Hungary aims to enhance its economic presence in Pakistan, with MOL leading investments, promoting bilateral cooperation, and supporting SMEs in entering southern and eastern markets.
Syed Ali Nawaz Gillani
Pakistan and Hungary have extended their cooperation far beyond the diplomatic realms of the two countries. This bond is unique due the two hundred years of history, cultural blending, and goodwill that preceded it. While Hungary has always been fond of the Indus region, Pakistan’s contribution toward maintaining peace in the region has fostered this relationship further. This relationship is not merely based on political good will but on belief and understanding, which manifests the power of multicultural participation. With increasing globalization, the changing nature of Hungary-Pakistani relations suggest and economic and investment opportunities. The relations that were established in 1965 bear a staggering amount of history with it and are built on mutual respect and understanding.
MOL hopes to lead new investment in Hungary and is willing to strengthen the economic link between the two countries by purchasing shares of Pakistani businesses, facilitating venture partnerships, and supporting the export of small and medium enterprises (SMEs) to the South and East. The bond of these countries is strengthened and built on trust, cultural relations, and shared objectives. While these countries seek to furthur diplomatic relations, these are but the formal steps towards a deeply rooted ancestral relationship.
The links between Hungary and the Indus region allows traces of their connection all the way to the ancient eras. To this day, Hungarian scholars pay a significant amount of attention to South Asia’s history as well as its languages and traditions. One of the most remarkable Hungarian scholars, Aurél Stein, focused on this region and furthered connected the two cultures through his extensive work. These initial linkages sculptured a solid collaboration between Pakistan and Hungary, owing to the confluence of respect and intellectual traffic that existed between the two nations.
Pakistan and Hungary’s official diplomatic relations were formed in 1965, but as with most countries, interactions of some type existed before this time. Over the years, the two countries have deepened their relations through trade, cultural relations, commerce, as well as political relations. Hungary has also never forgotten Pakistan’s efforts for achieving balance in teh region and rendered assistance to Pakistan in various international issues.
Hungary has gradually expanded her economic operations in Pakistan, particularly with regards to areas that overlap in mutual interests. MOL, a leading Hungarian oil and gas company, is one of the strongest examples of bilateral economic collaboration. These investments go beyond addressing one aspect of Pakistan’s energy deficit, as they also foster an environment of employment which impacts the economy positively.
In addition to energy, Hungary is keener on co-operating with Pakistan in its agriculture, food processing, machine tools, electronics, water sanitation, environmental technology, and medicine. There is a healthy trade relationship between the two states, but there are problems of a regulatory nature, security, and a rather business unfriendly environment which makes it complicated. These circumstances have at times retarded the pace of economic cooperation, but the two governments endeavor to work together to remove these hurdles and make doing business easier.
Despite obstacles, Hungary is inclined to increase trade with Pakistan, recognizing significant collaboration opportunities. Hungary seeks new markets while aiding Pakistani businesses in Europe. Aspects of the cultural exchange programs offered by the embassy only serve to enhance Hungary-Pakistan relations. These relations are also strengthened by the Stipendium Hungaricum scholarship of 400 per year, which improves educational relations with Pakistan and from whose returning students the country benefits in friendly bilateral relations.
Hungary has also come forward in supporting Pakistan during its tough times like providing humanitarian aid support during natural disasters. A well-known case is the earthquake of 2005 when Hungary came forward to assist victims by sponsoring mobile hospitals and other resources. MOL also aid in $500,000 to assist in the relief. Such benevolent acts have increased trust and friendship between the two nations.
Hungary also considers Pakistan as a significant player of the regional and has supported the country’s action against terrorism. With the global magnitude of concerns regarding extremism and instability, South Asia requires the guidance of Hungary which aids in maintaining control of the regions. This big issue for both nations helps ensure activeness further increasing their partnerships.
Some of the concern areas that still affect the relations between Pakistan and Hungary despite the strong ties existing is the lack of transparency in business and a mix of complex regulations that slow down progress. A significant portion of Hungarian people do wish to invest in the country but the issue of the security makes them skeptical.
There are some trade exchanges between the two countries but not at a reliable frequency. Even though both nations appreciate the value of their trade relations, factors like red tape, vague regulations, and inefficient logistics have made the expansion of trade very difficult. Solving these issues would motivate more investors from Hungary to come into Pakistan and the other way around.
Public perception is another aspect that require attention. A lot of Pakistanis do not know much about the economic possibilities and the cultural nuances Hungary has to offer. On the other hand, the knowledge about the possibilities that Hungary has regarding Pakistan is extremely limited within Hungary. Increased collaboration between the media and more student exchange programs would be effective in narrowing the gap and increasing interaction opportunities.
Nonetheless, these problems exist, but the outlook of the Pakistan-Hungary relations appears bright. Both countries are focusing on deepening these relations in energy, agriculture, information technology, health, and education.
The expertise that Hungary possesses concerning agriculture and food processing should be beneficial for developing agribusinesses in Pakistan. At the same time, there is considerable potential for collaboration in food production and exports using Hungary’s farming systems with Pakistan’s agricultural potential. As countries, Hungary and Pakistan have had an understanding of each other’s economies and respect for sustained bilateral relations. They continuously work towards improving relations despite challenges that either country faces. This long-standing willingness to collaborate is evident in tightening of relationship in terms of increasing scholarships, trade, and cultural events.
(The writer is a political commentator based in Peshawar and the Secretary General of the Pakistan-China Friendship Association for Khyber Pakhtunkhwa. He can be reached at syeed.gilani@gmail.com)
