Pakistan-Japan Relations

Diplomatic relations between Pakistan and Japan were established on April 28, 1952. Both countries started their relationship as free nations. Pakistan was the only major South Asian country that attended the San Francisco Peace Conference in 1951. Pakistan played a significant role from 1947 to 1951 in efforts to lift the Allied occupation of Japan and restore Japan’s sovereignty. Pakistan was described by the then U.S. Secretary of State John Foster Dulles as the ‘tower of strength’ on the Treaty of San Francisco, a peace treaty signed between Japan and the Allies on 8 September 1951 in San Francisco. Unlike many other Asian countries, Pakistan waived war reparations from Japan to help Japan build its economy. Pakistan was among the first few countries to ratify the Japanese peace treaty. Such gestures led these countries to establish diplomatic ties on April 28, 1952. Since then, the Pakistan-Japan relationship has made steady progress and has kept growing to the mutual benefit of both countries. Japan has since remained a cornerstone of Pakistan’s economy as well.

Pakistan was the destination of Japan’s first inaugural trade delegation under the Allied occupation in 1949. Within the first decade of Pakistan’s independence, some 50 multinational Japanese companies had already set up their offices, mainly for trading purposes. The third overseas branch of the Bank of Tokyo, now MUFG Bank, was established in Karachi in 1953, and the metropolitan was also selected to open the second office of the Japan External Trade Organisation (JETRO).

After the United States, Pakistan was Japan’s second-largest trading partner, mainly catering to Japan’s need for raw materials, such as jute and cotton, and fulfilling over 50 percent of their requirement. Pakistan had extended export credit to Japan to facilitate the imports. On the other hand, the Japanese reciprocated by exporting their technological advances to Pakistan. Spindles manufactured in Japan contributed a great deal to the progress of the textile sector in Pakistan, which even today contributes a major portion towards the export proceeds.

Since 1954, Japan has been one of Pakistan’s major bilateral development partners, extending assistance in multifaceted development sectors. This includes Yen Loan Assistance for development projects, grant assistance for social sector projects, and technical cooperation for technology transfer and human resource development. During the 1960s, Pakistan occupied a prominent place in allocating Japanese assistance to the developing world and remained among the top recipients in the region.

No wonder the personal reception and the only one by Emperor Showa of the visiting Pakistani President Ayub Khan in December 1960 at the Haneda Airport became a landmark in Pak-Japan diplomatic goodwill. This visit also paved the way to start an important economic relationship, as the then-Japanese Prime Minister Hayato Ikeda had just commenced the Official Development Assistance (ODA) programme, of which Pakistan became a major recipient. The initial assistance of $20 million in 1961 swiftly reached 80 percent of the total ODA by 1964. The assistance was used for mega projects as well as for industrialisation. Japan is still one of Pakistan’s largest trading partners, with an annual trade of around $2 billion (Rs 560 billion).

Inspired by a common desire to promote and further strengthen the relations between the two countries, both countries signed a cultural agreement in 1957. Japanese Prime Minister and Foreign Affairs Minister Nobusuke Kishi and Pakistani Prime Minister Huseyn Shaheed Suhrawardy represented their respective countries at the signing ceremony. According to the agreement, it was decided that both countries would provide each other with every possible facility to ensure a better understanding of the culture of their respective countries, especially using books, periodicals, and other publications, lectures, concerts, and theatrical performances, art exhibitions, and cultural films. Under this agreement, both countries have initiated several projects and conducted various activities to strengthen their cultural ties.

Then, through its citizens’ determination and hard work, Japan became a modern industrialized nation and started extending Yen Loan Assistance to Pakistan. The first Yen loan was provided to Pakistan in 1961. Since then, Japan has supported infrastructure development in Pakistan, mainly in telecommunications, transportation, and power generation. Through this measure, Japanese products were introduced in Pakistan. Development projects of significance that Japan funded include the Indus Highway, telephone exchanges throughout Pakistan, the Thermal Power Station Jamshoro, the Kohat Tunnel, the Bin Qasim Thermal Power Station, the Construction Machinery Training Centre, and countless others in the social sectors under their Grant Assistance Programme.

Diplomatic relations continued to grow between Pakistan and Japan. Several agreements were inked in the ensuing years, such as the International Postal Money Order Exchange Agreement, the Pakistan-Japan Agreement regarding the Establishment of a Telecommunication Research Centre, and the Pakistan-Japan Plan of Operation for Engineering and Economic Survey for Development of a New Ocean Port at Pitti Creek in Pakistan. The Soviet invasion of Afghanistan and the war of 1980 and Pakistan’s role in the withdrawal of the Soviet forces contributed towards further fortifying Pakistan-Japan ties.

Unfortunately, in response to the nuclear tests conducted by India and Pakistan in May 1998, Japan announced freezing the grant aid for new projects and Yen loans to both countries. However, after President Pervez Musharraf visited Japan in March 2002 and Pakistan’s important contribution to the global fight against terrorism in the aftermath of 9/11, the relations between the two countries entered a new era. Japan had supported Pakistan’s counterterrorism efforts by providing fresh water and fuel to Pakistani vessels participating in the Operation Enduring Freedom-Maritime Interdiction Operation. Sincerely appreciating Japan’s generous technical and financial assistance since 1954, Pakistan issued a special postage stamp in 2004.

Recognising the geopolitical importance of Pakistan and appreciating its role in fighting terrorism, Japan announced further expanding strong collaboration at all levels. Both countries agreed to a renewed, enhanced, and robust relationship and signed a declaration on April 30, 2005. Both sides appreciated the role of leadership exchanges in enhancing bilateral relations in different areas and agreed to continue holding dialogues on politics, security, economy, and joint business.

To extend support to the Pakistani government in its efforts to consolidate democracy in Pakistan and to facilitate social and economic development in the country, Japan hosted the Friends of Democratic Pakistan Ministerial Meeting and the Pakistan Donors Conference in Tokyo in April 2009, which conveyed pledges over $5 billion. President Asif Ali Zardari visited Japan in 2009 and then again in 2011. Both visits provided an impetus for strong bilateral ties.

Coming forward to help Pakistan after the countrywide floods in 2010, Japan announced contributions to the flood relief and rehabilitation efforts at the Pakistan Development Forum, held on November 14 and 15, 2010, in Islamabad, and attended by Isabel Guerrero of The World Bank for the South Asia region. Japan also sent Self-Defence Force helicopters and medical teams to help the flood survivors.

Later, Pakistan expressed its solidarity and support to the government and people of Japan in the aftermath of the devastating earthquake and tsunami that hit Japan in March 2011. President Zardari visited the Japanese Embassy to convey his sympathies and solidarity with the people of Japan.

Pakistan provided two C-130 aircraft loaded with relief goods to Japan. Representing the sentiments of the entire Pakistani nation, the Pakistan Embassy in Tokyo and members of different local outfits of Pakistanis helped the survivors by providing them with food, disposable water bottles, and other goods and voluntarily working in the shelters to provide them relief.

Japan is the third largest economy in the world. It is also a major trading partner of Pakistan and a major donor. Their global imports are more than $800 billion (Rs 224 trillion), with Pakistan’s share at a mere 0.05 percent. Our annual imports from Japan cost $2 billion (Rs 560 billion), whereas our exports fetch a meagre $250 million (Rs 22.75 billion). To bridge this gap, Pakistan needs to move away from the traditional export of raw materials and concentrate more on value-added goods. Pakistan stands among the top producers of cotton, wheat, fish, sporting goods, cutlery, gems, surgical instruments, fruits, dairy products, etc.

Pakistan Japan Business Forum (PJBF), a leading bilateral business forum, acts as a bridge to foster greater business relations.

The Pakistani Embassy in Japan and the Pakistan-Japan Business Forum (PJBF) in Pakistan are available to assist and connect the business communities of both countries. The Pakistani Embassy in Tokyo is actively pursuing the agenda of increasing trade between the two countries and bringing investments into Pakistan from Japan.