Pakistan and Turkey are in discussions for a FTA. This will enable both countries to improve their trade balance.
The two sides would be exchanging provisional lists for a final agreement. They will holding discussions on agreement on goods, services and investment.
The free trade agreement is expected to enhance bilateral trade to ten billion dollars. Right now it amounts to 650 million dollars.
There will be an additional protocol to strengthen the protection available to Turkish investments in Pakistan.
Pakistan will get market space in the agriculture and pharmaceutical sectors in Turkey. Pakistan’s major imports from Turkey include manmade textiles, towels, steel structure, tanning and plastic chemicals, processed milk and whey. The country’s major exports to Turkey are denim, ethanol, cotton yarn, fabrics, garments, leather, carpets, surgical instruments, sports goods and chemicals.
The number of air flights between the two countries will be increased. A joint company will be set up to establish a manufacturing unit to produce locomotives in Pakistan.
A Turkey special economic zone will be set up provided Islamabad extends the logistical support. Pakistan has so far signed about half a dozen free trade pacts and except for the FTA with Sri Lanka, these agreements are working in favor of other countries.