Pakistan-Qatar Commercial Diplomacy

Ours is the age of globalization 3.0 where commercial diplomacy plays very important role in achieving the desired goals of socio-economic development. Rigorous commercial diplomacy promotes trade & commerce activities, speeds-up bilateral trade volumes and widens-up the scope of joint ventures and accelerates the inflows of foreign direct investments (FDIs). Pakistan and Qatar are also gearing up their bilateral relations with the help of commercial diplomacy.

Most recently, Qatar Emir Sheikh Tamim Bin Hamad Al Thani has promised to make investment in various sectors of development in Pakistan besides helping Islamabad end its energy crisis. In order to further strengthening of bilateral relations, promotion of commercial ties and cooperation and coordination in the fields of energy Punjab Chief Minister officially visited to Qatar.

It was agreed in the meeting to promote relations between Pakistan and Qatar and expand economic and trade cooperation between the two countries.

Statement of Emir of Qatar and Energy Cooperation
The Emir of Qatar said that he was deeply interested in progress and stability of Pakistan. He further said that besides meeting gas requirements of Pakistan, Qatar would also cooperate in agriculture, power generation and skilled manpower sectors. The Emir of Qatar further said that his country was fully aware of the problems being faced by Pakistan in the energy sector and would extend maximum cooperation for ridding Pakistani brethren of the power shortage.

Import of Human Resources from Pakistan (Skilled & Experienced)
The Emir of Qatar said that Qatar was ready to welcome skilled and experienced people from Pakistan in various sectors. The Emir of Qatar further said that his country highly appreciated recent efforts made by Prime Minister Nawaz Sharif for strengthening the Pak-Qatar friendship.

Punjab Chief Minister Appreciated Qatar Energy Cooperation
Punjab Chief Minister Sharif said that Qatar was extending commendable cooperation to Pakistan in resolving the energy crisis and it was hoped that Pakistan would be able to overcome the loadshedding with the help of its friendly countries. He especially thanked the Emir of Qatar for extending support to Pakistan at international economic forums.

Meeting with Qatar Foreign Minister: An Era of Pak-Qatar friendship
Later, Sharif met Foreign Minister of Qatar Dr. Khalid Bin Mohammad Al-Attiyah. The foreign minister said it was a matter of satisfaction that a new era of Pak-Qatar friendship had started and its positive impact would soon be visible in both countries. He said that cooperation between Qatar and Pakistan would further increase in different sectors in future. He said that there was a vast scope of cooperation between Qatar and Pakistan in energy, human resource, manpower, agriculture and other sectors. He said that Qatar was fully aware of Pakistan’s importance and its role in the region and the government, leadership and the people of Qatar wanted to see Pakistan a prosperous and developed country.

Qatar Investment Authority (QIA)
Qatar Investment Authority, an investment institution of Qatar government, has expressed willingness for huge investment in various national development projects in Pakistan. The investment of billions of rupees by Qatar will be made in energy generation, gas supply and other sectors.

Qatar Investment Authority (QIA) made this announcement during a meeting with Punjab Chief Minister Muhammad Shahbaz Sharif and his entourage. It was decided in the meeting that a high-level delegation of Qatar Investment Authority will visit Pakistan during December 2014 to discuss Qatari investment. It may be mentioned that work on the development projects of billions of dollars is continuing in various countries of the world including Turkey, Middle East and Europe with the capital of Qatar Investment Authority. The Chief Minister said that Pak-Qatar relationship is taking new dimension and the decision of investment of billions of rupees by Qatar government will usher a new era of foreign investment in Pakistan.

Qatar’s Prime Minister
Chief Minister Punjab Muhammad Shahbaz Sharif also met Prime Minister of Qatar Sheikh Abdullah Bin Nasir Khalifa Al thani in Doha. Promotion of bilateral relations and prospects of investment were discussed during the meeting.

Stability of Pakistan
Talking to Punjab Chief Minister Muhammad Shahbaz Sharif, Prime Minister of Qatar said that stability of Pakistan is the stability of Qatar and Qatar wants to see Pakistan a peaceful and prosperous country. He said that Qatar government will welcome manpower of Pakistan open heartedly.

Pakistan: A Land of Vast Opportunities of Investments
Talking to Prime Minister of Qatar, Shahbaz Sharif said that vast opportunities of investment exist in Pakistan. He said that the situation in the region is improving and the relations with Afghanistan have improved. He expressed the hope that Pakistan will soon overcome terrorism.

Senior officials of Ministry of Petroleum and heads of investment companies of Qatar held meetings with Chief Minister Punjab Muhammad Shahbaz Sharif in Doha in which besides cooperation in energy sector, increasing manpower from Pakistan to Qatar came under discussion. Prospects of investment in various sectors in Pakistan particularly Punjab were also discussed in detail. The investors of Qatar expressed their interest in investment in agriculture, energy and other sectors in Pakistan.

Assurance of Qatar’s Officials
Qatar officials assured that Qatar will extend cooperation to Pakistan in various sectors of national development and Qatar is ready to make Pakistani manpower part of development process in Qatar. They said that the role of Pakistani manpower and overseas Pakistanis cannot be forgotten in the national development of Qatar in early days and assured to promote cooperation in various sectors with Pakistan in coming days. Muhammad Shahbaz Sharif said that all reservations of Qatar will be removed with regard to expertise of manpower and security matters.

Facilities on Priority Basis
Chief Minister of Punjab said that government is providing facilities to the investors on priority basis and investors of Qatar can benefit from investment opportunities in various sectors in Punjab. The Chief Minister said that a friendly atmosphere has been created for investment in Punjab and all facilities are being provided to investors under one roof. He said that the project of construction of LNG terminal in Karachi is being completed speedily and will be completed in a record period.

Pakistan always urged the investors of Qatar to take advantage of upcoming business opportunities in Pakistan and invest in various sectors especially the energy and manufacturing sectors.

Nature and Scope of Pak-Qatar Bilateral Relations
Pakistan and Qatar are blessed with deep-rooted and historical multi-dimensional relations based on cultural affinities, shared traditions and values, geographical proximity and identity of interests. Both the countries have traditionally been supportive of each other at the international fora. The warm, cordial and time honoured relations that so happily exist between the governments and the people provide an excellent footing for further enhancing bilateral economic cooperation.

Importance of Qatar’s Strategic Position in Middle East
Pakistan attaches high importance to the regional and strategic position of Qatar in the Middle East and appreciated the leading role it was playing in the Muslim world today. Pakistan keens to further strengthen and diversify these relations in all fields. Pakistan cherishes its historic brotherly relations with Qatar and wants them to be taken up to new heights through greater economic integration, healthy trade & commerce relations and joint ventures.

Mutually Beneficial Economic Partnership
Pakistan and Qatar agree to transform their relations into mutually beneficial economic partnership. It is hoped that confidence that mutually beneficial economic, commercial and investment cooperation between the two countries will further bring the people of two countries closer. Pakistan invites Qatar’s investment in the energy, infrastructure and agriculture sectors.

Free Trade Agreement (FTA)
Qatar assures it would continue to support Pakistan’s desire to have a Free Trade Agreement (FTA) with the GCC countries. Qatar assures its full support to Pakistan’s efforts in facilitating peace and reconciliation process in Afghanistan.

Construction of a Model Village
Government of Qatar constructed a model village in Rahim Yar Khan District comprising 200 houses of two rooms each, two schools, playground, mosques and a shopping area. It was constructed to rehabilitate people displaced by the recent floods.

Importance of Pak-Qatar JMC
Different Pakistan-Qatar Joint Ministerial Commission (JMC) provides an excellent opportunity to enhance economic and trade relations between the two countries. It is a useful institutional framework for an in-depth review of existing economic relations and identification of new opportunities for mutually beneficial cooperation in various fields.

Joint Business Council (JBC)
Both sides have already resolved to activate Joint Business Council (JBC) established because activation of JBC will promote interaction between business communities of both countries.

Joint Investment Company
The Pakistan side also desires to establish a Joint Investment Company with Qatar. The Qatari side agreed in principle with the proposal and requested for a draft Agreement on joint investment company for their consideration.

Diverse Issues & Projects
Both countries have already thoroughly discussed diverse issues, including joint development of hydropower sector, identification of sources of financing, exploration of investment opportunities in energy sector, rehabilitation of existing hydropower plants and infrastructure development.

Prospects of Joint Ventures
(a) Renewable energy cooperation: Especially in solar, wind and hydro-power projects. Petroleum and Energy; (i) both sides shared information on the latest developments in the energy sector; (ii) the Pakistani side shared information on the investment opportunities in Exploration & Production (E&P) joint venture opportunities in offshore and onshore unconventional and conventional areas; (iii) joint investment in downstream refinery and petrochemical projects; (iv) joint international E&P investment projects; and (v) Independent Power Projects (IPPs).
(b) Software technology parks: ICT cooperation would be game changer between both the countries.
(c) Cotton: It would provide win-win position to Qatari investors especially after the grant of GSP+ status to Pakistan because textile benefits are enormous and diversified.
(d) Oil & Gas exploration: It provides comparative advantage to Qatar which needs to be further strengthened.
(e) Agriculture & Food security: It would be one of the emerging problems in Qatar which would be resolved with the help of Pakistan.
(f) Tourism: Mutually benefit for both the countries.
(g) SMEs: Mutual cooperation would be game changer in the days to come.
(h) Chemicals and infrastructure sectors: It is vast sector which needs to be explored.

A Way Forward
Close liaison between the services industries of Pakistan and Qatar in terms of exchange of technology, movement of capital and the skilled manpower would be mutually beneficial for both the countries. Pakistani exploration and production companies in oil and gas sector desire to join hands with the Qatari companies for investment in upstream and downstream projects in Pakistan.

Both countries have already signed several agreements and memoranda of understanding. The two sides reviewed bilateral relations and means of strengthening them in several domains and discussed a set of other regional and international issues of mutual concern.

Bilateral trade is much below the existing potential of economies and it is hoped that the Pak-Qatar Joint Business Council would act as a catalyst to promote interaction between the private sectors of both countries. Increase in joint ventures would reduce the balance of trade between the two countries in the days to come.

Worker Remittance & Investments from Qatar

IDEAS 2014
IDEAS 2014 was held in Pakistan where H.E. the Chief of Staff of the Qatari Armed Forces Major General (Pilot) Ghanim bin Shaheen Al Ghanim visited and attended the opening of International Defense Exhibition and Seminar (IDEAS 2014) in Pakistan. He praised highly about the defence industry of Pakistan.

Qatar National Development Strategy (2011-2016)
Qatar National Development Strategy (2011-2016) indicates that development mainly relies on four pillars, one of them being the sustainable economic prosperity. It provides the path which helps to achieve prosperity and to avoid economic imbalances and unrests. It guarantees economic stability which attracts inflows of FDIs.

Qatar’s macro-economy is stable and sustainable due to which the State of Qatar successfully mitigated the negative effects of global financial crisis. Its national vision and development strategy is capable enough to absorb any regional or global crises and support a stable environment that will play a crucial role in the expansion and prosperity of the non-hydrocarbon sectors.

Qatar National Vision 2030 (QNV)
Guided by the forward-looking policies of HH the Emir Sheikh Tamim bin Hamad al-Thani and in compliance the Qatar National Vision 2030, Qatar aims to be an advanced society capable of sustaining its development and providing a high standard of living for all of its people” for generations to come.

Qatar: Model of Sustained Economic Development
Qatar is the model of sustained economic development. It is icon of socio-economic prosperity. Qatar National Vision 2030 builds a bridge between the present and the future. It envisages a vibrant and prosperous country in which there is economic and social justice for all, and in which nature and man are in harmony. It is a welfare state which cares about its population.

Qatar’s National Vision (QNV) has emerged from intensive consultation across Qatari society. It is based on the guiding principles of Qatar’s Permanent Constitution. It reflects the aspirations of the Qatari people and the resolve of their political leadership.

Qatar: Land of Unmatched Prosperity
Comprehensive development is Qatar’s main goal in striving for the progress and prosperity in the days to come. Qatar enjoys a period of unmatched prosperity, with extraordinary economic progress being obvious in the increasing standard of living of its people. Major achievements in economic, human, political and social developments continue to occur.

Qatar: Land of Wonders & Corporate Excels
Qatar has now become the land of wonders and corporate excels. It is one of the ideal homes of lavish hospitality. It reflects the true spirits of harmony and tolerance. Future of Qatar’s macro-economy depends on further diversification of economy, energy resources, widespread of social development, foreign direct investment, SMEs and above all human resource development.

Concluding Remarks
Pakistan attaches great importance to its close and cordial relations with Qatar and wishes to further strengthen cooperation in all fields of mutual interest including trade and defense. The government of Pakistan hopes that Qatari Investment Authority (QIA) would invest in different sectors of Pakistani economy by taking advantage of its lucrative business and investor friendly policies.

It is strongly recommended that both brotherly countries should continue to explore mutual avenues for future cooperation for further enhancing the existing volume of bilateral trade.

Both sides already agreed that there is a huge untapped potential in enhancing cooperation in the areas of energy, banking and finance, trade and commerce, labour, human development and cultural exchange, education, science & technology and scientific research and food processing which needs to be streamlined and speed-up.

Pakistan’s government has already requested to Qatari government to consider financing the Neelum-Jhelum hydro power project currently under construction in Pakistan. Both sides also noted with satisfaction the positive development relating to Hassad Food”s investment in Pakistan where the upcoming harvest of Basmati rice will be exported to Qatar shortly. Hassad Food expressed readiness to expand its investment in the future based on such positive experience.

According to central bank of Qatar (2014) Qatar is the world’s top liquefied natural gas exporter. Qatar’s economic growth accelerated to 6.5 percent in 2013-14 as a pick-up in construction and inflows of foreign workers ahead of the 2022 soccer World Cup offset easing oil production. Its diversification of national economy is now matured and paying its dividends. Its non-hydrocarbon sector could be worth more than half of the country’s GDP by 2015. Driven by mega infrastructure projects for the FIFA World Cup 2022 in an estimated $200bn-plus spending drive, the share the non-oil segment in Qatar’s GDP is projected to grow from 49 percent in 2014 to 57.2 percent by 2016.

Guided by the strategic oriented policies of HH the Emir Sheikh Tamim bin Hamad al-Thani and in compliance the Qatar National Vision 2030, Qatar aims to be an advanced society capable of sustaining its development and providing a high standard of living for all of its people” for generations to come.