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Australia is a key player in the world politics and it is focusing on Asia for mutual benefit and development in the emerging Asian century. Apart from other Asian countries Australia’s role in Pakistan cannot be ignored. It has extended support in every sector and promised to help Pakistan in this need of hour. Pakistan and Australia share cordial relationship. Recently, Australian High Commission in Islamabad hosted a reception to celebrate Australia’s long lasting and evolving relationship with Pakistan. In his address, the Australian ambassador to Pakistan, Mr Tim George said, “Australia is now the 13th largest economy in the world with a GDP of $US1.6 trillion and a global trading nation with two-way trade in excess of US$550 billion”. This makes Australia a key member as far as peace and stability at global level is concerned.

After 9/11 both countries came close to each other and worked closely to attain common objectives to defeat terrorism and extremism from this region and to ensure global peace and security. Both countries have suffered a lot in the war against terror. It suffered more than 33 casualties in Afghanistan and played an important role in training the Afghan security forces, reconstruction of schools and hospitals in Orugzan province.

In Pakistan, Australia played a significant role in providing assistance in counterterrorism/ intelligence sharing, poverty reduction programs of Pakistan, assistance in energy related projects, enhanced economic assistance and trade. Australia has also played an important role in the aftermath of 2005 earthquake and 2010 floods. Australian rescue teams set up flood relief camps and provided medical assistance to victims of natural calamities in Pakistan.

Australia has extended its support to Pakistan in agricultural sector, dairy, livestock and mining. It has provided scholarships to Pakistani students and significantly assisted Pakistan in technical education. This article aims to highlight Australia’s contribution, efforts and role in the development of Pakistan.

Pakistan is facing numerous security challenges to its existence. It has been a frontline ally in the war against terror and has suffered huge economic and human losses from 2001 to 2012. According to official figures by the State Bank of Pakistan, the country has suffered $78 billion losses in the last decade. Such a huge financial cost shattered Pakistan’s economy.

At this moment, Pakistan’s economy is struggling. Keeping in view Pakistan’s deteriorating economic conditions the Australian government extended its economic support to Pakistan and enhanced its trade relationship with Pakistan.

From the year 2008 onwards Pakistan’s economy faced huge setbacks due to global economic recession, energy shortage, decline in foreign direct investment and internal subversion. At this crucial juncture Australia's aid to Pakistan increased manifold. In 2011-12 Australia's total Overseas Development Assistance (ODA) for Pakistan is estimated at $92.8 million, including an estimated $79.0 million for the bilateral program. In the year 2010-11 Australian aid stood at $119.3 million in the aftermath of gigantic floods in Pakistan.

Apart from this aid, Pakistan and Australia’s trade relationship also grew after 2008. Respecting Pakistan’s view that ‘Pakistan want trade not aid’, Australia enhanced its trade relationship with Pakistan. In 2008, trade between both states stood at $600 million which grew to $703 million in 2010. Both countries can enhance their bilateral trade. Pakistan is an agrarian country but its farmers lack modern techniques in agriculture. Australia can assist Pakistan in this regard. In this way Pakistan’s agriculture sector would not only benefit from agribusiness with Australia, but its crop production and quality will also increase substantially.

Pakistan is also blessed with immense natural resources, which include coal, gas, oil, gold and many more. Australia has immense expertise in mining sector. Pakistan can benefit from Australian mining sector and explore hidden treasures in Pakistan for mutual benefit. Currently, Pakistan’s major issue is energy shortage. This issue has not only shattered Pakistan’s economy, but also paralyzed daily life. With the help of Australia, Pakistan can utilize immense coal reserves in Sindh; these coal reserves can resolve Pakistan’s energy shortage. Pakistan possesses huge reserves of oil and gas in Balochistan, Khyber Pakhtunkhwa and Sindh but due to lack of funds their exploration is not possible.

In District Karak of KPK huge reserves of oil and gas were discovered a few years back and it is expected that the adjacent areas of Karak are rich in natural resources. This is just one example; there are many areas in Sindh and Balochistan where Pakistan government wants to carry out exploration but due to lack of funds and expertise they are reluctant to do so. However, the Australian mining industry has immense experience in China and India; it can invest in Pakistan and can earn huge profits from these untapped natural resources. Pakistan is also blessed with huge coastal areas, which could be utilized for the generation of wind energy. Australia can also help Pakistan in this sector and earn not only material benefit but also good will in Pakistan.

In his recent meeting with the Australian High Commissioner in Pakistan, Punjab Chief Minister Shahbaz Sharif urged Australian companies to invest in livestock, dairy farming and mining sectors. He further said that investment in these sectors is lucrative and completely safe and Australian technology and technical expertise will especially be beneficial for mining and dairy farming sectors in Punjab besides creating job opportunities as well as developing industrial sector of the country.


Tim George has also recently announced that Australian companies are planning major investment in the citrus sector in Pakistan which may include a juice extraction plant. According to the Senior Trade Commissioner for Australia in South Asia Peter Linford, “the citrus growing region of Pakistan produces a fruit crop of 2 million tones four times that of Australia but the sector suffers losses up to 40 percent in wastage through handling, storage and cool change management as well as lack of value-added manufacturing options and alternatives”. With Australian investment in this sector Pakistan can improve production of Citrus crop and earn huge profit that can support the already ailing economy of Pakistan and also benefit farmers involved in this sector.

Lack of education is a major impediment in Pakistan’s progress. More than 50% of Pakistan’s population is illiterate and never get access to quality education. In 2005, Australian PM John Howard visited Pakistan and announced 500 scholarships for Pakistani students. After that the number of Pakistani students to Australia grew remarkably. Approximately, 5,000 Pakistani students are studying in Australia. AusAid has also provided significant number of scholarships to Pakistani students. From 1991 AusAid has provided 433 Australian Development Scholarships (ADS) to Pakistani nationals, of which around 39 per cent were to women. Fifty-one Pakistani nationals will begin their ADS studies in Australia during 2011. Australia’s contribution in the education sector of Pakistan is commendable.

Australia’s support and relief efforts after the 2005 quake and floods in 2010 cannot be forgotten. Australia in these natural calamities provided medical assistance, humanitarian aid and reconstructed schools and hospitals in the affected areas. In the aftermath of floods in Sindh, Australian medical teams treated more than 11,000 people and saved many lives. Such a great contribution by Australia in emergency situations will always be remembered and cherished by the people of Pakistan.

Pakistan’s relationship with Australia is not just confined to economic aid, trade, and development but Australia has also supported a lot Pakistan after 9/11. Pakistan has paid a huge price in the war against terror. According to Pakistan Institute of Peace Studies, since 2007 more than 39,020 people lost their lives and got injured in terrorist attacks in Pakistan. Australia has been a key strategic ally of Pakistan in the war against terror. In 2005, Pakistan signed a bilateral counter terrorism agreement with Australia to curb terrorism and extremism. Australia pledged to give counter-insurgency training to six Pakistani officers at Australian Defence College in 2009. Apart from this Australia can also help Pakistan in the training of Frontier Corps, Khasadars, Levies and police in FATA and Balochistan. These forces are ill-equipped and lack expertise to face highly equipped and trained militants. Such training would ultimately improve the efficiency of these forces to counter militancy and terrorism in Pakistan.

Australia is supporting Pakistan to counter threats to its national security and it is also helping Pakistan to overcome economic challenges. Australia’s support in other sectors including energy, education, agriculture, relief and reconstruction is commendable and cannot be forgotten. It is in the core national interest of Australia to help and support Pakistan at this moment because Pakistan is a nuclear weapon state confronting two insurgencies in FATA and Balochistan. Instability in Pakistan would have wide range of implications for regional and global peace. It is imperative for both countries to work together for mutual benefit and shared objective of durable peace and stability at global level.

The author is Research Fellow at South Asian Strategic Stability Institute Islamabad and can be reached at masood.khatak@gmail.com

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