Foreign Policy statement

Advisor to the Prime Minister on Foreign Affairs Sartaj Aziz while winding up the debate on a motion in the National Assembly stated that the government's foreign policy is based on non-interference, strengthening trade relations, promoting trade not aid and reflecting the country's internal situation. Few can fault the four tenets laid down by Sartaj Aziz however many may challenge the government's implementation record.

Pakistan is at a critical juncture in its history with serious law and order problems that have regional and international implications with the government's hands in taking bold decisions tied, to a considerable extent, to the country's rising dependence on international loans to forestall the real possibility of default. In this context it is relevant to note that the budget for the current fiscal year envisages 467.4 billion rupees of external loans in contrast to 274 billion rupees budgeted last year with only 214 billion rupees realised. Irrespective of whether or not this amount would be realised the fact remains that our dependence on external loans was envisaged as nearly doubling in comparison to last year. Our major creditor nations engaged in Afghanistan under the Nato umbrella have been compelling us to take actions since 9/11 - some of which are difficult to justify from our security perspective. Such actions, nonetheless, have relevance when seen in our economic context. Thus Sartaj was astute and credible when he claimed that the government is promoting trade not aid on the one hand and, what is regarded by critics as a contradiction, maintaining that the policy also reflects the country's internal situation on the other hand.

The major policy decisions taken by the incumbent government with respect to promoting trade have been evident in two instances namely the grant of GSP plus status by the European Union and granting the Most Favoured Nation (MFN) status to India. The former, it maybe recalled, was an offer made by the EU as a form of assistance to the PPP-led coalition government in dealing with the massive destruction during the 2010 floods. The delay was initially due to some countries challenging the offer - countries that would have been negatively impacted in their trade with the EU; and later the failure of our government to implement some of the conventions that were a prerequisite for the package. There is no doubt that the incumbent Governor Punjab facilitated the implementation of the GSP Plus status by mobilising his European contacts in our favour; however, there are concerns that the government would have to show improved implementation of these conventions to ensure that the package duration is as long as agreed, or in effect, the government must begin to deal with the insurgency in Balochistan and improve implementation of human rights laws.

The Prime Minister is openly supportive of granting MFN status to India, as was President Zardari during his tenure; however, there are certain sectors that have expressed extreme reservations against it on the ground that the Indian government not only subsidises their sector that would render them uncompetitive even in our local markets but India continues to impose non-tariff barriers some of which are Pakistan-specific. Reportedly the country's establishment has also expressed some concerns and in this context it is relevant to note that the US has been supporting the grant of MFN status to India as well as insisting that Pakistan opens a land route for trade between India and Afghanistan.

Sartaj also stated that the Iran-Pakistan (IP) gas pipeline is still on a priority list but added that the project will be pursued after relaxation of US sanctions. It is unfortunate that the PPP lawmakers are trying to make political capital out of the IP agreement signed during the last week their party was in power as a reflection of their capacity to withstand US pressure. Why did not the PPP government sign that agreement before to ensure its implementation is a query for which the party would have no plausible answer.

The Advisor further revealed that the foreign policy is under preparation and all stakeholders will be taken into confidence. This inclusive approach was also made apparent in the recently tabled National Security Policy and one would hope that given the fact that Pakistan is grappling on so many fronts the Opposition would play a constructive role in strengthening its hands. Be that as it may, the security policy and foreign policy are the domain of the government in power and the PML-N has sufficient numbers to ensure their passage with ease.