By H.E. Aftab Ahmad Khokher
The people and Government of Austria are set to mark the Austrian National Day on 26 October 2021. This day is a landmark in Austrian history as the Austrian Parliament passed the constitutional law on permanent neutrality of Austria on 26 October 1955.
Despite its small size and population, Austria has an advanced and highly industrialized economy. Due to its geography – it is a landlocked country in Central Europe – and history, Austrian diplomatic and economic relations remains largely focused on its immediate neighbours including Germany, Italy, Switzerland and Hungary. Engagement with the broader EU zone is also a priority.
Pakistan and Austria established diplomatic relations in 1956 and have traditionally enjoyed friendly ties based on mutual goodwill. In fact, there are interesting historical links between Pakistan and Austria. The great Islamic scholar and translator of the Holy Quran, Muhammad Asad, was an Austrian by birth and his name before embracing Islam was Leopold Weiss. He played an important role in Pakistan’s history: he was an associate of Allama Iqbal; contributed to the drafting process of Pakistan’s constitution and also served at the Pakistani Ministry of Foreign Affairs as well as Pakistan’s Permanent Mission to the United Nations in New York. Another distinguished personage in Pakistan’s history, Begum Viqar-un-Nisa, wife of former Prime Minister Feroze Khan Noon, was also an Austrian national.
Although Austria’s overwhelming economic and commercial engagement is focused on its immediate vicinity, there is significant scope for expanding Pakistan-Austria bilateral economic ties, especially by focusing on non-traditional areas such as IT/software exports and pharmaceuticals. In the traditional sector, Pakistan can boost its exports to Austria by meeting the EU standards on quality, packaging, phytosanitary and other technical requirements. Renewable energy i.e. hydroelectric and wind can be attractive sectors for Austrian FDI in Pakistan. The leading Austrian oil and gas exploration firm OMV has been present in Pakistan since 1990 with a sizeable investment of $ 2.5 billion, including joint ventures.
Another interesting area could be infrastructure development related to ski resorts and alpine tourism where Austria has great expertise. Love for the mountains is something that Pakistanis and Austrians share. Both countries boast some of the most breathtaking mountain landscapes in the world and Austrian mountaineers and adventurers have long been attracted to mountain ranges in Pakistan’s northern areas.
In 2019, total bilateral trade between Pakistan and Austria stood at € 454 million, with the balance of trade in Pakistan’s favour. Pakistan’s exports to Austria registered 86% year-on-year increase in 2019, rising from €168.5 million to € 314 million.
Pakistan and Austria enjoy good cooperation in field of higher education. A major achievement in the field of academics is the establishment of Pak-Austria Fachhochschule Institute of Applied Sciences and Technology (PAF-IAST) in Haripur, Khyber Pakhtunkhwa. The Institute will help students in Pakistan access advanced quality education in emerging technologies. Similarly, an MoU signed between the Austrian Academy of Sciences and the Pakistan Academy of Sciences will be of great help in promoting collaboration between scientific institutions of the two countries through exchange of scientists and scholars and undertaking of joint research projects.
Many Pakistani students are presently pursuing higher level studies at Austrian universities. In addition to contributing to Pakistan’s socio-economic development, they also serve as an important people-to-people link between the two countries.
Pakistan has a small but vibrant and hardworking community in Austria which numbers around 6,000. It is making a positive contribution to Austrian social and economic life and serves as a bridge between the two countries.
Pakistan remains committed to expanding and deepening its bilateral relations with Austria in all spheres of mutual interest.
Following New York and Geneva, Austria’s capital city Vienna is the third United Nations Headquarters and hosts several important international organizations. These inter alia include International Atomic Energy Agency (IAEA), United Nations Industrial Development Organisation (UNIDO) and United Nations Office for Drug Control (UNODC), UN Office for Outer Space Affairs (UNOOSA). The thematic areas covered by these organizations such as the promotion of peaceful uses of nuclear technology, world drug problem, combat against organized crime and corruption are of particular interest to Pakistan. We have, therefore, always remained actively engaged with the deliberations and work of these organizations, including through representation on their policy making bodies. Pakistan remains committed to expanding and deepening its bilateral relations with Austria in all spheres of mutual interest.
The writer is a seasoned diplomat and Pakistan’s ambassador to Austria
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