Signed on 12 August 2022 in Islamabad, the Turkey Pakistan Trade Agreement on Goods has established guidelines for determining the preferential origin of goods in trade. The Turkish Ministry of Commerce issued a regulation on this matter which has now been published in the Official Gazette and is in effect. The pact was approved by presidential decree on 24 March 2023. The agreement includes a definition of “originating products” as those manufactured in one of the party countries and outlines procedures and principles for administrative cooperation in the Protocol on Administrative Cooperation Methods.
Pakistan Turkey Relations
Turkey’s relations with Pakistan have been shaped on the basis of close friendship and brotherhood since the establishment of Pakistan as an independent state on 14 August 1947. In 2022, the 75th anniversary of the establishment of diplomatic relations between Turkey and Pakistan was celebrated. Although Turkey and Pakistan are geographically separated from each other, they maintain close relations and cooperation in many fields such as politics, economy and defence due to their historical ties of brotherhood based on common Muslim religion.
Economy And Trade
Considering that the current trade volume of Turkey and Pakistan does not reflect the potential of the two countries in terms of population and economic size, steps are taken to increase economic cooperation and investments. Trade delegations frequently visit each other. The bilateral trade volume of Turkey and Pakistan was $675 million as of 2017. Most of the imports from Pakistan to Turkey are cotton fabrics. The main imported products include cotton yarn, ethyl alcohol, leather and leather clothing, knitted gloves and ready-made clothing products. Turkey mostly exports electrical equipment for telephone and telegraph, rebars, sanitary towels and diapers, electrical transformers, cotton weaving, textile machinery, cartridges and bullets, machines with specific functions and rubber tires to Pakistan.
Investments of $2 Billion By Turkish Firms In Pakistan
Turkish companies have invested approximately $2 billion in Pakistan, primarily in the construction sector where they have undertaken projects worth over $1.7 billion. Both nations see promising opportunities for collaboration in areas such as telecommunications infrastructure, ports, airports, railways, textile and export-oriented industries, services, and agriculture. Sectors such as wood furniture, agricultural applications, vehicle spare parts, air conditioning and refrigeration systems, televisions, PVC pipes, textile machinery, software, and shoe-making are considered ideal for mutual partnership between Turkey and Pakistan.
Defence Trade Cooperation
Turkey and Pakistan are actively engaged in military cooperation through procurement, research and development, and other related activities. The two nations regularly exchange visits between military officials and are working on several defence projects together.