TUESDAY NOVEMBER 01: Currency swap deal to be finalised: Zardari, Gul hold talks

ISTANBUL: President Asif Ali Zardari and his Turkish counterpart Abdullah Gul on Monday agreed to finalise the currency swap agreement between the two countries this week to further deepen, broaden and strengthen their partnership in every field.
The two Presidents also reviewed progress on the implementation of the ECO Trade Agreement (ECOTA), Gul Train, the High Level Co-operation Council (HLCC) between the two countries and the setting up of Techno Parks in Pakistan in collaboration with Turkish universities in their wide-ranging bilateral talks in Istanbul on Monday, on the sidelines of trilateral summit on Afghanistan.
President Zardari was assisted in the talks by Secretary General to the President M. Salman Farooqui and Pakistan's Ambassador in Turkey Muhammad Haroon Shaukat, while Turkish Ambassador in Pakistan M. Babur Hizlan assisted President Gul. Spokesperson to the President Farhatullah Babar giving the details of the bilateral talks said that the currency swap agreement will enable the traders and businessmen of the two countries to trade in their respective currencies without drawing from their dollar-based foreign exchange reserves.
This will reduce pressure on the foreign exchange reserves of the two countries and give a quantum jump to the bilateral trade between the two countries he said. Farhatullah Babar said the President has been looking at boosting Pakistan's trade as a means to generate economic activity in the country for job creation to wean the youth away from extremists and militants.
As Pakistan's efforts to seek increased market access to European and US markets are still underway President Zardari has turned to regional markets to boost Pakistan's trade he said. Similar currency swap agreements are also envisaged with some other countries in the region, he said.
During the talks, President Zardari said the level of bilateral trade and investment between the two countries remains far below the real potential and there was a need to increase bilateral trade to the level which commensurate with the level of their political relationship.
The existing bilateral trade of one billion dollars should be doubled to two billion dollars next year, the President opined. President Zardari said with a view to achieve this target, there is a need to remove trade barriers and ease visa restrictions. The signing of an agreement on currency swap arrangement is an important step in trade facilitation. The President also called for fast-tracking the conclusion of Pakistan-Turkey Preferential Trade Agreement (PTA).
The President said that it is an encouraging sign that private sectors are collaborating in the energy, construction, food processing and rubber industry, adding, "We would like to see further joint ventures and investment in key sectors such as infrastructure, engineering, energy, agriculture, telecommunications and mining." Pakistan would welcome Turkish investment in hydro-power generation, alternate energy and rental thermal plants, he said. The President also called for opening of more Turkish bank branches in Pakistan and vice versa.
The President called for the implementation ECO Trade Agreement (ECOTA) and said that Pakistan was ready to work with Turkey. He thanked President Abdullah Gul for his personal interest in the "Gul train" project which would revolutionise cargo and transit facilities between the two countries and called for taking all the necessary steps to fast-track the implementation of this key initiative.
He said Pakistan Railways would provide full support to the newly established private company TOBB Logistics Inc for operating and marketing trains in an efficient manner. Referring to co-operation in education, he said Pakistani universities are ready to establish "Techno-Parks" in Pakistan in collaboration with Turkish universities.
President Zardari said he was greatly encouraged by the successful outcome of the inaugural session of the High Level Co-operation Council (HLCC) and called for an effective follow-up for timely implementation of the decisions taken at its first session. The President said, "We are looking forward to welcoming Prime Minister Erdogan's visit to Pakistan later this year to co- chair the second session of High Level Co-operation Council."