PAKISTANS ECONOMIC COOPERATION WITH MUSLIM COUNTRIES

AND SPECIALLY CHINA

The history of Pakistan (Urdu: ) encompasses the history of the

region constituting modern Pakistan. Before achieving independence in 1947,
the territory of modern Pakistan was a part of the British Indian Empire. Prior
to that it was ruled in different periods by local kings and numerous imperial
powers. The ancient history of the region comprising present-day Pakistan
also includes some of the oldest of the names of empires of South Asia[1] and
some of its major civilizations.
In the 19th century, the land was incorporated into British India. Pakistan's
political history began in 1906 with the birth of the All India Muslim League,
established in opposition to the Indian National Congress party which it
accused of failing to protect "Muslim interests, amid neglect and underrepresentation." On 29 December 1930, philosopher Sir Muhammad
Iqbal called for an autonomous new state in "northwestern India for Indian
Muslims" The League rose in popularity through the late 1930s.Muhammad
Ali Jinnah espoused the Two Nation Theory and led the League to adopt
the Lahore Resolution of 1940, demanding the formation of independent
states in the East and the West of British India. Eventually, a successful
movement led by Jinnah resulted in the partition of India and independence
from Britain, on 14 August 1947.
Pakistan is an advocate of Pan-Islamism in the International system that is
greater unity, greater cooperation amongst the Muslim states so that they
can affectively project and protect their interests. Thats why Pakistan
ascribes prime importance to its ties and relations with the Muslim World.
The Muslims of the sub-continent have deep-rooted affiliation with the
Islamic countries on the basis of religion. Muslims of the sub-continent have
deep-rooted affiliation with the Islamic countries on the basis of religion.
They demonstrated this zeal of brotherhood on many occasions. From the
days of Pakistan movement, Muslims of India followed the traditional policy
with the Muslim World. Pan-Islamism and Islamic values were the strongest
motives behind the demand of a separate Muslim state. So after the
partition, Pakistan always preferred close bilateral relations with the Muslim
countries. Thats why Pakistans full moral support for the independence of
Indonesia, Tunis, Morocco, Algeria, Libya, Sudan and Eritrea.
Pakistan operates on a mixed economy. A "mixed" economy is a mix between
socialism and capitalism. It is a mixture of freedoms and regulations,

constantly changing because of the lack of principles involved. A mixedeconomy is a sign of intellectual confusion. It is the attempt to gain the
advantages of freedom without government having to give up its power.
Pakistan is in vast trouble currently, the Taliban, the different tribes and
different countries will never allow them to experience great growth and
increase living standards, the public is oppressed really
Organization of Islamic Conference:
OIC which is a manifestation of the Muslim World and a concept of PanIslamism. Organization of Islamic Conference is the largest Muslim forum in
the world. Pakistan was very active in creating this forum and it had
remained associated with the OIC right from the beginning of this
organization Pakistan was among the 51 Muslim nations which attended the
inaugural session in Rabat the capital of Morocco (1969) and now OIC
members are 58. Its second conference was held at Lahore in 1974. The OIC
has repeatedly extended support to Pakistan on Kashmir. It had passed
resolutions demanding that the people of Kashmir should be given their right
to decide their political future.
RCD and ECO:
RCD (Regional Cooperation for Development) was set up in 1964 and this
included Turkey, Iran and Pakistan, It worked in the area of economic trade,
cultural and related fields. However, this organization became in active in
1979.
In 1985-86 Turkey, Iran and Pakistan decided to set up ECO (Economic
Cooperation Organization). its objectives were very similar to the RCD.
However, a significant development was that in 1992 6 other members were
added to the ECO when Afghanistan and five Central Asian Republics,
Azerbaijan, Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, Kazakhstan join
ed it. This means that now ECO has 10 members 3 original and others who
joined later on and these members are trying to promote greater economic,
trade technological and cultural cooperation and exchanges amongst the
members.
Economic Assistance and Investment in Pakistan from the Middle
East:
Some of the Middle East Countries had been extending economic
cooperation to Pakistan from the beginning, trade relations were there from

the beginning. From 1972 this relationship, economic relationship, economic

assistance, economic cooperation, investment extended rapidly. Some of the
Middle
Eastern
Countries
like Saudi
Arabia, Kuwait, Iran,
UAE
and Libya provided economic assistance to Pakistan in the 70s and in the
80s. These countries also made investment in Pakistan primarily in the 70s
and some assistance in the 80s. Their economic assistance and cooperation
contributed to Pakistans economic development and stabilization in the 70s
and the 80s.
Further more; Pakistan extends military training facilities to the number of
the Gulf
States and
other
Middle
Eastern
States
in
Pakistani
institutions. Pakistan military personnel retired and serving also go these
countries for different trainings and staff appointments. We all know another
dimension of relationship between Pakistan and the Middle Eastern States
that is thousands of thousands of Pakistanis are employed in different states
of the Gulf region and other Middle Eastern Muslim states and from these
states these Pakistanis working there send part of their earnings back home
and this becomes an important source of earning, foreign exchange earning
for Pakistani state. In this way Pakistanis living abroad especially in the
Middle Eastern region are playing a significant role in Pakistans economy.
This relationship is very important for Pakistan and if there is a crises in the
Middle East this adversely affects the trade between Pakistan and the ME
and also those Pakistanis who are living and working there and their
dependents in Pakistan who get their financial support from these countries
from their own family members.
Pakistan has good relations with all the Muslim countries but we will
highlight Pakistans relations with some of the Muslim countries so that you
have a fair idea of the nature of relationship and the kind of interaction that
takes place between Pakistan and different Muslim countries.
Saudi Arabia:
Lets take up Saudi Arabia first, this has been an important relationship
which is characterized by continuity of cordiality going back to the early
years of Pakistan. The two countries Pakistan and Saudi Arabia shared views
on major international and regional issues. Both countries consult each other
on regional and international issues from time to time. They work together
on Organization of Islamic Conference. Saudi Arabia supported Pakistan in all
its wars with India and its position on Kashmir is supportive of Pakistan. Saudi
Arabia being blessed country is a center of the Muslim Ummah.

Saudi Arabia and Pakistan have an extensive economic relationship that

expanded rapidly after 1972. Saudia had always provided economic
assistance and loans to Pakistan and it had also invested capital
in Pakistan in various projects. An important aspect of relationship is oil
supply to Pakistan from Saudi Arabia. Since 1998 SA had been supplying
crude oil to Pakistan on deferred payment bases. which mean that you get
the oil now but you make the payment of its price later on gradually.
This has help to ease economic pressure on Pakistan and Pakistan has been
able to obtain oil. SA is the biggest oil supplier to Pakistan at the moment.
This relationship is going to expand over the years because both have been
expanding the area of cooperation for example latest addition to this
cooperation is counter terrorism that is both are cooperating to contain
terrorism in the region.
UAE, Kuwait and other Gulf States:
The second important relationship is with UAE, Kuwait and other Gulf States.
As a matter of fact Pakistan maintains very cordial and friendly relationship
with all Gulf States and Pakistanis are based in all these states. They are
working there and contributing to the economy of these countries. These
countries and States have close and cordial relations with Pakistan. The new
era of economic relations has set in after the Gawadar port was built. These
countries have been providing economic assistance and investment
in Pakistan. UAE had established hospitals and Islamic centers in some of
Pakistani universities where students get knowledge and instructions about
Islamic studies and related subjects. I may mention here that
the kingdom of Umman have a large no. of Pakistanis living there, it recruits
its people in Baluchistan from its army from time to time. So there is a
special relationship between this kingdom and Baluchistan. The ruling
families of these states make official and personal visits to Pakistan. So far
as QATAR is concerned the relations are cordial and friendly. There is a plan
under consideration that a gas pipeline from Qatar to Pakistan and if this
project is implemented then the economic ties of both the countries would
deepen.
Iran:
Pakistan maintains good and cordial relations with Iran. Iran is a neighboring
state
with
long
historical
and
cultural
ties. Iran had
another
distinction. Iran was also the first country which extended formal recognition
to Pakistan that is Iran was the first that recognized Pakistan. Irans King was

also the first head of state who visited Pakistan after it came into
existence. Pakistan and Iran had worked together in different organizations;
both had joint arrangements in regard to CENTO which was earlier called
as the BAGHDAD PACT, RCD, and ECO in addition to other global
organizations where they are partners. Iran supported Pakistan in the wars
with India. It stressed on liberty of the people of Jammu and
Kashmir. Pakistan welcomed
the Iranian
Revolution
of
February
1979. However in the initial years of the revolution the relations were rather
at low key. Firstly because Iran was busy in its internal affairs,
secondly Iran had some reservations over the strong ties of Pakistan with
the United States at that time. However since the mid 80s the relations have
been revived and Iran and Pakistan have gradually become close friends and
partners with lot of exchanges and visits at different levels. In fact, 3 Iranian
presidents have visited Pakistan since the revolution. In January 1986,
president Khamani visited Pakistan later he became the Rahber n Iran.
The 2nd president who visited Pakistan was Ali Akbar Rafsanjani who
visited Pakistan in
March
1997.
The
3rd Iranian
president
who
visited Pakistan was president
Khatmi
who
visited Pakistan in
December 2002. From Pakistan side there have been similar important
visits. Currently there is a project under consideration for constructing a gas
pipeline from Iran to Pakistan and then from Pakistan it will go to India and if
this project is materialized naturally the relations would further expand in the
economic domain.
Turkey:
Turkey is another Muslim country with a long history of close and cordial
relations with Pakistan.Turkey had stood by Pakistan in all kinds of situations
in wars or in peace Turkey has supportedPakistan. On Kashmir Turkey has
supported Pakistan and called for a peaceful resolution. If Turkeyhad been
supportive of Pakistan then Pakistan has also supported in all kinds of
situations especially on the Cyprus issue. In Cyprus people of Turkish origin
or you can say that Turkish Cypriotes were a minority and there was a
problem of their rights and interests in Cyprus. In 1974 Turkey landed its
troops in Northern Cyprus and Turkish Cypriotes established their own
separate entity.Pakistan has been supportive of Turkey and Turkish Cypriotes
for this problem and Turkey had appreciated that gesture. There have been
high level civil and military visits, in fact their top military leaders
visited Pakistan and Pakistani top military leaders responded to that and go
back to Turkeyfor similar visits. Both have great contribution in the
multilateral arrangements of CENTO, RCD, ECO, etc.

Egypt:
Egypt Pakistan relations are normal and cordial; currently they exchanged
views on regional and international issues. However in the past in the 50s
and
60s
there
was
a
problem
in Pakistans
relation
with
the Egypt. Egypt under Nasser had some reservations due to Pakistans ties
with the West. Pakistan supported Egypt when it was attacked by Israel in
1956, 1967, 1973. The relations began to improve and the cordiality has
increased since 1967 and especially after the death of Nasser in 1970.
Libya:
Libyas head of state Col. Qazzafi has been a great well wisher and supporter
of Pakistan. He and his govt extended valuable support to Pakistan in the
70s, this support was not only diplomatic support but also economic support
and in the 70s Libya invested in Pakistan. When in 1986 American army
launched air raids on Libya Pakistan despite its close ties with America
condemned American air raids on Libya, We can look Pakistan and Libya
relations in another dimension since the 70s Pakistani military and civilian
retired personnel have been doing job and employment in Libya and this has
been an important bond between the two countries. Now the Libya is
overcoming its problems with the United States Libya Pakistan relations are
becoming friendlier and activated.
Jordan:
Jordan is another example of cordiality and friendship. King Hussein had
special regard for Pakistanand throughout his rule he supported Pakistan. He
worked for close relation with Pakistan. He supported us on India-Pakistan
issues. Now his son King Abdullah continued with this tradition, tradition of
friendship, cooperation and supportive to Pakistan on different issues. Both
have an arrangement of cooperation in the military relationship and since
the mid 60s Pakistani military personnel were based there in different
capacities for training purposes, which strengthened the relationship
between Pakistan and the state of Jordan. Both have trade and diplomatic
exchanges.Pakistan supported Jordan on all international issues especially in
its problems with Israel.
Afghanistan:
Afghanistan is a neighboring state. At the moment Pakistan has good and
friendly relations withAfghanistan but if we go back especially to the early
years of independence we do find problems in the relationship. It was mainly

because of the govt of that time questioned the legitimacy of the Durand
Line that is the border between Pakistan and Afghanistan, and laid claim
Pakistani territory on the name of Pakhunistan. It sided with the
Pakhtunistan issue and created problems forPakistan, but as this issue was
pushed to the background with the passage of time, relationship
between Pakistan and Afghanistan improved. No matter what was the
relationship between the govt of Pakistan and Afghanistan in the early years
the relationship at the common person level or at the individual level was
always cordial. Afghanis are coming into Pakistan and Pakistanis are going
into Afghanistan that has always been the features. The Soviet military
intervention inAfghanistan in December 1979, Pakistan opposed the
Soviet intervention and supported the resistance against the Soviet
Union which gave birth to the Mujahideen groups, Taliban. Pakistansupported
the Taliban govt in Afghanistan but in Sept 11, 2001when the regional
and international environment changed Pakistan withdrew support to the
Taliban, because incident inAmerica concluded major changes in the world
diplomacy. Pakistan got involved in global efforts to contain terrorism. After
Taliban,
Karzai
government
took
responsibility
of Afghanistans
reconstruction. Pakistan extended all kinds of economic and technological
assistance to the Karzai govt for reconstruction and rehabilitation
of Afghanistan. The interest of Pakistan is that a friendly neighboring country
should stabilize, overcome its problems so that the refugees that are there
nPakistan can go back to their homes in security and they might have better
future there.
Bangladesh:
Bangladesh came into existence in December 1971 in a situation which
created
a
lot
of
bitterness
in
Bangladesh against Pakistan and
in Pakistan against Bangladesh. So in the initial years there was a lot of
bitterness between the two countries. Bangladesh was East Pakistan but the
internal
instability
and
external
conspiracies
gave
birth
to Bangladesh. Pakistan had initially bitter relations but recognized it in
February 1974 and from that time its relation with Bangladesh have
gradually improved. Despite the fact that in the initial years both the
countries have complaints against each other. In the present day context
countries have cordial relations, trade has improved and the visits of senior
official and political leaders has been there. Both worked together within the
framework of SAARC, OIC. With the passage of time the relations of both
these countries are going to expand.

Other Muslim Countries:

Then there are other Muslim countries with which Pakistan has good and
friendly relations. I can mention some of the names Indonesia, Malaysia, and
then
there
are
Muslim
countries
in
Africa
like
Algeria, Tunis, Morocco and Sudan. With all these countries I have
named Pakistan has close and cordial relations. This reflects Pakistans effort
to maintain close relations with the Muslim World which is an important
feature of Pakistans foreign policy. This reflects the aspiration of the people
of Pakistan who have been great supporter of Pakistans relations with the
Muslim countries. Whenever there is a problem in the Muslim World the
people of Pakistan have always stood by them and supported them in all
respects therefore the govt of Pakistan has always been doing the same
thing because this is enjoin on the govt from the constitution and this is also
part of Pakistans political heritage, this also fits in Pakistani identity derived
from and based on Islam that it must reflect these values in its foreign policy.