The Ambassador Of Italy In Pakistan

Blurb: Our people are looking for other markets because of saturation and scale of markets. So, the main issue is to project the true potential of Pakistani market. 

EVOLVE: Please share with us your experience before coming to Pakistan and what is your main focus as an ambassador? 

Stefano Pontecorvo: Since 1985, being a diplomat I have diversified experience. I have been in Moscow twice, Brussels, NATO and EU and then served in London and again in Moscow as Deputy Head of Mission. I was also assigned the responsibilities of being Deputy Director General for Africa and Chief of Staff of Deputy Minister for Foreign Affairs and Minister for Africa and Cooperation for Development. Before coming to Pakistan I was serving as Diplomatic Advisor to the Minister of Defense since January 2013. I really had the opportunity to experience the assortment of Italian politics. As an ambassador in Pakistan, my main but not the only focus is promoting ‘Business’ between the two countries and to put Pakistan on Italy’s map and vice versa. I shall quote Chairman BOI, Mr. Miftah Ismail’s words that Pakistan is becoming an inevitable market and it has so many objective complementarities with the entire economy that it is a fit which must work. Let me illustrate it. Pakistan is an agricultural country and Italy produces 70% of the farm machinery that is producing in Europe and we have very good companies, one of which is in Pakistan. We have the biggest agriculture industry in Italy with all expertise in value chain. We have set up a program of 4 million Euros with a following up program of 20 million Euros in Chakwal to support Olive cultivation. Furthermore, renewable energy, textile, leather, furniture, mining and marble are also the sectors where there is scope to do a lot. Italy is among the best in the world for marble machinery while Pakistan has 177 different types of stones, granites and marbles. The most important is that our target markets like Gulf, China and Russia are close and approachable from here. 

EVOLVE: How Italy has transformed itself from a weak economy into world’s most industrialized nation? 

Stefano Pontecorvo: The same way as Pakistan will do, means through the entrepreneurial spirit and talent of its citizens. We were also on the same path but we were in a better environment with bit better and secure neighbors. Secondly Pakistan has the advantage of natural resources that we did not have. No doubt that Italy is one of the biggest industrialized nation of the world but last year was the worst year on the record. Our exports were only 512 billion Euros of that only 18% was from food and fashion while the rest 82% was technology. We are aiming not only bilateral trade but also the investment as we are interested to promote Pakistan’s textile, auto parts, furniture and leather products in Italy.

EVOLVE: How do you opine about the role of bureaucracy for a sustainable economic growth of any country in special perspective of Italy?

Stefano Pontecorvo: Bureaucracy must stay away and let the businessman work and this is in line with what Prime Minister of Pakistan is doing now. Right now what your business community is asking the same way and in the same spirit government is responding. We are at the advanced stage of capitalism in Europe. Capitalism in itself is a good market regulator but it cannot be left to itself because some of its characteristics are socially unacceptable. We need to regulate the market mechanism which fundamentally must be left to operator but within certain guidelines. Here the role of bureaucracy starts but the real mandate lies with the business community.

EVOLVE: Italy is considered a strategic gateway to 500 million consumers across the European Union and to 270 million in northern Africa and the Middle East. How do you compare it with China Pakistan Economic Corridor as this is also connecting two apart worlds; China and Europe? 

Stefano Pontecorvo: Thank you very much for the kind words you have for my country. Yes, Italy is a gateway and again another similarity with Pakistan because Pakistan will become a gateway of a region in which there are 3.2 billion inhabitants which are growing at an economic speed of 7.5% to 10%. The corridor is a game changer. Pakistan will become a hub of transit and a number of industries. In today’s manufacturing the margins are shrinking because of competition. Margins have been reduced to almost 12% to 13% from 30% to 35% so you make money on scale of the markets. There are ten countries in the world with more than 100 Million inhabitants. Brazil in South America, North America, Russia and Nigeria while rest of six (6) are Pakistan, India, China, Philippines, Indonesia and Iran. If you play your cards right, then Pakistan is going to be the hub of this region. As far as playing cards are concerned, please be known that not so many years ago Italy was in the same situation as Pakistan is facing today. I firmly believe that capitalism and economic progress are the biggest democratizing factors in a society because when middle class grows with better understanding of rights and better defended with rule of law, then it becomes powerful enough to impose its views.

EVOLVE: What initiatives are required to connect Pakistani businessmen with global business community? 

Stefano Pontecorvo: No, this is not what Government should do. It is business community that must know what is needed. There are a lot of areas like selection of market, range of product and services to offer, certification, market research, practices and norms and much more to be addressed. Government policies are needed to be streamlined to create business environment. I am doing efforts to bring some huge businesses in Pakistan and honestly speaking the companies are very happy with the business environment of Pakistan.

EVOLVE: How do you support Italian business in the Pakistan? What are the main areas of cooperation? Are there any “open doors” for further business cooperation?

Stefano Pontecorvo: Although, I have responded to this question earlier yet let me make it clearer. We with the help of Ministry of Foreign Affairs and Ministry of Trade are trying to re-put Pakistan on Italy’s map and vice versa. We have opened our Trade Commission office in Karachi with an excellent Pakistani national Mr. Abdul Dawood Pota, who is a well-known businessman. We have brought a number of companies in Pakistan. Then, on 5th of April we have a country presentation in Rome, where Chairman, Board of Investment Pakistan, Mr. Miftah Ismail with a delegation of 20-25 Pakistani businessmen will meet around 500 Italian businessmen and probably Italian Foreign Minister is also planning to come to Pakistan with Italian entrepreneurs on April 20th. So, this way we are trying to frame a mechanism to enhance the visibility of Pakistan in Italy and vice versa. 

EVOLVE: What are the problems Italy has faced in investing in Pakistan, apart from the hefty bureaucratic process? 

Stefano Pontecorvo: No, we have no hefty bureaucratic problems here in Pakistan. In fact, Italy’s 85% GDP is produced by small and average sized companies which obviously feel difficulty to move away from home. Eastern Europe and Africa are our traditional markets and we are also expanding in South East Asia. Now our people are looking for other markets as well, because of saturation and scale of markets. So, the main issue is to project the true potential of Pakistani market effectively rather than processes.

EVOLVE: What about cultural interactions between our two countries and how exactly do you support cultural and scientific cooperation? 

Stefano Pontecorvo: Frankly speaking Italy has been here, in Pakistan since fifties. In recent years we have promoted and sponsored Lahore and Karachi literary festivals and Lahore Mountain Film Festival by inviting very famous Italian mountaineer Simone Moro with his partners Alex Txikon (Spain) and Ali Sadpara (Pakistan). These Climbers from Pakistan, Spain and Italy have become the first mountaineers to scale Nanga Parbat, Pakistan’s “Killer Mountain” and second highest peak after K2, in winter. We are also encouraging university to university contacts and increasing the number of students going to Italy. 

EVOLVE: A number of students from Pakistan are studying in Italy. Do you think that Pakistani universities also need technical support to enhance their standards? Can collaborations of Pakistani universities with Italian universities be expected in future? 

Stefano Pontecorvo: It is already on going with a number of universities. We have setup an association i-e Pakistan Italy Alumni Association. Most interestingly second largest Pakistani community in Europe is in Italy. Pakistanis in Italy are very well integrated and good entrepreneurs and traders. They are very successful. The entire Pakistani community with its Pakistani embassy in Italy is the best publicity of Pakistan in Italy.

EVOLVE: You work very hard as an Ambassador, what do you do to relax? Do you have any hobbies? 

Stefano Pontecorvo: No doubt, I work hard but it is a reality that it is very pleasant to work with Pakistanis. I have been able to make this judgment as I have visited almost sixty (60) countries. Pakistanis are the kindest people when we talk in general with Pakistanis or business community. I have found them very efficient. I believe that I am here for building partnerships on win-win basis. As far as hobbies are concerned I like reading and talking to journalist. I smoke cigars - six (6) a day. I also love to listen to the music.

EVOLVE: Your message to readers of EVOLVE.

Stefano Pontecorvo: I am very glad to be here in Pakistan as I also lived here as a child during 1960-70. My father was Deputy Ambassador at that time in Pakistan. There were only G-6 and F-7 sectors in Islamabad. I found the house where we lived. I had a great time then and a great time now. My message to the readers is ‘Come to Pakistan and make a lot of Money and Friends’.