Business-savvy Pakistani Prime Minister Nawaz Sharif, who was elected only four months ago in a landslide general election victory, may be the best hope to make up for what has been lacking between Turkey and Pakistan, two close friends and allies in a tough neighborhood.
That is the absence of a strong and sustainable trade and investment portfolio between the two. So far, successive governments on each side have unfortunately failed to realize much of the potential that exists in terms of trade, business and investment. I was encouraged to see that Mr. Sharif has really reflected on that shortcoming and he suggested means of overcoming it during an interview I had with him on the eve of his first visit to Turkey since the election.
Mr. Sharif, the successful industrialist-turned-politician, won the popular vote in the May 11 elections and formed a government with the help of independents who joined his side. Though he served two non-consecutive terms in the 1990s for two years on each occasion, he faced constant political fighting amid military interference and judiciary activism. On the Turkish side, the 1990s were lost years as well, with political bickering that at its peak led to the forceful ouster of a democratically elected government by the military in 1997, the fourth time in the history of the Turkish Republic. This time, Mr. Sharif's conservative government may have found a better partner on the Turkish side, led by successful politician Prime Minister Recep Tayyip Erdoğan on the center-right.
In the interview, the Pakistani prime minister indicated that political relations between the two countries are excellent, to the extent that he did not hesitate to describe it with the “one nation, two states” formula. I was in Pakistan in the last couple of days to see that oft-cited remark come alive during friendly encounters in Islamabad, Lahore and Multan. I experienced my share from what he called “a huge reservoir of goodwill and affection that flows from one country to another.” Yet as Mr. Sharif rightly pointed out, we have a long way to go to translate these excellent political relations into a tangible and robust commercial and economic relationship. For that, I suppose we need to strive better with a fresh perspective.
In fact, looking at Turkish Statistics Institute (TurkStat) data, trade figures between Turkey and Pakistan have been, to my dismay, on a declining curve since 2011. The trade volume, which favors Pakistan, was $1.1 billion in 2011 before dropping to $831 million in 2012, a loss of almost a quarter of its 2011 value in one year. The declining curve is also true for the last seven months of the year, the latest available date from the government agency. Trade volume dropped by 16 percent in January-July data this year over the same period of last year, from $500 million to $420 million. It is clear that something must be done to stop the fall, let alone boost figures. With the relatively big size of their economies, Turkey and Pakistan ought to do much better, yet we struggle to keep our heads above water.
Having set economic development as one of his government's priorities on his to-do list, Mr. Sharif has come to Turkey with a loaded agenda, accompanied by a business delegation to make a sales pitch on increasing trade and investment. He will use the intergovernmental meeting sort of half way through a joint cabinet gathering dubbed a high level council meeting as an opportunity to propose what he called “institutional mechanisms, which will provide a strong platform for further cementing economic ties.” If Mr. Sharif can deliver on that with the help of Turkish colleagues, then there may be hope. The fact that Mr. Sharif's party led Punjab (in fact, his brother is the chief minister) in delivering success stories such as the Metro Bus System and Solid Waste Management Project in Lahore and a wind energy project in Sindh, all built by Turkish companies, provides stimulus for our hopes to have stronger business ties.
For me, I suppose the most significant remark he made during the interview was related to the emphasis on his government's number one priority, which is education. “Pakistan needs a new framework for social change to provide equal opportunities and social justice to everyone, eliminate exploitation of the poor and harness its human resource potential. With knowledge becoming the key driver of socio-economic development in the 21st century, education is our number one national priority,” Sharif explained. For that, he is looking to Turkey, among others and wants to transfer best practices and experiences in education to have Pakistani kids excel in technical skills and science. He knows that a quality education will lay the foundation to generate growth and job creation, while helping him and future Pakistani leaders fight all sorts of social and economic malaise.
What Turkish entrepreneurs joined by Pakistani counterparts have accomplished is that they were able to create incubation centers for very talented new generations that speak the language and understand the culture of both countries. In every sense of the word, they have definitely strengthened people-to-people connections. The stories of Olympiad medal winners in science and other competitive fields that were on display in the hallways of each and every Pak-Turk school -- girls and boys alike -- is a testament to this major accomplishment that has obviously had the backing of successive Pakistani governments. While meeting with officials, including the education minister, at the personal residence of the Sharif family, Raiwind Palace, located in Jati Umra on the outskirts of Lahore, I sensed that both Mr. Sharif and his brother Shahbaz, the chief minister of Punjab, are particularly interested in seeing these schools flourish.
There is no doubt that this education campaign has a trickle-down impact on lower income families as well, providing social mobility and empowering younger generations. For example, I was particularly impressed by the housing complex in the Multan area of Punjab province built by Kimse Yok Mu, a leading Turkish charity and relief organization, in cooperation with its German-Turkish counterpart, Time to Help. The $7 million model village, which has some 300 fully refurbished houses, is certainly just a beginning, because the devastating flood in 2010 affected at least 20 million Pakistanis, but it provided encouragement for local residents and offered a glimmer of hope for many others. More importantly, the village, named after the legendary Allama Mohammed Iqbal, has a modern school for the children of town residents, something the Turkish volunteers said they would run and invest in to empower the children in this impoverished region.
The full return on investments in education is definitely not a short-term prospect but its positive results will be the most enduring if done correctly. In the Pakistani context, the cascading impact of educational investments by Turks has already been felt in a short span of the time. The endeavor has pushed some in the business community in Pakistan who originally came together on an education drive to set up business and trade advocacy groups as well. Many Turkish and Pakistani businesspeople have now established business associations in Islamabad, Karachi and Lahore with the expectation of more to follow suit. There are already some 200 members in these associations that seek opportunities to enhance the trade and investment figures of Pakistan, with Turkey in particular and the world in general.
Therefore, education, trade and development goals are closely linked to one another. They are also important for Pakistan in its fight against terrorism and corruption. Well-educated Pakistani youth will be less prone to the exploitation of radical movements and less likely to fall into the trap of corruption. Sharif's government is very keen on education and plans to invest heavily in that area. Albeit at a small scale, Pak-Turk schools are making a difference on the ground and helping contribute to what Mr. Sharif intends to accomplish.
Published on Today's Zaman, 16 September 2013, Monday
