Denmark has been at the forefront of constantly supporting Pakistan in addressing and overcoming our fundamental challenges. During the earthquake in 2005 and the recent floods, Denmark was one of the first few countries to provide aid and facilitate relief efforts. Danish Ambassador to Pakistan, H.E Ole E. Moesby talks to Maryam Syed about the challenges that face the trade relations between the two countries and how Danish investment in Pakistan can be encouraged. Pakistan needs to address the security situation in the country and draft a policy that ensures investment in the country with minimum risk and high return, he says.
What are your views on the current relations between Pakistan and Denmark?
H.E Ole E. Moesby: “I am a new comer, as I have only been here for four months. Like all Danes, we were to a certain extent strongly affected by what happened in 2008 when our embassy in Islamabad was attacked by a suicide bomber. It was seen as an attack on Denmark, but actually it was also an attack on Pakistan. After coming to Pakistan my experience here has been very different than what I was expecting. Pakistan too is facing a lot of security challenges and working in the same direction as the rest of the world, because we know we are all up against the same challenges. This is also the reason why we have excellent bilateral relations.. Denmark is a member of the group called‘Friends of Pakistan’, so being an ambassador here, I am extremely happy, proud and pleased to be part of that group. We have a strong and active Pakistan Diaspora community in Denmark and they are good allies in trying to understand the situation in Pakistan and also playing their part in creating strong bilateral relations with Denmark.”
How can economic ties be strengthened between the two countries and what schemes are currently in place to develop economic cooperation?
OM: “That’s an area where I think we can come a long way further than where we are at the moment. And if I may say so I feel that a country like Pakistan has tremendous potential. There are actually many reasons why we should focus on Pakistan’s potentials and there are also reasons why we don’t do it. By “we” I mean Danish private investors. And part of that is because the perception of Pakistan is a little negative. We are not a large economy; we are an economy that is based on exports and international partnerships. But with the size of our economy, there are many other possibilities for creating partners than in a country like Pakistan. So Pakistan has to play an active role in trying to change its perception. At the moment the economic crisis in Europe has made investors a little bit more reluctant. We are actually looking at whether there are good partnerships in Sweden, Germany, Norway or some of the neighbouring countries. The whole perception and possibility is largely overshadowed by terrorist activities in Pakistan. As to how we can strengthen bilateral relations, I think we can work together to take measures to change the perception of Pakistan. Two weeks ago, I was happy to participate in a newly established Danish-Pakistani business club. And we were discussing how we can promote Danish companies’ engagement in Pakistan and trying to persuade others in Denmark to show interest in Pakistan. I feel Danish companies can play a big role in helping Pakistan overcome some of its biggest challenges. At a recent meeting with the WHO Country Director, I was extremely pleased , to discuss what the agenda is on ‘Diabetes day’. Denmark is not only involved in Diabetes, but also in the medical field in general, and I feel that is an area where we can play a big role in Pakistan. Medical field is a challenge in Pakistan and this field can serve to develop a partnership between Danish companies and Pakistan. Another area, which of course is also a big challenge in Pakistan, is the area of energy. We can relate to that because we were subject to an energy crisis in the 70s and that crisis had a devastating effect on the Danish economy. However, the good news is when you have a crisis you can think along the lines of how to mitigate the crises. Our industrial production in Denmark is almost twice as high as it was in the 1980s. We are using the same energy to produce that so the effectiveness and efficiency of our energy is better, and we have also moved towards finding other sources of energy. We are not only producing energy using coal but also using renewable energy. You have a big resource in Pakistan which you could use.In Denmark, we are using waste to produce energy, and are currently importing waste material and converting that into energy. The waste being produced in Pakistan can therefore be a tremendous resource.”
What are the challenges faced by Pakistan and Denmark in developing trade relations?
OM: “I was referring to the medical industry and the energy industry, because I think those are core areas of investment. However,, there are also many other fields that can be developed together. The current situation is actually that there is a higher interest of Pakistani investors to invest in Denmark than you have of Danish investors investing in Pakistan. And that is because in Pakistan, the risk is considered very high and therefore the return rate is also very high. The return rate in Denmark is comparably very low, but the risk is also very low, sopeople want to make sure that they put their money where they are sure of the return.. It is therefore a challenge for us to try and make sure that we can overcome this situation and make Danish investors feel that it is secure and safe and reliable to invest in Pakistan. To start building that policy that turns the wheels to bring interest of foreign investors to Pakistan is something that is in the interest of all of us.”
Denmark has been at the forefront of promoting peace in Pakistan. Can you shed light on the initiatives undertaken?
OM: “First of all, Denmark was very quick in reacting to the some of the natural disasters in Pakistan. I saw that myself during the 2005 earthquake, when I visited some of the most affected areas. We were one of the countries providing the quickest relief efforts.We also provided immediate assistance during the floods in 2011-12., which I think is a reflection of our commitment to be strong partners of Pakistan. Apart from that, we are working for more long term development assistance programmes in Pakistan, where we are strongly supporting primary education to young girls through UNICEF. We are also working closely with the civil society in Pakistan to promote human rights and gender equality. We are also actively involved in the combat against drugs through UNODC’s program for Pakistan. Currently, we are inthe process of identifying areas of support for the next 3-5 years in Pakistan. The good news is however that there is absolute agreement in Denmark that we should provide a high level of assistance to Pakistan, because we believe we have a strong commitment towards this partnership.”
What does the future hold for bilateral relationship between the two countries?
OM: “I would like to see a more business friendly Pakistan in near future, because a more business friendly Pakistan will be a more secure Pakistan. By creating a better business environment through addressing the security issue, we will be able to develop stronger bilateral relations. You can address these issues by moving on and developing a strong economy, because young people need to feel that they have a future and that something is going in the right direction. I was in Europe during Denmark’s EU presidency. During the Danish EU Presidency there were two important things on the agenda;One of them was to strengthen efforts to remove trade restrictions between Pakistan and EU and include Pakistan in the GPS plus scheme. The second point was an agreement for a joint antiterrorist strategy with Pakistan. Personally, I am very proud of the Danish efforts during the EU presidency in achieving these results”
