Türkiye ambassador for efforts aimed at boosting trade volume to US$5bn

KARACHI: Ambassador of Türkiye Irfan Neziroglu, while referring to a meeting between Türkiye President Recep Tayyip Erdogan and Prime Minister Shehbaz Sharif, stated that both leaders agreed on increasing the volume of trade between the two countries, hence, efforts were being made to improve the existing trade volume of US$1.2 billion to at least US$5 billion.

“In this regard, a high-level consultative strategic meeting will be held soon either in January or February next year in a frank environment to explore ways and means of how to effectively deal with barriers hindering trade between the two brotherly countries”, he informed while speaking at a meeting during his visit to the Karachi Chamber of Commerce and Industry (KCCI).

Türkiye Ambassador said, “Keeping in view the changing situation across the world, Türkiye and Pakistan must walk together as cooperation between the two countries has become a must. There is no other choice for both of us so the cooperation must strengthen in all fields. As your brothers, our doors are always open to you. We are always ready to do our best for the interest of our Pakistani brothers and sisters.”

He said, adding that Pakistan was not just a real friend but a real brother who has always fully supported Türkiye during difficult times. He ensured that he would work not only for the interests of Türkiye but also for those of Pakistan, aiming to strengthen bilateral mechanism between two countries in all fields, as strong Pakistan is in Türkiye’s interest.

He was of the view that although Türkiye and Pakistan have very good political and defense relations but when it comes to business, unfortunately, it was a little bit weak and below expectations which requires collective efforts from both sides whereas the Türkiye Embassy and its Consulates in Pakistan were always ready to fully facilitate those businessmen intending to improve trade ties with their Türkiye counterparts.

Türkiye Envoy said, “A workshop can be organized between the business communities of Pakistan and Türkiye to discuss trade barriers and explore solutions to the challenges both countries face. We are ready to share our expertise across all sectors of the economy. While we have faced economic difficulties in the past, Turkey has now become a major economic power, with significant expertise in industry and agriculture. On the other hand, Pakistan is strong in the IT sector. By learning from each other’s strengths, we can collaborate and grow together.”

Chairman BMG Zubair Motiwala, who joined the meeting via Zoom, emphasized that trade between Pakistan and Türkiye could increase five-fold. He highlighted that Turkey’s imports from around the world present a significant opportunity, and Pakistan could potentially replace many of those sources. “Turkey’s global exports are valued at $255 billion, while its global imports stand at $31.8 billion. This is where we see an opportunity for Pakistan to step in,” Motiwala added.

Identifying some of the key trade barriers, Motiwala specifically mentioned the need to review the anti-dumping duties imposed on certain goods from Pakistan. He said that Turkey imposes anti-dumping duty on denim to protect its domestic industry from unfair competition. However, he suggested that a more flexible approach to customs could help ease trade between the two countries.

“Turkey has a flexible customs regime for imports from other countries, so why not extend the same flexibility to Pakistan?” he asked and suggested that if not so then a quota system could be established to increase Pakistan’s export penetration into Turkey. “Our exports are currently very low; this year, we barely reached $350 million in exports to Turkey. To grow this, we need support,” he noted. Motiwala also pointed out that if Turkey is importing products from China, Pakistan has the potential to replace China in various sectors.

Motiwala further stated that while Pakistan imports a considerable amount from Turkey, there are still areas where Pakistan could capture more market share by expanding exports of various products, particularly towels and pharmaceuticals. “These are the sectors where there is significant room for growth in the Turkish market,” he added.

While Turkey is already a close friend of Pakistan, Motiwala stressed that this friendship would deepen further through more robust business deals. “Our relationship will strengthen as we increase trade and business ties,” he concluded while requesting the Ambassador to look into the possibility of holding a single-country exhibition of Türkiye at Expo Center Karachi.

Earlier, Senior Vice President Ziaul Arfeen, while welcoming the Turkish Ambassador, expressed that although Pakistan and Turkey have shown a strong desire for a sustainable and long-lasting Free Trade Agreement (FTA), a concrete agreement has yet to be realized. “The potential benefits of swiftly concluding the FTA talks are significant and could greatly enhance the existing volume of bilateral trade.” He emphasized that despite the close and brotherly ties between the two countries, bilateral trade has remained low and needs to be improved. The private sectors from both sides need to establish robust business connections to explore all potential areas of cooperation and deepen economic integration.

Highlighting Turkey’s Customs Union Agreement with the EU, he suggested that with Turkey’s assistance, Pakistan could export semi-processed raw materials to Turkey, where they can be further processed and exported to the EU market tax-free to not only boost Pakistan’s trade and exports but also enhance connectivity with the EU. He also mentioned that both countries could collaborate in agriculture by establishing food processing units, storage facilities, and advancements in livestock and biotechnology to increase value addition. “Organizing food festivals in each other’s markets and pursuing joint ventures could provide significant boost to the halal food sector”, he added.

Consul General of Türkiye Cemal Sangu, Chairman Businessmen Group Zubair Motiwala, Senior Vice President Ziaul Arfeen, Vice President Faisal Khalil Ahmed, Chairman Diplomatic Missions & Embassies Liaison Subcommittee Ahsan Arshad Sheikh, Former President Majyd Aziz and KCCI Managing Committee Members attended the meeting.

Copyright Business Recorder, 2024