Malta–Pakistan relations

Pakistan-Malta relations

Pakistan	Malta

Malta–Pakistan relations are defined by the historical bilateral relations existing between the two states. Malta is considered a gateway to the European Union for Pakistani entrepreneurs, whereas Pakistan gives simultaneous access to Maltese business interests in Asia.

However, neither country has a resident ambassador at this juncture. Malta is represented in Pakistan through its embassy in Beijing and an honorary consulate in Karachi. On the other hand, Pakistan is concurrently accredited to Malta through its embassy based in Tunis with an honorary consulate in Attard (Malta) since September 2015. Both countries are full members of the Commonwealth of Nations.

High Level Interaction

Bilateral meetings have always emphasized the need for increasing commercial and economic collaboration, chiefly through encouraging the exchange of trade delegations. In a meeting in Valletta in 2007 between the respective Foreign Ministers, the two countries concurred to "continue the ongoing cooperation between the two countries in the United Nations and other international forums as well and reviewed bilateral ties with a view to strengthening relations between Pakistan and Malta in all spheres, especially trade and investment."^[1][2][3] The exchange of trade delegations are meant to assess and exploit the true potential of economic cooperation between the two countries, which are the "gateways" to their respective regions.

Pakistan has also sought Malta's support to Pakistan's initiative for equitable market access to the European Union through a Free Trade Agreement or similar mechanism.^[4][5]

The need to take the initiative also echoed during the meeting of Maltese Prime Minister Joseph Muscat with his Pakistani counterpart, Nawaz Sharif, on the sidelines of the 24th Commonwealth Heads of Government Meeting (CHOGM) session in Malta in November 2015.

Aviation

Malta's national airlines, Air Malta, was established in the 1970s with the help and expertise of Pakistan International Airlines (PIA).^[6] At that time, the government of Malta had made several attempts to establish a national flag carrier with the possible assistance of an established foreign airline.

Accordingly, PIA emerged with the most favourable contract conditions and upon commencement, offered to invest 20% in shares.^[7] PIA provided a management team which would run the airline from its inception. The early generation of Air Malta pilots, as well as flight and ground engineers owe their training and initial knowledge to PIA.^[7] The first batches of novices were dispatched to Pakistan where they undertook extensive training.^[7]Two Boeing 720s were also leased from PIA for a five-year period. In 1973, PIA assigned a general manager and four senior managers to Air Malta who would be responsible for the airline's marketing, financing, flight and ground operations.^[7]

Air Malta eventually found itself in a conducive position to utilise local resources and sustain operational capability with full-time Maltese staff. Within an agreed time frame, the Maltese government was able to acquire PIA's 20% stake.

Bilateral Trade

The prevailing state of economic relations between both the countries paints a very nominal picture with annual trade recorded at US$ 8 million. Trade relations between Malta and Pakistan are governed by the Cooperation Agreement signed between the European Community and Pakistan in 2004 since Malta is part of the EU. The Cooperation Agreement is further bolstered due to a 5-year engagement plan that enhances bilateral trade and investment between the two parties.

Pakistan is a major beneficiary of the trading opportunities offered by the European Union under the Generalized Scheme of Preferences (GSP). As of 2014, we benefit primarily due to zero duty rates on two thirds of all product categories under the auspices of this scheme.

Inspite of this fact, our bilateral economic interaction with Malta lies much below potential. The Maltese economy has had an exponential growth, particularly after it joined the EU in 2004, and this has yet to be properly tapped by Pakistani entrepreneurs. It has a substantial demand for cotton products, especially by the hotel industry.

Since acquiring membership of the European Union in 2004, Malta’s significance for Pakistan has increased. It sustained, among others, Pakistan’s bid for EU GSP+ status in December 2013. Malta will assume the EU Presidency for six months from January-June 2017.However, it shall remain part of the EU Council of Ministers, since July 2016, upto December 2017. The presence of a friendly state such as Malta in the Council, when the extension of Pakistan’s GSP Plus status will come under review, would certainly be of great assistance.

In addition, Malta offers a bridge for Pakistani exports to gain access to the EU market while Pakistan can provide a gateway for Maltese products to South Asia, China and CARs. Malta has also set apart free port facility for Pakistani goods to Europe and North Africa.

Aggregate trade in goods with Malta experienced a period of accelerated growth during 2004-2006, reaching an all-time high in 2006, only to plummet abruptly in the following two years. Since 2008, total trade has been on a growth trend and is on track to reach the highs experienced back in 2006. The pattern reflects the trend in imports. This stems from the fact that exports from Pakistan have always surpassed export figures and the fact that export levels have been relatively consistent through this span of time. This has also been reflected in the trade gap, which has been consistently widening.

Exports from Pakistan comprise almost two thirds (64.19%) of total receipts documented. These are chiefly made-up textile articles, bed sheets, towels, used apparel and rags, cotton, cereals, surgical instruments, clothing accessories, beddingm furniture, knitted/crocheted or otherwise. Imports emanating from Malta are more diversified. These include electrical machinery, mechanical appliances, miscellaneous edible preparations, vehicles other than railway or tramway rolling-stock, wood pulp, paper, paperboard, essential oils, perfumes and recyclables.

Joint Commission

The Joint Commission between Malta and Pakistan was established in January 1976 which has remained dormant after its inaugural session organized in Malta from 14-15 April 1977. Pakistan’s proposal to reactivate the Joint Commission for promoting cooperation between both countries received Malta's concurrence wherein it recommended an exploratory technical-level meeting in October 2015. This avenue would have discussed the outline of the revived Joint Commission. Spheres of collaboration are Finance and Investment, Transport, Health and Tourism.

Bilateral Agreements

In May 2013, Malta unilaterally decided to grant visa free entry to the holders of Pakistani diplomatic passports. Ultimately on 15th July 2016, the Agreement on Visa Abolition for Diplomatic/Official Passport Holders & the Air Services Agreement were concluded on the sidelines of 11th ASEM Summit in Mongolia.

On the other hand, an MoU on the Avoidance of Double Taxation - that came into force on 20th December 1975 after it was originally signed on 8th October 1975 - is being assessed by both sides for prospective upgradation.

Support Of Candidatures

Both countries have supported each other’s candidatures at international bodies. Pakistan had backed the Maltese Foreign Minister’s unsuccessful bid for the post of Secretary General of the Commonwealth in 2008. On the other hand, Malta lent its support to Pakistan’s re-entry into the Commonwealth in 2005.

Malta backed Pakistan's successful bid at seeking election to the Council of Administration (CA) of the Universal Postal Union (UPU) for the period 2017-2020. This was organized during the 26th UPU Congress in Istanbul in October 2016. On the other hand, Malta intends on presenting its candidature for a non-permanent seat of the UN’s Security Council in 2020 and has sought Pakistan’s support in this context.

Human trafficking

There have been several documented instances. In 2002, a Maltese citizen of Pakistani origin was sentenced to seven years imprisonment in Malta. He was found guilty of kidnapping 11 Pakistani infants that were brought to Malta for adoption.^[8]

Later in 2009, it was widely reported that a Pakistan-based human trafficking ring had set up a successful business in Malta of furnishing illegal documents to Pakistanis seeking entry into mainland Europe. Malta is a major transit point onwards to the southern reaches of Italy and Spain. Pakistan's Federal Investigation Agency (FIA) also corroborated the modus operandi.^[9]

This trafficking network eventually has resulted in widespread arrests. In December 2002, a boat transporting approximately 110 undocumented Pakistanis was stopped by the Maltese Army and the illegal passengers were detained under the immigration act. Relatives of the detainees pleaded with the Pakistani government to provide consular assistance and other relief.^[10]

Fundraisers For Flood Victims

Following the 2010 Pakistan floods, a dinner was patronised by the President of Malta in support of and as a mark of solidarity with the victims.^[11] This flood support initiative has been quoted as "a milestone in the history of Pakistan and Malta relations." Several fundraisers have since been organized by members of Malta's political elite, corporate sector and entertainment industry. A substantial figure was generated as a result of a donation drive in July 2016 for victims of the deluge that ravaged northern Pakistan.^[11]

Pakistani Diaspora

According to contemporary estimates, approximately 250 Pakistanis reside and work in Malta. Most are primarily engaged in the caregiving sector. Several are employed by financial ventures and in information technology. A few are running their own ventures including trade, aesthetics and the restaurant business. On the other hand, the number of Maltese living or visiting Pakistan is negligible at best.

References

1. "Pakistan's Musharraf, Malta minister discuss bilateral ties". Pakistan Television Corporation via BBC Monitoring. June 14, 2007. Retrieved 2011-01-13. ...
2. "Pakistan, Malta to Continue Cooperation at International Forums". Pakistan Times. June 14, 2007. Retrieved 2011-01-13.
3. "Malta, Pakistan review, strengthen bilateral ties.". Pakistan Press International. June 14, 2007. Retrieved 2009-06-04.
4. "Pakistan ties". Associated Press of Pakistan in Daily Malta. Retrieved 2009-06-04.
5. "Pakistan, Malta agree to continue ongoing cooperation at international forums". Asia Pulse. June 13, 2007. Retrieved 2009-06-04.
6. "Gilani, Malta President hold bilateral meeting". Guluna. September 1, 2009.
7. Captain Robin J. Zammit. "Air Malta: A story of flying colours". ReoCities.
8. "Maltese jailed for trafficking Pakistani babies". May 24, 2006. Retrieved 2009-06-04.
9. "Pakistani human traffickers use Malta as staging post for Europe". The Malta Independent. Retrieved 2009-06-04.
10. "Pakistanis in Malta jail seek govt help". Dawn (newspaper). December 20, 2010.
11. "Solidarity dinner for the Pakistani people". The Malta Independent.