ISLAMABAD: Despite problems in the signing a Free Trade Agreement, the Pakistani exports to Turkey will be increased to $1 billion by the end of the current fiscal year, sources said.
The Ministry expects that both the countries will resolve the issues in the light of third High Level Strategic Council where prime ministers of both the countries expressed the resolve to promote cooperation in commercial and trade sector.
“The Ministry Commerce is searching new potential markets in different parts of the world to increase the country’s trade. Pakistan’s major imports from Turkey, include manmade textiles, towels, steel structure, tanning and plastic chemicals, processed milk and whey. Pakistan’s major exports to Turkey are denim PET, ethanol, cotton yarn, fabric, rice, garments, leather, carpets, surgical instruments, sports good and chemicals,” sources told Customs Today.
The sources said that the commerce ministry has asked the government for clearance to take a long simmering dispute with Turkey to the World Trade Organisation (WTO) after prolonged discussions on a Free Trade Agreement (FTA) between the two countries have hit an impasse. The sources told that the commerce ministry believed that the Turkish government was under an obligation to extend GSP+ status to Pakistan because the former was a member of the EU customs union.
The sources said that more than 100 Turkish firms were operating in Pakistan; however, Turkish investments were mainly focused on energy, finance, infrastructure projects and contracting sectors. Construction is the leading sector for Turkish investors in Pakistan. So far, the total amount of projects completed or undertaken by Turkish contractors are over 45 projects and the investment exceeded $ 2.7 billion in Pakistan.
The sources said that some 58 Pakistani companies were working in Turkey with main focus on electronics, telecommunications, machines, trade and banking. Moreover number of Pakistani tourists visiting Turkey has increased during the past few years, the number is still below the desirable level.
Furthermore, the sources said that Turkey had been providing development aid to Pakistan since 2004; the total amount of official development aid allocated for Pakistan in last 14 years had crossed the digit of $ 800 million.
To further streamline the development activities, the sources said that the Turkish Cooperation and Coordination Agency has also become active and operative in Pakistan from some eight years back to administer civilian development aid.
