Pakistan-Turkiye trade agreement faces review post delegation’s visit

Business communities in Pakistan and Turkiye might witness a surge in bilateral commercial activities following Turkish President Erdogan’s visit to Pakistan with his delegation. According to an official announcement, Commerce Minister Jam Kamal Khan met with Turkish Trade Minister Professor Dr Omer Bolat at the Turkiye-Pakistan business forum held in Islamabad.

Reports reveal that officials from both countries outlined the importance of working on the current preferential trade agreement. Revisions to this agreement could remove commercial hurdles and red tape between the two countries, allowing business communities from both countries to reach their true potential.

Jam Kamal and Omer Bolat considered improving the D8 Preferential Agreement. If the agreement undergoes positive changes, trade among its signatory countries could experience a significant boost.

Pakistan’s economy could see large inflows in the form of foreign direct investment (FDI) from Turkiye if the agreement is improved. This is because Omer Bolat highlighted the eagerness of Turkish investors to park their funds in Pakistani ventures and businesses.

However, FDI levels from Turkiye are not as high as they could be, as investors have reportedly faced significant issues when investing their money in Pakistan. This is likely to change as the Turkish delegation is attempting to boost economic ties between both nations.

According to reports, the delegation's trip to cash-strapped Pakistan will include the signing of 21 agreements. These agreements can significantly support domestic projects in important sectors such as infrastructure, defence, education, tourism, services, and IT.

Turkiye’s investments in local businesses could allow Prime Minister Shehbaz Sharif’s Uraan Pakistan project to reach its targets. Uraan Pakistan aims to achieve $60 billion in annual exports from the IT, manufacturing, agriculture, mineral, manpower and blue economy sectors.

Reports reveal that Islamabad outlined its unwavering commitment to support the opening of additional avenues of FDI into the country. Moreover, the federal capital reaffirmed its commitment to further ease doing business by ‘streamlining’ business activities.

Jam Kamal mentioned the importance of the Special Investment Facilitation Council (SIFC) in the creation of a streamlined investment process for foreign countries. However, it might be beneficial for the commerce minister to look into Omer Bolat’s claims that Turkish investors are facing difficulties in investing their money in Pakistan.

Reports claim that Turkiye is planning trade fairs that could boost Pakistan’s exports. The beneficiaries of these fairs are likely to be rice farmers that export Basmati rice, as rice of the aforementioned variety is not traded to the extent they could be under current trade agreements.