Pakistan, Turkiye set to sign MoUs on trade, military cooperation

Pakistan and Turkiye will sign eight Memorandums of Understanding (MoUs) related to trade, information media exchange, military cooperation, and healthcare on Thursday.

Turkish President Recep Tayyip Erdogan arrived in Islamabad on Wednesday night on a two-day visit to the country.

Erdogan and Pakistan Prime Minister Shehbaz Sharif will co-chair the 7th session of Pakistan-Turkiye High-Level Strategic Cooperation Council (HLSCC) on Thursday.

The HLSCC — the highest decision-making forum between Pakistan and Turkiye — provides strategic direction for strengthening bilateral relations. It operates through multiple Joint Standing Committees covering trade, investment, banking, finance, defense, energy, agriculture, IT, health, and education.

In addition to HLSCC, both countries' investors will also interact in a B2B session on Thursday and a panel discussion on 'Investing in Growth: Turkish Business Success and Future Potential in Pakistan'.

The chief executive of the Trade Development Authority of Pakistan (TDAP) as well as secretary of the Special Investment Facilitation Council will brief Turkish investors on trade opportunities in Pakistan whereas the Turkiye Presidency Investment office shall also give a presentation on investment opportunities in Turkey.

Officials toldNukta that President of Foreign Economic Relations Turkiye, Federal Minister for Commerce Jam Kamal, Minister for Trade for Turkiye Dr Omer Bolat, PM Sharif and President Erdogan shall also give speeches in the Pakistan-Turkiye Business Forum.

Pakistan-Turkiye bilateral trade

Officials told Nukta that Pakistan and Turkiye are expected to finalize agreements to expand economic cooperation, particularly in trade and investment, during the president's visit.

In fiscal year 2023-24, total trade between Pakistan and Turkiye amounted to $543.4 million. Pakistan's exports to Turkiye were valued at $298.78 million, while imports from Turkiye were $244.63 million.

The total trade between both countries was recorded at $643.73 million in FY18, $673.94 million in FY19, $617.91 million in FY20, $749.12 million in FY21, $882.53 million in FY22, and $670.89 million in FY23.

Officials said reasons for decline in bilateral trade between Islamabad and Istanbul include banking issues and shipping connectivity.

In addition, both countries are also producing and competing in similar products such as agriculture, textiles, leather, and footwear due to which bilateral trade is not increasing.