The possibilities of enhancing cooperation in the areas of bilateral trade, investment and business between Pakistan and Turkey were discussed at the Board of Investment (BoI) Tuesday. A Turkish delegation led by Turkey-Pakistan Business Council Chairman Atilla D Yerlikaya called on BoI Chairman Naeem Y Zamindar and discussed matters of mutual interest for both the nations with Zamindar and senior management team of the board.
The delegation discussed the possibilities of enhancing cooperation in the areas of bilateral trade, investment and business development relations between the two countries. Naeem Y Zamindar mentioned that the government is encouraging the investors to invest in Pakistan, especially in the nine special economic zones (SEZs) identified in CPEC and Pakistan is open for all companies around the world to set up industries in these zones to transfer technology and start manufacturing in Pakistan. For Pakistan, the development in trade and industry is the main gain from the CPEC as a driving force for economic growth and taking the fruits of the CPEC to the lesser developed regions of Pakistan.
The industrial cooperation is the component of the CPEC in which the sustainability of whole CPEC project is dependent. The role of private sector is very crucial and important in this phase of the CPEC. To upscale the investment and spur industrialization through creating new industry clusters, SEZ law has been formalized to meet the global challenges of competitiveness. SEZ framework facilitates creation of industrial clusters with liberal incentives, infrastructure and investor facilitation services to enhance productivity and reduce cost of doing business.
The BOI chairman further added that Pakistan offers exemption from customs duties and taxes for all plants & machinery imported into Pakistan as well as an income tax holiday for 10 years for the SEZs. He invited the Turkish investors to invest in all sectors of Pakistan specifically in agriculture, machinery, pharmaceutical and mining to further boost the investment and trade relations between the two brotherly countries. Pakistan due to its strategic location, cheap labour and cheap raw material outclasses other countries. He further added that Pakistan needs a shift from resource-based and low technology exports to the adoption and development of medium- and high-technology productions, and technological sophistication. Almost 80 percent of Pakistan's exports are resource-based items.
The current investment by Turkish companies such as $500 million by Coca Cola since 2010 and $300 million by Arcelik (Dawlance) were highlighted during the meeting. During the meeting, Yerlikaya highlighted the importance of Free Trade Agreement between Turkey and Pakistan, which is expected to have a high impact on trade flows as well as bilateral investments.
Yerlikaya mentioned that a comprehensive Free Trade Agreement covering commodity and services trade as well as investments will definitely deepen bilateral economic cooperation. Mutually agreed exceptions for certain industries can be identified within the scope of a comprehensive agreement. He further said that he strongly believes that both the business communities have to contribute to these negotiations in order to define investment barriers.
Senior Turkish business representatives from Anadolu Group, Zorlu Holding, Arcelik and Albayrak along with other representatives from health, construction, services and industries, accompanied Yerlikaya. They shared the profiles of their companies in Turkey with the BOI chairman and informed that they are planning to enhance their investment keeping in view the growth potential in the country.
The Turkish-Pakistan Business Council operates under the umbrella of Foreign Economic Relations Board of Turkey (DEIK), which is a private sector institution aiming to pave way for development of Turkey's economic, commercial, industrial and financial relations with foreign countries and international business communities.