Newsletter No. 536
News-Analysis
March 5, 2007

 

The following is a round-up of some recent, small stories on Japan-Pakistan relations.

JAPAN-PAKISTAN TAX TREATY NEGOTIATIONS

It was previously reported that negotiations to revise the 1959 bilateral tax treaty would be held in Tokyo between February 27th and March 3rd. However, I have not come across any stories that throw light on what may have occurred at those negotiations. The Japanese press doesn’t seem very interested, and the more-attentive Pakistani press may not have many active correspondents in Tokyo.

The last update that I am aware of dates back to a report in The News International of February 23rd. This report colorfully described the 1959 agreement as the “old and pathetic tax protocol,” and suggested that the banking and insurance industries were the main focus of the talks. Although not stated directly, it seems that Japanese banks may be trying to enter the Islamic Banking industry in Pakistan.

In any case, we will report more whenever new information becomes available.

“JAPAN WEEK” HELD IN PAKISTAN

From February 26th until March 4th there were various demonstrations of Japanese traditional culture in Pakistan as part of “Japan Week” -- an event that has been held annually since 2000 to boost Japan-Pakistan cultural cooperation. Among the demonstrations was a calligraphy exhibit in Islamabad with a “message of peace.” Japanese Ambassador Seiji Kojima attended this event and remarked that, “This tradition [of calligraphy], among others, enabled Japan to become one of the modern countries with a very high literacy rate.” (The CIA World Factbook estimated that Pakistan had a 48.7% literacy rate in 2004.)

Aside from calligraphy, the Japan Week events also included Judo demonstrations by Pakistan Judo Federation Secretary Mehmood Naveed, as well as various performances of Japanese music, songs, tea ceremony, and ikebana.

Photo: Asian Art Now 2007 Exhibition in Islamabad
Source: Daily Times (Pakistan)

At Islamabad’s National Art Gallery there has been an exhibit called “Asian Art Now 2007” which has featured 36 pieces by 19 different Japanese contemporary artists. An 18-member delegation of artists from the Asian Cultural Exchange Association Japan was present at the opening of the exhibition, and they later traveled to Peshawar.

PAKISTANI AMBASSADOR IN TOKYO URGES NATIONALS TO BE ON GOOD BEHAVIOR

The Pakistani press carried a report in which Ambassador Kamran Niaz encouraged Pakistani nationals in Japan to “forge unity” and “promote the national interests” of their country. It is not clear whether he was referring to any specific event or issue. There were more than 8,000 Pakistani citizens living in Japan in 2004, aside from any temporary visitors.

COMMENTARY

From Michael Penn of the Shingetsu Institute on March 6, 2007:

Wouldn't you know it? I waited a couple of extra days to see if any news about the Japan-Pakistan tax treaty negotiations would emerge, and then the day after I publish my newsletter, a story comes out!

The Daily Times of Pakistan is now reporting that the negotiations in Tokyo went well. The two parties have agreed to hold a second and final round of negotiations in Islamabad in May. They are expected to conclude the new bilateral tax agreement at that time.