The friendly relationship between Pakistan and Japan
more or less started from economic
relations. In the 1950s and 60s Pakistan exported
raw cotton to Japan and Japan processed the cotton into yarn and cloth and exported
Pakistan. Later, with Japan’s export of cotton spinning and weaving machinery
to Pakistan, cotton yarn and textiles became Pakistan’s major export item to Japan
and to the world.
Japan started its economic assistance to Pakistan soon
after the establishment of diplomatic relations; technical assistance in 1954, yen
loan in 1961, and grant aid in 1970. The Pakistan resident office of Japan International
Cooperation Agency (JICA) was established in April 1983, and of Overseas Economic
Cooperation Fund (OECF), the former body of what is now Japan Bank for International
Cooperation (JBIC)) in October 1989 . Since then Japan has consistently played an
important role in Pakistan’s social and economic development as a major trade and
investor as well as a major donor, the top donor since 1990 throughout the present.
Pakistan ranks the seventh position among all the recipients of Japan’s ODA in terms
of total volume of ODA.