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Zahid Shahab Ahmed, University of New England (Australia) and Stuti Bhatnagar, Jawaharlal Nehru University (New Delhi, India) Qatar 170,000 Bahrain 280,000 Source – Governmental figures Statistics collected by the ministry of External Affairs reveal that the ‘socio-economic profile’ of Indian migrants to the Gulf has been shifting in a positive direction since the late 1980s. There has been an upward flow of professionals and white collar workers. Others are engaged in the gold, electronics, motor spare parts or textiles trade, in the construction industry or in managing hotels and restaurants. Each year India receives significant amount of foreign remittance from its nationals in the Gulf – a sum which contributes to India’s financial reserves and is reinvested in development in India. According to a World Bank report in 2007, India is the highest receiver of remittances from abroad. Around 5.7 million Indians from across the world sent $27 billion as remittances in 2007 and the Gulf accounted for a large chunk of it. Pakistan’s relations with GCC countries Pakistan enjoys special and cordial relations with all of the Gulf countries, formalized through bilateral and multilateral cooperation on trade, security and economic development. It also benefits through remittances coming from its diaspora in the Gulf and also through the Gulf investment towards development in Pakistan, mainly in telecommunication, construction, agriculture and energy sectors. Bilateral Relations With hopes of enhancing economic and trade activities between Pakistan and the GCC, the Framework Agreement on Economic Cooperation was signed in 2004. The meeting held between the GCC Secretary General Abdul Rahman Bin Hamad Al-Attiya and GCC Ministerial Council Chairman Sheikh Muhammad Sabah Bin Salem Al Sabah (also the Foreign Minister of Kuwait) and former President of Pakistan Pervez Musharraf, in Islamabad, was the first step towards 271
Gulf States and the Conflict between India and Pakistan liberalizing trade and thus initiating a discussion on Free Trade between the stakeholders. Since 2004, there have been a series of negotiations between Pakistan and the GCC to reach an agreement on the Free Trade Agreement (FTA). Considering the ongoing financial crisis in Pakistan, the country is in dire need of the FTA with the GCC to boost its economy. In September 2008, at the second round of negotiations in Saudi Arabia, it was decided that the FTA would be signed by the end of 2008. In addition to cooperation with the GCC as a regional bloc, Pakistan has also maintained close bilateral relations with individual members of the GCC. Pakistan and Saudi Arabia: Owing to its significance of being the holiest place for Muslims around the world, Saudi Arabia occupies a very sacred place in the hearts of millions in Pakistan. This relationship gets further strengthened every year with about 160,000 Pakistani pilgrims going to Saudi Arabia to perform the Haj, and the number is much greater for Umra. Over the decades, Saudi Arabia has also been providing support for Islamic education in Pakistan and has welcomed thousands of Pakistani workers into its labour force. The value of Pakistan-Saudi Arabia relationship is evident through frequent high-level talks between state officials. During his visit to Saudi Arabia in 2006, then Prime Minister of Pakistan, Shaukat Aziz, emphasized Pakistan’s closeness to the Kingdom, “Pakistan will make any sacrifice for the safety, integrity and sovereignty of Saudi Arabia”. 1 In the recent past, the Gulf region has been active in domestic politics in Pakistan, for instance in the form of hosting former Prime Ministers Nawaz Sharif in Saudi Arabia and Benazir Bhutto in the UAE. The recent case of Saudi Arabia putting pressure on Nawaz Sharif to value his deal and live in exile in Saudi Arabia is unique because it was probably the first time the Kingdom got involved in the internal politics of any other country. 1 “Pakistan to make any sacrifice for Saudi Arabia: PM”, Arab News, December 1, 2006: http://www.xenel.com/pdf/01-12-2006.pdf 272
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Gulf States and the Conflict between India and Pakistan<br />
liberalizing trade and thus initiating a discussion on Free<br />
Trade between the stakeholders.<br />
Since 2004, there have been a series of negotiations between<br />
Pakistan and the GCC to reach an agreement on the Free<br />
Trade Agreement (FTA). Considering the ongoing financial<br />
crisis in Pakistan, the country is in dire need of the FTA with<br />
the GCC to boost its economy. In September 2008, at the<br />
second round of negotiations in Saudi Arabia, it was decided<br />
that the FTA would be signed by the end of 2008.<br />
In addition to cooperation with the GCC as a regional bloc,<br />
Pakistan has also maintained close bilateral relations with<br />
individual members of the GCC.<br />
Pakistan and Saudi Arabia: Owing to its significance of<br />
being the holiest place for Muslims around the world, Saudi<br />
Arabia occupies a very sacred place in the hearts of millions<br />
in Pakistan. This relationship gets further strengthened<br />
every year with about 160,000 Pakistani pilgrims going to<br />
Saudi Arabia to perform the Haj, and the number is much<br />
greater for Umra. Over the decades, Saudi Arabia has also<br />
been providing support for Islamic education in Pakistan and<br />
has welcomed thousands of Pakistani workers into its labour<br />
force. The value of Pakistan-Saudi Arabia relationship is<br />
evident through frequent high-level talks between state<br />
officials. During his visit to Saudi Arabia in 2006, then Prime<br />
Minister of Pakistan, Shaukat Aziz, emphasized Pakistan’s<br />
closeness to the Kingdom, “Pakistan will make any sacrifice<br />
for the safety, integrity and sovereignty of Saudi Arabia”. 1<br />
In the recent past, the Gulf region has been active in<br />
domestic politics in Pakistan, for instance in the form of<br />
hosting former Prime Ministers Nawaz Sharif in Saudi Arabia<br />
and Benazir Bhutto in the UAE. The recent case of Saudi<br />
Arabia putting pressure on Nawaz Sharif to value his deal<br />
and live in exile in Saudi Arabia is unique because it was<br />
probably the first time the Kingdom got involved in the<br />
internal politics of any other country.<br />
1 “Pakistan to make any sacrifice for Saudi Arabia: PM”, Arab News,<br />
December 1, 2006: http://www.xenel.com/pdf/01-12-2006.pdf<br />
272
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