Pakistan, Turkey to sign FTA next week to bolster current trade

Pakistan and Turkey to tap the massive potential of bolstering trade between the two countries will sign a free trade agreement framework on Tuesday, said Turkish Ambassador to Pakistan Sadik Babur Girgin on Friday.

The current trade between the two countries stands at $600 million, but after signing the agreement it has the potential to touch $2 billion mark. The current balance of trade is in favour of Pakistan.

Turkish Economy Minister will visit Islamabad to sign the agreement between the two countries, which have very close cooperation in diverse fields.

The framework agreement will result into free trade agreement, which was expected to be signed before the end of the current year said the diplomatic sources in the embassy.

Sources said that it was in February last year when the 4th meeting of Turkey-Pakistan High Level Cooperation Council was held in Islamabad under the chairmanships of Prime Minister of Turkey Ahmet Davutoglu and Prime Minister Nawaz Sharif, which had decided to begin negotiations of a comprehensive Free Trade Agreement between the two countries,.

Pakistan and Turkey had been negotiating the FTA for quite some time and the first round of talks between their officials was held in Ankara in October last year to discuss the details of the agreement.

During a recent visit by a Turkish business delegation to the Karachi Chamber of Commerce and Industry its members had strongly voiced for signing an FTA between the two countries. The members of the delegation expressed the hope that such an accord could spur joint ventures, besides increasing trade, as it would help lower the current high Customs duties between the two sides.

Pakistan mainly imports textile, machinery, telecommunication equipment, TV, cameras and radar apparatus, while Turkey’s imports from Pakistan included textile yarn, cotton, woven fabrics, apparel and clothing accessories, plastics and organic chemicals.