Pakistan's great potential: Korea's new blue ocean

By Song Jong-hwan

The general perception of Pakistan is that it's a dangerous country associated with terrorism. The government of Prime Minister Nawaz Sharif who came to power for a third time, after winning the general elections back in May 2013, is carrying out stringent operations to restore peace but the Pakistani Taliban's attacks are not subsiding.

Apart from terrorism, Pakistan is facing other problems like low economic indicators. The low GDP growth rate of 3.6 percent during the fiscal year 2012-2013, national per capita income of $1,368, foreign reserves of only $8 billion, imports of $45 billion with $24.5 billion of exports are a few of the concerning issues. And major share of trade deficit of $20.5 billion is being filled up largely by $13.9 billion through the remittances of overseas Pakistani workers.

However, the majority's vision about Pakistan is positive. The first peaceful democratic transition of government through the general elections of 2013 has given political stability to the country. Prime Minister Sharif is known for his business-friendly policies and in his third term it is clear that he has again focused on giving new life to Pakistan’s economy.

Foreign investment in Pakistan from July to December last year amounted to $502 million. The Karachi stock market ascended an amazing 49 percent last year, large-scale manufacturing and production index rose by 8.4 percent from July to September, 2013. Standard and Poor's, an international credit rating agency, has rated Pakistan's economy as “stable outlook.’’

Earlier, Goldman Sachs, while announcing BRICS as the world's emerging economies, added Pakistan in a group that will follow them. On Feb. 26, U.S. Secretary of State John Kerry, while talking to Sartaj Aziz, national security and foreign affairs advisor to Prime Minister Sharif, said that Pakistan had the potential to become a future economic tiger in Asia.

The reality is that Pakistan has abundant mineral resources such as coal, gas, copper, gold, iron ore and more, and over 108 million low-wage workers aged 18 to 40 comprise 57 percent of the total population. In agriculture production, Pakistan ranks fourth in cotton, fourth in milk, sixth in wheat, sixth in sugar cane and 12th in rice in the world, which shows its growth potential as well.

In addition, Pakistan’s geographical location is very strategic, a connecting gateway to Southwest Asia, Central Asia, China and the Middle East. Its 190 million population, which is sixth largest in the world and 3.6 time bigger than that on the Korean peninsula, makes it a big consumer market.

Before establishment of bilateral diplomatic ties with China in 1992, Korean enterprises entered the Chinese market by sensing its potential despite the fact that communist China was not allowing the remittance of earned profits. In the same way, more Korean companies should come to Pakistan where remittance of 100-percent profit is allowed at least.

Many Korean companies have already entered the fields of chemical, confectionery, steel, infrastructure development and construction, and should enhance their participation in hydro and thermal power development projects, based on the government's declaration to get rid of an energy deficiency by 2017.

Considering the fact that 66 percent of population is engaged in agriculture, it seems necessary for Pakistan to adopt Korea's "New Village Movement.’’

Korea's first high-level delegation, comprised of both ruling and opposition party members and led by the speaker of the National Assembly, paid an official visit to Pakistan on Jan. 30-31. I hope such collaborations between governments, parliaments, peoples and businessmen of our two friendly countries will increase in the years to come. Pakistan will certainly turn into Korea’s new blue ocean.

The writer is the ambassador of the Republic of Korea to Pakistan.