KARACHI: Majyd Aziz, President Global Compact Network Pakistan (GCNP), stated that Pakistan is now giving high priority to economic diplomacy, and in recent times this process has been amplified with the formation of the Special Investment Facilitation Council.
He added that an excellent example of economic diplomacy is the personal initiative and effort of General Asim Munir, Chief of Army Staff. His disclosure at a recent meeting that he has convinced friendly countries to invest over $50 billion is a manifestation of pragmatic economic diplomacy.
Majyd Aziz stated this as the keynote speaker on "Role of Diplomacy in Economic Development", organised by SES Diplomatic Network in Karachi.
Majyd Aziz said that while defining the role of diplomacy, it is important to determine whether it is economic diplomacy, commercial diplomacy, or even corporate diplomacy. Usually there is confusion in Embassies and Consulates regarding economic or commercial diplomacy.
The issue is that normally the Commercial Consul is not a diplomat but from the bureaucracy and may not be proficient to comprehend business realities. He said in the past, he has personally witnessed Commercial Consuls performing PRO duties instead of commercial activities. Despite this, commercial diplomacy is also crucial to protect and increase the economic interests of the country.
He added that economic diplomacy is the use of government resources to promote the growth of the nation's economy by increasing trade, attracting foreign direct investments, signing bilateral and multilateral trade agreements, etc., and also a tool to promote foreign policy objectives including foreign aid and economic sanctions.
Economic diplomacy is imperative in negotiations of free trade or preferential trade agreements because trade and investment promotion represents the cutting edge of economic diplomacy. Pakistan is also facing the threats of energy security, food security and even terrorism security and must be proactive in economic diplomacy.
“Close and serious collaboration between the Ministry of Foreign Affairs and other Ministries, government trade promoting agencies, as well as, with private sector trade bodies, is essential. MOFA should also regularly interact with the private sector so that the dynamics of economic, commercial, and corporate diplomacy are jointly harnessed to achieve any particular objective,” he said.
Majyd Aziz disclosed that in 2007 when he was President of Karachi Chamber of Commerce and Industry, he had invited then Foreign Minister Khurshid Kasuri to visit KCCI and present a lecture on Economic Diplomacy.
Kasuri had stated that this was the first time any Chamber had invited a Foreign Minister to speak on economic diplomacy. He added that as President, he led the first high-powered KCCI delegation to the USA to promote trade and investment, and they visited State and Commerce Departments, Congress, and US Chamber of Commerce in Washington, and also met the Pakistani Diaspora in other cities. This was an example of corporate diplomacy in which none of the delegates promoted personal businesses but focused on economic interests of Pakistan.
Majyd called for completely revamping the system of regulatory permissions, disbanding TDAP, TCP and Board of Investment, and introducing taxation, infrastructure and visa reforms in order to showcase the seriousness of attracting huge foreign direct investment in various sectors, especially agriculture, mining and information technology.
Copyright Business Recorder, 2023
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