April 11, 2019: Negotiations on Free Trade Agreement (FTA) between Pakistan and Turkey would be concluded in June, followed by formal agreement to boost bilateral trade cooperation in different potential areas between the two brotherly countries.
Pakistan would finalize FTA with Turkey, under the Pakistan Turkey Strategic Economic Framework (SEF) plan of action, said senior official of Ministry of Commerce and textile on Thursday.
He said Pakistan and Turkey had agreed for formalizing a Pak-Turkey Strategic Economic Framework (SEF) during the Prime Minister Imran Khan’s visit to Turkey in January this year and the committee was also formed to finalize the draft of SEF.
After the approval of the Prime Minister, the draft of SEF was sent to Turkey on February 20.
Through the SEF, Pakistan would get tariff free market excess in potential market of Turkey to increase the bilateral trade between the two countries.
The senior official said Pakistan and Turkey can increase bilateral trade in the near term to $6,000 million from the current level of $598 million.
He said Pakistan’s top 20 high-potential exports can go up from $400 million to $2,600 million while Turkey’s top 20 high-potential exports to Pakistan can rise from $200 million to $2,600 million.
He said the country’s major exports to Turkey are denim PET, ethanol, cotton yarn, fabric and rice, garments, leather, carpets, surgical instruments, sports good, chemicals.
After signing a new FTA, both the countries would be able to improve their trade balance, he added.
He said that after the finalization of bilateral FTA, Pakistan would get market space in agriculture and pharmaceutical sector in Turkey.
He informed that Pakistan’s major imports from Turkey included man-made textiles, towels, steel structure, tanning and plastic chemicals, processed milk and whey.
He said that priority of the government was to promote trade liberalization for searching new potential markets in different parts of the world to increase the country’s trade.