[INTERVIEW] Pakistan capitalizes on culture to 'entice' Korean investors

Pakistani Ambassador to Korea Rahim Hayat Qureshi speaks during an interview with The Korea Times at his residence in Itaewon, Seoul, Aug. 16. / Korea Times photo by Shim Hyun-chul

Seoul encouraged to take first-mover's advantage

By Yi Whan-woo

Pakistani Ambassador to Korea Rahim Hayat Qureshi does not usually list data and statistics other envoys cite when promoting investment in their countries.

Instead, he offers a glimpse of Pakistani culture that can grab potential investors' attention and get them familiar with the country's investment environment.

This was the case when the embassy held the first Pakistan-Korea Culture, Food and Business Forum in July. Over 100 Korean business people participated and learned about Pakistan as the world's sixth most-populous country and its growing middle class of 80 million. Participants also enjoyed traditional cuisine and watched performances.

More Pakistani culture was on show when the embassy organized its Azadi Mela (meaning independence festival in Urdu) on an unprecedented scale on Aug. 12. The event ran throughout the day and featured a dance troupe and handcrafts. Korean traders also were able to meet Pakistan Business Association members from various industries.

The measures come amid President Moon Jae-in's New Southern Policy aimed at curbing reliance on traditional partners such as the United States and China and strengthening ties with Southeast and South Asian countries.

"So overall, we not only expanded the scope of the event in terms of activities, but we also expanded the access people have to Pakistani culture, bringing the peoples of Pakistan and Korea closer," Qureshi told The Korea Times in a recent interview. "There is healthy growth in the relationship. We do hope to attract more Korean investments in Pakistan with our business-friendly and lucrative investment policies."

The interview was at his residence in Itaewon, Seoul, where the reporter was treated to traditional dishes _ samosa, shami kebab and kheer _ as well as green tea and milk tea.

Three embassy staff _ Counselor Muhammad Shafiq Haider, Head of Chancery Asad Abbas and Executive Secretary Lee Jung-a _ accompanied the ambassador and offered supplementary information.

When asked about Pakistan's investment competiveness compared with other South Asian countries, Qureshi said it has many factors "no other country in the world does right now" and a combination of these should be taken into account.

He said Pakistan's advantages included allowing foreigners 100 percent ownership of a business, 100 percent repatriation of profits and income for foreign ownership, domestic demand from a fast-growing middle class estimated to be 80 million and a retail sector that is expected to grow by 50 percent by 2021.

"On the whole, the government's favorable policy side, as well as the economic factors domestically, make Pakistan an extremely lucrative market for investment," Qureshi said.

He referred to Pakistan as "a growing nascent economy" and that Korean companies can take "the first-mover's advantage in many avenues." Lotte Group, Hyundai Motor Company, Kia Motors and state-run companies such as Korea Hydro and Nuclear Power, Korea South-East Power and Korea Water Resources Corporation are already running businesses in the country.

"But other smaller investment avenues, like software house development and university collaborations are also something we are looking for … These are very positive developments and we hope they continue in the coming years," Quershi said.

The ambassador put aside concerns over terrorism, claiming it is "already a by-gone" and this is why Pakistan is drawing foreign investment in all sectors.

For tourism, he said the Gandhara Civilization, which is credited with sending Monk Maranantha in 384 A.D. to spread Buddhism in the ancient kingdom of Baekjae could be a starting point.

In particular, he said the 2017 Gandhara Buddhist Artifacts exhibition at the Seoul Arts Center promoted awareness of the link. Forty Buddhist relics and artifacts from the Gandhara Civilization were taken out of Pakistan for the first time for the event and more than 100,000 people attended.

"Our cultural interaction is centuries old and that can be the root of our tourism interaction in the 21st century," the ambassador said. "We not only have the world's highest mountain ranges and a confluence of the five highest mountains of the world, but also a very attractive historical tourism dimension … We already are seeing great growth in historical tourism to Pakistan from Korea and we hope this continues to grow."

Meanwhile, he attributed Pakistan's status as a de facto nuclear weapons state to the "threat" posed by India and that its case is different from North Korea's.

He welcomed the April summit between President Moon and North Korean leader Kim Jong-un, saying: "It has been Pakistan's consistent position that all relevant parties should pursue the path of dialogue and diplomacy to reduce tensions, refrain from any action that is inimical to peace and stability in the region and work toward achieving a comprehensive solution to the Korean Peninsula issue."

Q&A

1. How would you assess this year's Pakistan-Korea Independence Festival?
- How have you decided to expand the scale of the event compared to previous years?
- How do you think such expansion benefits people from the two countries to learn more about their history and culture and also help bolstering bilateral relations?

The Embassy of Pakistan holds a number of events throughout the year, the Independence Day event being one of the most important. We have been hosting this event in cooperation with Pakistan Business Association because we try to keep this a very social and open event involving Pakistan community. So we had been hosting a musical concert annually previously.

This year we expanded the scope of the activity and involved more Korean civil society, planning an ‘open' event. So this year we made a full day ‘festival', translated as ‘mela' in Urdu. The "azadi mela" (independence festival) was open for everyone, had many musical performances from Pakistanis living in Korea, Korean cultural and dance troupes and also renowned artists from Pakistan performed. So overall, we not only expanded the scope of the event in terms of activities, but we also expanded the access people have to Pakistani culture, bringing the peoples of Pakistan and Korea closer.

2. What is Pakistan's plan in the short and long terms to take the Seoul-Islamabad ties to a higher level? Also, please talk about Embassy's relevant programs.

Pakistan and Korea share extremely friendly ties with absolutely no irritants in our relationship currently. Pakistan has always stood by firmly with Seoul in all times of need and Seoul has responded with warmth and support whenever we have needed it. We recently also opened a resident Defence Wing at the Mission. This was a dimension that was lacking. So we see ties growing in all fields such as political, community, commerce and now Defence.

The Embassy has various programs in all these dimensions. Some of the upcoming events include Joint Trade Committee meeting, Bilateral Political Consultations and participation in the upcoming Korea Defence Expo. So there is healthy growth in the relationship. We do hope to attract more Korean Investments in Pakistan with our business friendly and lucrative investment policies.

3. What is Pakistan's strategy in coping with President Moon Jae-in's New Southern Policy aimed at taking relations with South Asian countries on par with the four shareholders of the Korean Peninsula _ the United States, China, Japan and Russia?
- Does Pakistan plans to invite President Moon or have incoming Prime Minister Imran Khan visit Seoul?

Of course, Pakistan would love to host President Moon on his visit to Pakistan. We sincerely hope that such a visit materializes soon. The new government has only recently been formed so while visits by the new Prime Minister will be planned later, almost all Pakistani Prime Ministers and Presidents have visited Korea on various occasions and there is no reason why that should not continue.

Pakistan is, and hopes to take good advantage of being, part of the New Southern Policy of the current government. In this context, we recently held an Investment Conference where we encouraged Korean companies to take advantage of the opportunities offered in Pakistan. We will continue doing similar programs and also engage with the government at all levels.

4. What makes Pakistan more competitive from other South Asian countries, especially India, in drawing investment from Korea?
- On your Korea-Pakistan Culture, Food and Business Forum 2018 speech, you underscored "Pakistan's young and vibrant population of 200 million, growing consumer demand, as well as a stable economy and improved security" as possible reasons for investment. But India, with the world's second largest population and annual growth hovering around 7 percent, appears to have edge over Pakistan.

It is very good that you ask this because many people are not well aware of the competitive advantages Pakistan has over other countries in the region.

Pakistan brings many factors together in a way that no other country in the world does right now. You have to consider the combination of these traits together. Pakistan is a country which allows for 100 percent ownership of business for foreigners and allows for 100 percent repatriation of profits and income for foreign ownership; the domestic market is not only a massive source of resources in man-power and raw material, but we have a fast growing middle-class which has ever growing consumption needs; so our population is not only a source of supply but also there is great domestic demand; Pakistan's retail sector is estimated to grow 50 percent by 2021, which for the sixth largest population is an extremely encouraging figure. On the whole, the governmernt favorable policy side as well as the economic factors domestically make Pakistan an extremely lucrative market for investment.

5. What do you think are the obstacles, such as concerns over terrorism, that need to be cleared to better attract Korean investors to Pakistan? How does Pakistan try to overcome such obstacles?

The issue of terrorism is already a by-gone. Pakistan did face major problems with terrorism in the last decade but since 2013 Pakistan has over-come the obstacles to this menace. This is why already Pakistan is seeing huge foreign investments in our Economy, in all sectors of the economy from infra-structure to industrial investment. All major Korean conglomerates are investing in Pakistan, with major interest by Hyundai Group and Lotte Group, but also by many smaller traders and individual investors. With a stable and improving Afghanistan, Pakistan's woes in terrorism have subsided to a large extent. What remains to be done now is to bring this to the knowledge and consciousness of people in Korea and internationally. Now the responsibility is on the Korean media to promote the real picture themselves. We hope to partner with media houses like Korea Times to project this and let Koreans know.

6. Are there specific sectors that Pakistan is particularly interested in drawing Korean investment? Also, what are some private and public Korean enterprises that Pakistan specifically want to work with?

As I have already explained, there are many open avenues in Pakistan. We are a growing nascent economy where I think the Korean companies can take the first mover's advantage in many avenues. As I said earlier, naturally the large investments in industry and technology related fields are highly welcome. We are seeing Lotte group and Hyundai/ Kia doing very well from the private conglomerates and many hydro-power and construction companies like KHNP, KOEN and K-Water doing very well on the public sector projects. But other smaller investment avenues, like software house development and university collaborations are also something we are looking for. Already, a Korean University is scheduled to open in Pakistan in first half of 2019. These are very positive development s and we hope they continue in the coming years.

7. What is Pakistan's strategy to promote its tourist attractions in Korea? How do you think Pakistan's Buddhist civilization, including Gandhara art, can help reaching the goal?

Pakistan is blessed in many ways. We not only have the world's highest mountain ranges and a confluence of the five highest mountains of the world ,but also a very attractive historical tourism dimension, such as to places of ancient historical interest like cities of the Indus valley civilization from 3000 B.C. We also have the unique honor of being the origin of Buddhism for the Korean Peninsula. Many of your readers may not know that Gandhara Civilization, which is credited with sending Monk Maranantha in 384 A.D. to spread Buddhism in the Baekjae dynasty, forms the present day regions of northern Pakistan. So our cultural interaction is centuries old and that can be the root of our tourism interaction in the 21st Century. We already are seeing great growth in historical tourism to Pakistan from Korea and we hope this continues to grow. To promote this historical link, we held the first ever Gandhara Buddhist Artifacts exhibition in the Seoul Arts Centre. For the first time, 40 Buddhist relics and artifacts from Gandhara Civilization were transported to a museum outside of Pakistan! more than 100,000 people attended the exhibition. Speaker of the National Assembly, Excellency __ also appreciated and attended the closing ceremony of the exhibit.

8. How can Pakistan's status as a de-facto nuclear power can be justified, given the fact that North Korea's efforts do so was denied by the international community? Do you agree with North Korea that it should retain nuclear knowledge even in the event of denuclearization?

It is important to understand the diametrically different positions that Pakistan and North Korea face on the nuclear front. Pakistan was threatened by a large imposing neighbor. We already fought three wars ('48, '65, '71), and a large territory is still being held by brutal force by India, the territory of Indian Occupied Kashmir. In these circumstances India conducted the nuclear test in 1974! It was only after realizing that Pakistan has no other choice for survival, we started the nuclear program and developed the bomb only much later and tested after India in 1998. Pakistan also has two very important responsible embargos in place: all our sites are completely and voluntarily under IAEA safeguards and verification, and also we have a complete embargo on further testing since our first and only test in 1998. It goes to show that we have maintained the nuclear option only as a Defence-oriented survival requirement. Pakistan is a responsible nuclear weapon possessor State.

On the other hand, North Korea does not possess the kind of threat that India was posing for Pakistan. If anything, India in a way, is the North Korea of South Asia, for introducing Nuclear weapons in the region. Pakistan did not include strategic weapons into the South Asian equation. So India needs to stop the mindset of conflict to bring peace in South Asia and Pakistan and the rest of the world will not need to feel threatened by a nuclear South Asia. As a matter of principle, Pakistan does not believe that the world should be threatened by such inhumane weapons and we hope that one day the world comes to peaceful resolutions of disputes through dialogue instead of using force, such as India is doing in Kashmir.

9. How can Pakistan, as a Muslim country, help easing Islamophobia in Korea as seen from the latest refugee crisis involving Yemenis in Jeju Island?

Most Koreans appear to be quiet unaware of the fact that Korea is home to more than 13 thousand Pakistanis. They are a well-integrated part of the Korean society and economy. They contribute their fair share to the Korean development and I hope that continues. Pakistanis in Korea do not face any hardships socially and find Koreans very welcoming and hospitable. Pakistanis are also working as volunteer workers in Kroean police and immigration departments to assist other foreigners in Korea. Overall we have a very positive community relationship.

It is this social and general interaction which I think is the best source of removing misunderstandings and bridging the gaps between peoples and cultures. Pakistan and Korea people to people interaction is growing and creating the right kind of good will for both countries in both the places.

10. What are other topics that you would like to share with The Korea Times readers?

You may like to share personal details like the fact that you chose to come to Korea over many other options because of the popularity and importance of Korea, and any unique food or places that you have enjoyed in Korea or particularly like about Seoul. Also add that my family has travelled the world but has truly loved the peace and comfort of Korea and the politeness of Korean people.

Also wish Korea the best in the improvement in relations with DPRK and hope for peace on the Korean Peninsula. Pakistan stands with South in all times of need.

Pakistan welcomes the historic summit between President Moon Jae-in and Chairman Kim Jong-un of North Korea Panmunjom on April 27, 2018 and hopes that it would lead to lasting peace, prosperity, stability reconciliation and cooperation between the two Koreas as well as in the region.

Pakistan has always encouraged the DPRK and ROK to resume meaningful negotiations and supported all efforts for smooth reunification of the Korean Peninsula including the two summits between North and South Korea in June and 2007. It has been Pakistan's consistent position that all relevant parties should pursue the path of dialogue and diplomacy to reduce tensions, refrain from any action that is inimical to peace and stability in the region and work toward achieving a comprehensive solution to the Korean Peninsula issue.

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