ISLAMABAD: Pakistan and Türkiye on Monday set the goal of enhancing bilateral trade volume to $5 billion, vowing to hold a High-Level Strategic Cooperation Council (HLSCC) meeting in Islamabad in the “very near future.”
Turkish Foreign Minister Hakan Fidan arrived in Islamabad on Sunday on a two-day official visit amid Pakistan’s efforts to boost foreign investments and better manage its $350 billion economy.
The South Asian nation has seen a flurry of foreign visits in recent weeks, including by the Iranian president, Saudi foreign minister, a delegation of top Saudi companies as well as officials from Qatar, China, Japan and Central Asian countries, among others.
On Monday, Pakistan and Turkiye engaged in delegation-level talks focusing on trade, investment, connectivity and defense ties, with Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar representing Pakistan and Foreign Minister Fidan leading the Turkish delegation.
“We are taking measures to increase our trade to reach $5 billion and planning to hold the next session of the bilateral trade talks in the coming days,” Dar said at a joint media stakeout, without specifying a time period in which the new trade target would be achieved.
“We are planning to hold an HLSCC meeting in Islamabad in the very near future which would carry out a comprehensive review of our ongoing cooperation, including a holistic review of our bilateral, strategic, and economic framework.
“With each passing day, trade, investment and defense relations, as well as people-to-people contacts constitute the basis of our ongoing bilateral cooperation.”
Speaking at the press conference, Fidan said Pakistan held “major strategic and economic importance” due to its location bordering China and the Arabian Sea, positioning it at a junction of energy-rich countries and major economies.
He endorsed Dar’s statement that current bilateral trade volume of $1 billion did not reflect potential and should be enhanced to $5 billion.
Fidan said both countries have taken a principal decision in order to broaden relations not only in trade but also in defense.
“Pakistan is our strategic partner, and our cooperation supports regional stability and safety as well. I would like to once again highlight that we stand with Pakistan in their combat against terrorism.”
Dar also highlighted the history of Pak-Türkiye collaboration on defense projects.
“Pakistan and Turkiye are working on various joint ventures and continue to support each other to defend our territorial sovereignty and fight against terrorism in all its manifestations,” the Pakistani official added. “Our two countries have always supported each other on core issues and have assisted each other in the fight against terrorism.”
The Turkish foreign minister later held a separate meeting with Prime Minister Shehbaz Sharif, wherein the latter stressed the need to achieve the bilateral trade target of $5 billion in the next three years.
“He [Sharif] emphasized to undertake concerted efforts for achieving the bilateral trade target of $5 billion in the next three years as already agreed by the leadership of the two brotherly countries,” PM Sharif’s office said in a statement.
The Pakistani premier invited Turkish companies to further expand their investment portfolio in Pakistan.
“Turkish companies may consider relocating their industrial units to Pakistan,” Sharif was quoted as saying.
Pakistan narrowly averted default last summer, and its economy has stabilized after the completion of the last IMF program, with inflation coming down to around 17 percent in April from a record high 38 percent last May.
It is still dealing with a high fiscal shortfall and while it has controlled its external account deficit through import control mechanisms, it has come at the expense of stagnating growth, which is expected to be around 2 percent this year compared to negative growth last year.
The South Asian is also in negotiations with the IMF for a new, longer-term program of at least $6 billion.