Turkiye,Pakistan sign 24 agreements to boost bilateral trade to $5 billion

ISLAMABAD:  During a recent two-day visit by Turkish President Recep Tayyip Erdogan to Islamabad, Pakistan and Turkiye solidified their commitment to strengthening bilateral ties by signing 24 agreements and memoranda of understanding (MoUs).

President Erdogan co-chaired the 7th session of the Pakistan-Turkiye High-Level Strategic Cooperation Council (HLSCC) with Pakistani Prime Minister Shehbaz Sharif. This council, established in 2009, serves as a platform to foster collaboration across various sectors.

The HLSCC oversees joint standing committees dedicated to key areas such as trade, investment, banking, finance, culture, tourism, energy, defence, and agriculture. Since its inception, the council has convened six sessions, with the most recent one held in Islamabad in 2020.

President Erdogan highlighted the mutual commitment to strengthening relations, stating, “In the seventh session of our strategic council meeting, which we have just concluded, we have agreed to further strengthen our relations.” He also highlighted the scope of the agreements, noting, “Within the framework of this visit, we have signed a total of 24 agreements and MoUs in the fields of trade, water resources, agriculture, energy, culture, family and social services along with science, banking, education, defence and health.”

A primary objective outlined during the visit was to increase the bilateral trade volume to $5 billion.

President Erdogan stated, “We have reached an agreement with Prime Minister Sharif to reach a goal of $5 billion trade volume between Turkiye and Pakistan, and to this end, we are expanding our current goods trade agreement in the first stage.”

The agreements encompassed a wide array of sectors. Four MoUs focused on defence cooperation, while two MoUs and a protocol addressed the power, energy, and mining sectors. Three MoUs aimed to promote cooperation in trade and industry. Two agreements were dedicated to water and seed production, and two MoUs concentrated on scientific education and training.

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The banking sector saw the signing of two MoUs, and another MoU aimed to foster bilateral cooperation in religious services and education. Additional MoUs covered areas such as Halal food, media and public relations, the legal sector, health and pharmaceuticals, and the aerospace industry. Furthermore, two agreements were signed in the fields of cultural cooperation and co-production.

The Pakistan-Turkiye Business Forum also contributed to the enhanced cooperation by exchanging two MoUs designed to bolster bilateral business ties.

The agreements and MoUs were signed by relevant ministers from both countries, with President Erdogan and Prime Minister Sharif in attendance.

Finance Minister Muhammad Aurangzeb and Turkish Foreign Minister Hakan Fidan exchanged signed documents related to the MoU on technical cooperation between the Central Bank of Turkiye (CBRT) and the State Bank of Pakistan (SBP).

Additionally, Finance Minister Aurangzeb and Turkish Minister of Trade Omer Bolat exchanged signed documents concerning the declaration on the MoU between the Export Credit Bank of Turkiye and the Export-Import Bank of Pakistan.

President Erdogan highlighted that extensive discussions were held with Prime Minister Sharif on bilateral, regional, and global issues. He also addressed the Pakistan-Turkiye Business and Investment Forum, engaging with leading investors, companies, and business leaders from both nations, urging them to enhance cooperation in key economic sectors.

Erdogan stated, “Turkish investors will be encouraged to engage more in Pakistan and develop flagship projects.” He also noted the growth in military dialogue and cooperation in the defence industry, which has positively impacted trade and investment relations. Both sides reaffirmed their commitment to advancing projects and exploring potential areas of cooperation, including procurement, sales, and joint manufacturing. President Erdogan expressed confidence that the signed agreements would benefit both countries and the broader region.

Prime Minister Sharif addressed the Pakistan-Turkiye Business Forum, reiterating the pledge to achieve a bilateral trade volume of $5 billion. He acknowledged the progress to be made, stating, “We had committed that together, we will achieve a target of $5bn volume in bilateral trade, but unfortunately, it is a long way to go.” He emphasized the importance of translating the signed MoUs and agreements into concrete action and pledged his full support in this endeavour.

Prime Minister Sharif also addressed concerns raised by some Turkish investors, apologizing for any “undue inconvenience” they may have experienced and assured Turkish investors of his commitment to facilitating their investments and business activities in Pakistan.