Doing business the smart way

Since I arrived in Islamabad as the British high commissioner, I have been asked many times when British Airways would resume direct flights to Pakistan.

I was therefore delighted to be able to report, earlier this week, that British Airways is indeed back. From June next year, BA will be flying between Islamabad’s new International Airport and London Heathrow three times a week. The resumption of direct flights by Britain’s flag carrier, after more than a decade away, will further strengthen ties between our two countries, which already share an extraordinary connection.

The UK and Pakistan have shared a special relationship for 71 years. Around 1.5 million people of Pakistani heritage call the UK home. That is more than in the rest of Europe put together. Our high commission in Islamabad is one of our biggest diplomatic missions in the world; and the UK spends more money in Pakistan on development aid than any other country. The UK is also Pakistan’s largest trading partner in Europe and third largest globally. Pakistan exported more last year to the UK than it did to China. The UK is also a major source of investment: it was Pakistan’s second largest source of foreign direct investment last year.

There are many more specialist links too. The link between the UK and Pakistan in education is particularly close. A growing number of Pakistanis are studying in the UK or studying for UK degrees and qualifications in Pakistan, and the newly launched Pakistan-UK education gateway opens up more opportunities in higher education. With four of the world’s top ten universities, and many others of world class standards, this is a natural fit. We also invest significantly in primary school education here in Pakistan. Indeed, the UK spends more money in Pakistan on education than anywhere else in the world, outside of the UK. Again this is about investing in Pakistan’s future.

The arrival of British Airways next year will give a major boost to what will already be significant opportunities to strengthen the relationship between the UK and Pakistan on trade. The UK is the world’s fifth largest economy, and in 2018 was ranked ninth for ‘ease of doing business’. It is home to world-class business expertise with London being Europe’s largest capital market.

Pakistan is South Asia’s second largest economy with a population which could rise to 400 million by 2050, a growing consumer middle class, and an affinity for UK expertise, products and brands. With the right economic and business environment, Pakistan will become an increasingly strong trading partner for the UK. The resumption of British Airways flights will bring business travellers from both our countries closer together – to the benefit of both our economies, and as more and more British companies look to do business with, and in, Pakistan.

The government of Pakistan recognises the need to become more competitive globally, and to make the business environment reforms required to make Pakistan an easier and more attractive place to do business. It knows that Pakistan needs to ensure that all the tax, tariff and regulatory regimes are predictable, transparent and increasingly automated – British and Pakistani business tell us this. We have also seen the impact of reform in other economies. We also know that getting there is not easy, and that is why the UK government is committed to helping Pakistan.

Alongside the World Bank, we are supporting Pakistan in the reforms that will improve Pakistan’s business environment and attractiveness to foreign investors. This has already contributed to helping the country improve its ease of doing business index position from 147 to 136 this year. More, however, needs to be done.

The UK remains ready to help and support the government of Pakistan further in these endeavours. We have a shared interest in enabling Pakistan grow its economy through encouraging entrepreneurship, bringing in foreign direct investment and increasing bilateral trade. Pakistani companies tell us they like working with the UK because UK business has high standards of professionalism, integrity and delivery. UK-based companies stand ready to work with the understanding and fairness you would expect to drive future connections, while creating jobs, growth and prosperity in both our countries

Over the coming months, you will see our new initiative. ‘UK and Pakistan: business the smart way’, showcasing all that is good about the UK-Pakistan trade and prosperity partnership.

A new direct flight air link between Pakistan and the UK from British Airways is good news in itself. But it is about much more than just a new flight. It is a symbol of the future health of an historic relationship. In particular, it is a manifestation of the potential of Pakistan and the UK as important trading partners. It is now for both countries and their businesses to realise this potential.

The writer is the British commissioner to Pakistan.