Ayesha Saba

Pakistan and Türkiye are intensifying their economic cooperation through joint ventures (JVs), notably targeting export-oriented production in the Special Economic Zones (SEZs). This strategic move underscores their recognition of significant mutual benefits and growth potential across various sectors. A senior official from the Trade Development Authority of Pakistan (TDAP) told WealthPK that Türkiye is more industrialized and has a stable economy, with its industry accounting for 29.5% of GDP. He said, “Türkiye has been looking to expand its export base beyond traditional markets, and Pakistan presents an attractive opportunity in this regard. By partnering with Pakistan in SEZs, Turkish businesses can gain access to new markets in South Asia and beyond.” “In August 2022, Pakistan signed a Preferential Trade Agreement (PTA) with Türkiye, offering concessions on 130 tariff lines including food items, engineering products, and spare parts. Türkiye offered concessions on 261 tariff lines mainly on agro-products and industrial goods,” he said.

The official said the PTA holds significant promise in terms of addressing trade deficit. He said by offering concessions on 130 tariff lines, Pakistan aims to create a mutually beneficial trade environment that stimulates growth for both nations. He added that Türkiye's global exports of these products amounted to $23 billion (12% of Turkish global exports), while Pakistan's global imports of these products reached $6 billion. This shows that there is substantial scope for enhancing trade volumes and narrowing the trade gap. Zaki Aijaz, Vice President of FPCCI, underlined the strategic importance of Pakistan-Türkiye relations, citing Türkiye's advancements in trade, technology, and industry. He highlighted Pakistan's significant potential as an investment destination, particularly in sectors like textiles, agriculture, pharmaceuticals, and infrastructure development. He emphasized a shift towards fostering business-to-business (B2B) cooperation, facilitating joint ventures between Turkish and Pakistani companies.

During a recent visit, the Ambassador of Türkiye to Pakistan, Dr. Mehmet Pacaci, met Ahsan Iqbal, Federal Minister for Planning, Development & Special Initiatives, and informed him about the forthcoming meeting of the High-Level Strategic Cooperation Council (HLSCC) between the two nations. Ahsan emphasized the need for Pakistan and Türkiye to explore areas of collaboration, including joint production of export items to third countries and cultural cooperation in arts and media. He advocated for seeking Turkish assistance to establish industries in SEZs for exporting goods to Europe, highlighting the advantage of lower labor costs in Pakistan compared to Türkiye and the mutual benefits of such joint ventures.

Credit: INP-WealthPk