Pak-UAE Commercial Diplomacy

Commercial diplomacy stands for further strengthening of economic integration, internationalizing, expanding across borders trade and above all stimulation to national economies. It is a new tool of engagement and creating trustworthy bilateral relations. It is the mother of all types of diplomacies in the new arena of globalization 3.0. It is the sign of economic survival, icon of joint ventures and one of the most important pillars of foreign policy in the world power politics.

11^th Joint Ministerial Commission
Most recently, Pakistan and United Arab Emirates (UAE) being strategic partners held 11^th joint ministerial commission meeting in Islamabad. UAE Foreign Minister H.E. Sheikh Abdullah Bin Zayed Al Nahyan headed the UAE delegation. During his two day stay he met with Prime Minister Mian Nawaz Sharif, President Mamnoon Hussain and Adviser on Foreign Affairs National Security Sartaj Aziz and discussed a wide range of matter relating to trade and commerce, further enhancing of economic ties, prospects of FDIs and joint ventures. Both sides agreed to enhance bilateral economic cooperation and decided to establish Joint Trade Council to promote trade between the two countries.

Commonality Prevails
The deliberations of the 11^th JMC were held in very cordial atmosphere. There was commonality of views on whole range of bilateral political and economic matters of mutual interest. Both countries agreed that the political goodwill that exists between the two sides must be translated into sustainable economic ties. The two countries also decided to hold first meeting of Joint Business Council (JBC) in the first quarter of 2014 either in Pakistan or UAE as well agreed to appoint focal points to discuss establishment of joint committee for consular affairs.

UAE offers Alternative Energy Cooperation
Addressing a joint news conference H.E. Sheikh Abdullah bin Zayed Al-Nahyan said there was huge potential to cooperate in the energy sector, especially the renewable energy and the UAE would be looking at ways and means to develop this sector in Pakistan. Since Pakistan is an energy deficit country and cooperation in alternative energy i.e. solar energy from the UAE would pay its dividends in the days to come.

Base of Pak-UAE Relations
He said relations between the two countries were diverse, encompassing political, economic and cultural dimensions as well as people to people contacts. The UAE minister was appreciative of the role being played by 1.5 million Pakistanis in the development of his country. Replying a question, he said the two countries had developed necessary mechanism for implementation of understanding and agreements for cooperation in different fields.

He said trade figures did not excite him much because the “ambition and potential” was much higher. Focal persons were appointed for cooperation in the shipping sector and a MoU was signed between the Securities and Exchange Commission of Pakistan and Securities and Commodities Authority of the UAE.

Tangible Economic Gains
Adviser on Foreign Affairs and National Security Sartaj Aziz said the two sides have decided to enhance their bilateral trade and investment. He said that “tangible economic gains” had set the stage for expanding the relationship. Mr. Nahyan said the UAE-Pakistan ties were not just about trade and were quite diverse.

Earlier, they co-chaired the 11^th session of the Joint Ministerial Commission (JMC). Sartaj Aziz said convergences on mutually beneficial subjects of the two countries were far more than the so-called irritants. The two also expressed satisfaction over the implementation of decisions taken in the previous JMC.

Main Areas of Joint Ministerial Commission (JMC)

A Huge Trade Delegation
National Security Sartaj Aziz said the UAE foreign minister has come with a big trade delegation (more than 40) which is reflective of the brotherly country’s commitment to strengthen and expand economic relations with Pakistan. The two sides have agreed to translate the immense goodwill that exists between the leadership of the two countries for greater economic cooperation, he added.

Satisfactory Bilateral Trade
The advisor expressed satisfaction that bilateral trade between the two countries has crossed $10 billion mark and the UAE has become the largest trading partner of Pakistan. Responding to a question, Aziz said the Joint Business Council will have its first session in the first quarter of the next year.

A Strong Trade and Economic Partnership
Meanwhile, President Mamnoon Hussain emphasised the need for transforming the existing close and cordial relationship between Pakistan and UAE into a strong trade and economic partnership to the mutual benefit of the people of the two countries.

The president expressed satisfaction that the bilateral trade between the two sides has increased significantly and said that Pakistan was keen to further strengthen and diversify bilateral cooperation in all fields, particularly trade and commerce.The UAE foreign minister was accompanied by ambassador of UAE to Pakistan, Essa Abdullah Al Basha Al Noaimi and senior officials of the UAE Embassy.

Discussing Pak-UAE bilateral relations, President Mamnoon said both countries share deep-rooted, close and fraternal relations. He said the two countries are bound by common faith and cultural affinities. He expressed confidence that the visit of the UAE foreign minister would brighten the chances of further strengthen of our bilateral ties, especially in trade and economic relations.

FTA with GCC: A Game Changer
He said that early conclusion of Pakistan’s a free trade agreement with the Gulf Cooperation Council (GCC) will further boost Pakistan-UAE bilateral trade on one hand and would pave the way for increased commercial activity between Pakistan and the Gulf countries on the other. The President appreciated UAE’s support to Pakistan’s efforts in conclusion of FTA with the GCC.

The president said that the presence of a large number of Pakistanis in the UAE was a manifestation of the strong bonds that existed between the two countries. The President on the occasion also conveyed his best wishes to UAE President Sheikh Khalifa Bin Zayed Al-Nahyan.

Special Status to UAE
Also, in his meeting with the UAE foreign minister Prime Minister Nawaz Sharif said that Pakistan attached special importance to its relations with the United Arab Emirates. The prime minister said the UAE also hosts a large Pakistani community which is making positive contribution to the development of UAE and is sending remittances supporting Pakistan’s economy as well. Joint Trade Council set up to promote Pak-UAE trade. During the meeting, views on bilateral and regional matters were also exchanged.

High Hopes
After the recent official visit of the UAE Foreign Minister H.E. Sheikh Abdullah bin Zayed Al-Nahyan, hopes are high for the further strengthening of bilateral relations in terms of trade and commerce, greater economic integration, cooperation in the fields of energy, renewables, shipping, service sector and the last but not the least, security. Keeping in view the emerging socio-economic, geo-political and geo-strategic irritants in the region and especially in the MENA, further consolidation of bilateral relations and continuous consultations at the highest levels are must to impasse all the red-lines in order to achieve a progressive, productive and prosper future.

Pak-UAE Bilateral Relations
Pakistan and the UAE enjoy extremely close and fraternal relations, founded on deep-rooted cultural affinities, shared faith and traditions, as also geographic proximity and identity of interests. The bilateral relations are based on the strong pillars of commercial and mutual understanding. The foundation of trust worthy bilateral relations was laid by the founder of modern UAE, late Sheikh Zayed bin Sultan Al Nahyan. It has been further strengthened by the President His Highness Sheikh Khalifa bin Zayed Al Nahyan.

UAE has been a major donor of economic assistance to Pakistan. UAE has been appreciative of Pakistan’s contribution to the evolution of key institutions in the Emirates such as armed forces, police, health and education, and has reciprocated in the same friendly manner to the full satisfaction of Pakistan.

UAE, the Biggest Trading Partner
The UAE has emerged as one of Pakistan’s major economic and trading partners. Pakistan remained one of the biggest recipients of UAE aid in the wake different earthquakes, IDP’s of Swat and recent flood devastations. UAE also extended its financial assistance for Pakistan’s development projects and meet budgetary deficits. The UAE is also a major investor in Pakistan’s key sectors like oil and gas, telecommunications, real estate, aviation, banking and energy.

According to an official figure, trade between the two countries is increasing day by day it has surpassed $US 10 billion during 2012-2013. The following given table shows the volumes of bilateral trade between the two countries.

The above table show the balance of trade towards the UAE which should be gradually rectified by changing our trade priorities and, preferences with the help of better commercial diplomacy.

Main Exchange of Commodities (Imports-Exports)
UAE is the biggest re-exporter of many edible commodities. Its service sector provides each and every possible facility to increase the volumes of imports-exports.

According to BOI Pakistan exports to UAE was Rs.44291.74 million in 2012 projecting 11.89 percent of the total exports. It was Rs.33218.89 million in 2011, with 9.38 percent in 2011. It shows that a volume of exports to UAE is one the increase.

UAE the Biggest Foreign Investor
Foreign direct investment (FDIs) is crucial for economic survival and industrial production. It is the effective tool for job generation and value addition. According to the data of SBP and Board of Investment (BOI), the UAE is the biggest investors in Pakistan. Its collective investment in the country has reached to $US 21 billion in 2012-2013. Moreover, in the last decade, UAE merged as the biggest investor in Pakistan. The major proportions of the UAE investments (private & public) came from banking, telecommunication, information technology, ICT, electronics, real estate, agricultural and corporate farming.

Role of UAE Private Companies
A large numbers of the UAE private companies are actively participating in the socio-economic prosperity of Pakistan. These have already elevated the levels of production, service and value-addition. Detail is given below as:

During 2013, Dexterite a UAE-based company signed a Memorandum of Understanding (MoU) with the Board of Investment (BOI) on Monday. It would help in distribution system of electricity and this firm would work out as to what investment was required in our distribution companies and what kind of assistance they could provide to our distribution companies.

Prospective Joint ventures

UAE the Biggest Worker Remittances Country
In the times of national constant budgetary deficits, a worker remittance is the hope of the last resort. According to latest report of the SBP (November, 2013) overseas Pakistani workers remitted an amount of $5,275.61 million in the first four months July to October of the current fiscal 2013-14 (FY14), showing a growth of 6.27 percent when compared with $4,964.21 million received during the same period of last fiscal year July-October FY13.

Every year, the 1.5 million Pakistanis working in the UAE send the valuable remittances reaching to $2.5 billion due to which UAE has now the biggest country of the Pakistani worker remittances in the world. It shows the close trade & commerce relations between the two countries.

UAE at the Apex of Humanitarian Diplomacy
Charity is a noble cause and the UAE has been one of the main countries of this kind of economic development around the globe. It has multiplier socio-economic effects. It makes a comfort zone to all the conflicting communities, groups and people. It brings some delight to all the people living under any deadly military operation or natural calamity around the globe. It is people-friendly and anti-poverty measure which has been one of the main pillars of the UAE foreign policy’s global humanitarian assistance drive. President His Highness Sheikh Khalifa bin Zayed Al Nahyan is a pioneer in humanitarian work around the globe.

UAE Model of Philanthropy
The UAE model of philanthropy is not based on exchange of goods or services. It is totally deviated from the “warm glow” theory and “perfect altruism”. It is based on pure humanity and different humanitarian assistance programs. Charities can nurture local economic growth as well as social capital. According to many latest research studies/reports charities are not just part of the solution to existing Europe’s social problems; they also have a role to play in solving our economic problems too. Moreover, its extended spirits for the wellbeing of underprivileged communities and struggling people with harsh geography, conflicts, and natural calamities are paying dividends.

UAE Generous foreign Assistance Drive’s Multiplier Effects
The UAE does not provide conditional aid or wait for a return. The world has already witnessed the fall-out of the conditional foreign assistance starting the unending game of socio-economic benefits, geo-political maneuverings and above all securing geo-strategic plus-points. World has been divided into communism and imperialism poles resulting misery, political chaos, societal struggle and meltdown of economies. Many countries of Africa, Asia, and even Latin America are the prime examples of conditional foreign assistance. But now UAE has its own unique model of foreign assistance which is based purely on humanity, sacrifice, generosity and above all cooperation. It has been distributing generous foreign assistance beyond the parameters of religion, ritual, race and color. According to UAE official data, Pakistan received Dh354.1 million during 2012.

UAE Global Humanitarian Assistance Programs
The government of the UAE under the visionary leadership of his President His Highness Sheikh Khalifa bin Zayed Al Nahyan has been rigorously engaged in many diversified programs of humanitarian assistance in the different parts of the world and “the UAE’s project to assist Pakistan” (UAE-PAP) is one of the prime examples. It has been gigantic effort “turning tears into smiles”.

UAE government, charities and its people generously sponsored different humanitarian assistance programs around the globe. It extended humanitarian assistance related activities in Philippine, Australian, New Zealand, Palestine, Libya, Iraq, Yemen, Sudan, Bosnia and Herzegovina, Thailand, Afghanistan and the last but not the least Pakistan. UAE is now the second largest non-DAC donor of humanitarian aid since 2004.

Main Pillar of the UAE Foreign Policy
It has been one of the salient features of UAE foreign policy since 1971. The leaders of UAE always stood first to lessen the sufferings of the struggling people by sending teams and relief goods in the country. According to UAE Foreign Aid Report 2010 out of a total Dh 310.7m disbursed to Pakistan in 2010, Dh 258.4m was spent on humanitarian assistance, with the largest tranche Dh 211.4m coming from the UAE Government.”

Significance of UAE-PAP
Upon the directives of H.H. Sheikh Khalifa bin Zayed Al Nahyan the President of UAE, “the UAE-PAP was initiated in January 2011 at a total cost of US$100 million for the reconstruction of infrastructure damaged by devastating floods and natural calamities in Khyber Pakhtunkhwa province, Bajaur and South Waziristan districts of the tribal belt. The projects were started to provide better life to the local people by creating jobs. The said projects focused education, public health, roads, bridges and supply of water treatment plants and networks.

Tools for Sustainable Development
Till now, over 100 projects worth millions of dollars focusing on major areas of social development including health, education, water and infrastructure have been completed which are significantly contributing to the development of these sectors in these areas.

UAE-PAP Development Plans
According to a report of the UAE-PAP, the program includes the building and equipping of 53 state-of-the-art educational projects, 43 schools and 10 colleges. It has worked along a comprehensive redevelopment plans that take into account the harsh geography and the rough weather conditions of the region.

a. Health
In the field of health, the said projects embrace the building, equipping and maintenance of 7 hospitals and clinics in Khyber-Pakhtunkhwa and South Waziristan. Two of these, Sheikh Khalifa bin Zayed Al Nahyan Hospital and Sheikha Fatima bin Mubarak Hospital, are specialised maternity and paediatric hospitals to provide health-care and emergency services for women and children. Moreover, the (UAEPAP) launched the final phase of its seven valuable projects relating to healthcare in the different parts of the country i.e. Bajaur, Khyber Pakhtunkhwa and South Waziristan.

According to its officials these projects would be an icon in the field of health care in these areas. The projects are constructed and completed at a cost of over US$17.1 million. The directorate of the UAE PAP is hoped that it would provide best possible available health care system/facilities to people living in war-ravaged areas of the KPK province. State-of-the-art hospital in Bajaur has now been completed while the other six healthcare centers/units/ hospitals are expected to be completed during the current year 2013. The said projects include four modern hospitals, two clinics and a medical institute in Pakistani remote areas which lack the basic healthcare services.

These projects stand for a noble cause of protecting the children, women and men from the virulent diseases, seasonal infectious illness and natural catastrophes if any. It would provide them first-aid facilities, nursing, surgery, child health care along with all other diversified medications and health care facilities. Special attention is given to old-aged people and infants. Two of these four hospitals, the 100-bed Sheikh Khalifa Specialised Hospital are under construction in Saidu Sharif, Khyber Pakhtunkhwa province, and the 50 bed Sheikha Fatima bint Mubarak Hospital in Shulam area of South Waziristan. The modern medical institute will serve two hundred male and female students. The facilities will be fully-equipped to treat patients in the poor areas.

Moreover, the Sheikh Khalifa Hospital will be first in the Khyber Pakhtunkhwa province having ambulance helicopter. Hopefully, it would enhance medical efficiency by reducing distances and crucial time limits to reach at the doors of the hospital through the facility of ambulance helicopter.

The Sheikha Fatima bint Mubarak Hospital in Shulam features South Waziristan’s first dialysis centre, first preventive medicine centre and first children’s immunization center. It would introduce the concept of healthy living in the people living in these areas where health consciousness is neglected. It would control the occurring of the fatal diseases relating to kidney, liver, gastro, stomach, digestive system, gut and many more.

The 70-bed Bajaur hospital consists of a dialysis centre, an electro encephalograph (EEG) unit, two quarantine units, two operating rooms as well as wards for chest diseases, skin diseases and emergency and outpatient clinics to serve a population of 800,000 people of the underprivileged region. According to medical practitioners, the said hospital would keep the people healthy by taking care of their sinking and dysfunctional hearts. The chest diseases consisting of respiratory system disorder, minor deformities, and of course the inefficiency of the chest wall and muscular action of the intercostal muscles and diaphragm along with obstacles in proper ventilation will be checked thoroughly at the said hospital.

b. Clean Drinking Water
With the aim of providing clean water and protecting people against diseases and epidemics, about 64 drinking water supply projects have been accomplished, 44 of them in Khyber-Pakhtunkhwa and 20 in the South of Waziristan region.

c. Development of Infrastructure
Sheikh Khalifa Bridge has been rebuilt over Swat River damaged by flood. The 330-metre bridge serves 70 thousand persons which represents an architectural icon and a tourist destination with its unique design that resembles Abu Dhabi’s Al Maqta’ Bridge and its historic fort.

Sheikh Khalifa Bin Zayed Al Nahyan Road, funded by Khalifa Bin Zayed Al Nahyan Foundation, is one of the most important infrastructure projects in the South Waziristan. It is a strategic project stretching from the city of Wana to Angor Adda. The 50-kilometers road, with its 5 over passing bridges, is of strategic importance for transportation between Pakistan and Afghanistan.

d. Ramadan Campaign
On the eve of holy month of Ramadan 2013 to implement the directives of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, the supervisory official/team of the UAE’s project to help Pakistan in the country announced a noble initiative, distributing 2,400 tons of food stuff among 30,000 families of internally displaced people (IDPs) living in camps being victims of horrible series of floods and war against terrorism.

According to statement of the said project official/team, the food assistance, worth over $US 1.5 million was distributed among IDPs families in Jalozai Camp, which is the largest refugee camp.

e. Education
Furthermore, “the UAE-PAP” inaugurated another new preparatory school in Kalam village, Khyber Pakhtunkhwa, for further supporting of educational development in the province. It is hoped that the newly established Haryati School will serve 225 male and female students from prep to primary levels. The multi-purpose school building consists of eight class rooms, a computer lab and administration bloc.

Concluding Remarks

Pakistan and United Arab Emirates are strategic partners. Effective commercial diplomacy provides both the countries a win-win position. Bilateral relations would be further enhanced by initiating meaningful policy measures in the fields of energy production/supply, food security, civil aviation and banking & finance. Enhanced cooperation in the fields of alternative energy especially the solar energy would be game changer in the bilateral relations of both the countries.