Economic  Relations

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 them to 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.