Expensive embassies

It makes no economic sense to maintain lavish diplomatic presence, especially when we have little to show for it.

Recently released figures indicate that in 2011-12, Pakistan has spent Rs9.8 billion on maintaining and running its foreign missions, up from Rs5.7 billion in 2008-09. This indicates that the expenditure on the 121 foreign missions that Pakistan maintains globally has almost doubled in just four years.

While it is not easy to quantify the performance of foreign missions in tangible terms, it is still possible to get a lot of circumstantial evidence of their performance. For example, the ministry can be asked if there has been an increase in the general awareness about Pakistan, in the global community at large and in the global economic and financial circles specifically.

The ministry can also be asked if Pakistan’s perception in the world is any better today than it was a year ago, or five years ago. If it is then, yes they are doing their job, or at least part of their job. However, it doesn’t take a genius to guess that Pakistan’s perception has not really improved noticeably, if it hasn’t actually worsened.

According to the response of the foreign ministry, the rise is, for the most part, caused by the depreciation of the Pakistani rupee. This is only partially true. But even if it was true, the question arises whether such lavish foreign missions actually serve a purpose? Foreign direct investment (FDI) has been steadily falling from a historic high of $5.49 billion in 2007-08 to about $812 million for 2011-12.

One can argue that FDI is not entirely the purvey of foreign missions but it is part of their job to find effective ways to market the country. They should play the role of facilitator for trade and not just as clerical and administrative centres for facilitating Pakistanis abroad, or wining and dining the political elite of that country. The figure is not astronomical in itself. But we are a poor country. It makes no economic sense to maintain the lavish diplomatic presence that we do, especially when we have little or nothing to show for it.

Published in The Express Tribune, March 2^nd, 2013.