki Motor (Suzuki), Indus Motor (Toyota), Honda Atlas Cars (Honda), Gandhara Nissan Diesel (Nissan Diesel), and Hino Pak Motors (Hino) represent some of the major domestic brands.
Mitsuo
Horiuchi
Japanese
Embassy in Islamabad
Associated
Press of Pakistan
54
-- Pakistani Prime Minister Aziz to Visit Japan 2006 Newsletters 153
-- Japanese Foreign Minister Aso’s Visit to
Pakistan 2007 Newsletters 482
-- More Talk about Expanding Japan-Pakistan Trade
/ Toy Diplomacy
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