ISLAMABAD: Turkish Ministers, accompanying Prime Minister Recep Tayyip Erdogan, have termed Pakistani bureaucracy, high taxes and customs tariffs as main obstacles to investment by Turkish companies. The top brass of Turkish delegation, sources said, had taken up the issues of Zurlu Energy Pakistan and Karkey Rental Power Plant with Prime Minister Syed Yousuf Raza Gilani.
Zurlo is in litigation with Hyderabad Electric Supply Company (Hesco) and Karkey has been quashed in the light of Supreme Court of Pakistan verdict and National Accountability Bureau (NAB) is pursuing it now. Turkish Minister for Environment and Urbanisation Erdogan Barraktar and Minister for Economy Zafer Caglyan, who met senior Commerce Minister Makhdoom Amin Fahim, expressed a keenness to invest in Pakistan but identified the bureaucracy for creating hurdles, taxation system and high tariffs as impediments.
Meanwhile Makhdoom Amin Fahim and Turkish Minister for Environment and Urbanisation Erdogan Bayraktar co-chaired the 14th session of Pak-Turkey Joint Ministerial Commission (JMC) in Islamabad on Monday. The two ministers agreed that the current volume of trade and investment was far below potential. They remarked that the two countries enjoyed brotherly relations and it was high time to utilise this potential in key areas of trade and investment.
Various proposals to enhance bilateral co-operation in the areas of trade and commerce, energy, banking and finance, railways and communication, culture and tourism, education and other like agriculture, health, science & technology and environment were presented in the meeting. The commission also reviewed the implementation status of decisions that were taken during 13th Pak-Turkey JMC.
The six joint working groups that were constituted in pursuance of decision of the first meeting of High Level Cooperation Council held in Ankara on 6-9 December, 2010, presented their relevant agenda in the meeting. Banking and Finance working group informed that many Turkish banks are interested to open their branches in Karachi, Lahore and Islamabad, in which one Turkish bank will start operation in Pakistan very soon.
Cultural cooperation working group revealed that 2013-14 will be celebrated as Pak-Turkish Cultural Year. In the same way, Energy Working Group highlighted Turkey's interest in providing technical and financial assistance for establishment of small hydropower projects in Punjab and construction of transmission lines.
Turkey will also assist in the formulation of regulatory framework and safety codes for coal based power generation. One Turkish company will start business in Petroleum sector in Pakistan very soon. Fourteen projects in power sector have been identified by energy working group that would be explored by Turkey and Turkey will also provide technical assistance in the field of geothermal energy resources and remote sensing.
Communication and Railways working group highlighted the potential areas of land roads, maritime communication and railways. A meeting is scheduled to be held on 25th June, 2012 for the finalisation of Pak-Turkey Road sector cooperation.
Turkey also showed interest an in Vessel Tracking System and Ship Repair & Building in Pakistan. Moreover, it was agreed that the existing public sector railway programme between Turkey and Pakistan will be shifted to private sector for its re-initiation.
Trade and Commerce working group revealed that Preferential Trade Agreement will further be explored. Trade will be diversified and investment will be promoted by both countries. A public awareness programme will be scheduled to accomplish currency swap system between Turkey and Pakistan, mentioned by Trade and Commerce working group.
The JMC will also finalise the MoUs/agreements in the field of solid waste management, archives, investment, urbanisation, transport and communication and renewable energy to be signed in the High Level Co-operation Council meeting to be held on May 22, under the leadership of Prime Ministers of the two countries. Later, Senior Commerce Minister discussed various specified matters regarding trade and economy with Turkish Minister for Economy Zafer Caglyan in another meeting in Islamabad on Monday.
The two ministers reiterated that Pakistan and Turkey were like twin brothers and it was time to enhance trade volume from millions to trillions. The Turkish Minister highlighted key concerns of Turkey regarding high taxes, custom duties and matters relating to port and shipping. He also highlighted the investment interest of different Turkish companies in Pakistan and their related requirements. The Senior Minister assured to address the said concerns and stressed the early operationalisation of Preferential Trade Agreement (PTA).