Pakistan, Turkiye expand trade pact, aim for $5bn bilateral trade

Out of the record 34 memorandums of understanding (MoUs) signed during Turkish President Recep Tayyip Erdogan’s visit to Pakistan, as outlined in the Pakistan-Turkiye joint statement, the most significant outcome is the decision to expand the list of products benefiting from preferential tariffs under the Trade in Goods Agreement (TGA) between the two countries, Geo News was told on Saturday.

Both sides have agreed to include new products in the TGA concession lists and draft an agreement covering trade in services, digital trade and investment facilitation.

In his conversation with Geo News, Pakistan’s Ambassador to Turkiye Yusuf Junaid said that the record number of MoUs and the expansion of the TGA will accelerate efforts to achieve the $5 billion bilateral trade target between the two nations.

It has also been agreed that technical discussions to incorporate new items under the TGA will commence within two months and be completed within a year.

Junaid added that progress on the TGA was reviewed during the talks on Friday, and both sides expressed their commitment to ensuring its success. The TGA came into effect on May 1, 2023.

To facilitate trade, it has been decided to establish an electronic data exchange system for verifying origin certificates used in cross-border trade between Turkiye and Pakistan. Another landmark MoU was signed between Turk Eximbank and Pakistan Eximbank, focusing on cooperation in third countries and the exchange of expertise and information between the two financial institutions.

Both countries have resolved to make the Islamabad-Tehran-Istanbul (ITI) train and road corridor fully operational to enhance trade and address existing bottlenecks. It was also agreed to arrange a visit by the Turkish Electricity Distribution Corporation (TEDAS) to Pakistan to assist in the development of the country’s power sector.