Pakistan-Türkiye target $5bn trade

September 10, 2025 (MLN): Pakistan and Türkiye have committed to achieving a bilateral trade volume of $5 billion. 

The first in-person negotiations for a comprehensive Trade in Goods Agreement are set to begin in October 2025.

This ambitious target emerged from the 16th Pakistan-Türkiye Joint Ministerial Commission session, where both nations outlined concrete steps to more than triple their current trade relationship through the systematic implementation of a 24-sector cooperation framework.

Immediate Implementation Measures

Business-to-Business Linkages: Both countries have committed to deepening private sector engagement through structured business forums and matchmaking events.

This approach recognizes that sustainable trade growth requires strong commercial relationships beyond government agreements.

Digital Trade Facilitation: A comprehensive digitalization initiative will modernize trade processes, reducing paperwork and processing times.

This includes implementing electronic documentation systems and digital payment mechanisms to streamline cross-border transactions.

Customs Cooperation Streamlining: New protocols will eliminate bureaucratic bottlenecks that have historically hindered trade flows.

Simplified customs procedures, pre-clearance mechanisms, and risk-based inspection systems will be implemented to expedite the movement of cargo.

The trade enhancement strategy encompasses 24 key sectors, with particular emphasis on:

• Textiles and Manufacturing: Operationalization of the Pakistan-Türkiye Textile Technology Centre at NTU Faisalabad
• Energy Trade: Collaboration in renewables, hydrocarbons, and LNG
• Agricultural Products: Focus on livestock, irrigation technology, and digital farming solutions
• Information Technology: Joint IT Business Forum to facilitate technology transfer

Financial Infrastructure Development

Banking Sector Integration: Turkish banks are exploring expanded presence in Pakistan, providing enhanced financial services and trade financing options for businesses engaged in bilateral commerce.

Export-Import Bank Cooperation: Strengthened collaboration between both countries' Exim Banks will provide accessible financing for exporters and importers, addressing a crucial barrier to trade expansion.

Islamic and Digital Finance: Joint initiatives in Islamic banking and fintech solutions will cater to both countries' expertise in Shariah-compliant financial services.

Regional Connectivity Projects

ITI Railway Corridor: The expedited operationalization of the Islamabad-Tehran-Istanbul Railway Corridor will create a direct land route connecting South Asia with Europe, dramatically reducing transportation costs and delivery times.

TURPAK Transport Corridor: This proposed dedicated transport link will establish efficient cargo movement between the two countries, supporting the increased trade volumes envisioned in the USD 5 billion target.

Maritime Cooperation: Enhanced port development and ship recycling initiatives will leverage both countries' coastal advantages for sea-based trade.

Industrial Modernization

The partnership emphasizes technology transfer and joint research and development initiatives. Small and Medium Enterprise (SME) cooperation under the SMEDA-KOSGEB framework will support the backbone of both economies in accessing new markets and technologies.

An IT Business Forum will facilitate collaboration in software development, e-commerce platforms, and digital services trade. This represents a shift toward high-value service exports beyond traditional commodity trading.

Immediate Actions (October 2025)

• Launch of Trade in Goods Agreement negotiations
• Establishment of bilateral trade facilitation committees
• Implementation of digital customs systems pilot programs

Medium-term Objectives (2025-2026)

• Completion of major infrastructure projects
• Expansion of banking and financial services
• Launch of sector-specific trade promotion programs

Long-term Vision (2026-2027)

• Achievement of USD 5 billion trade target
• Full operationalization of transport corridors
• Comprehensive digital trade ecosystem

The $5 billion trade target represents more than a threefold increase from current levels, positioning the Pakistan-Türkiye economic relationship as a model for South-South cooperation.

This ambitious goal reflects both countries' confidence in their complementary economies and shared commitment to regional economic integration.

The comprehensive approach, spanning traditional trade facilitation to cutting-edge digital commerce, ensures that the partnership remains relevant for decades to come.

By addressing infrastructure, financing, and regulatory barriers simultaneously, both countries have created a framework for sustainable trade growth that extends beyond the immediate target.

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