ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Ministry of Commerce to set specific targets, along with a clear mechanism and milestones, to progress toward achieving the longstanding goal of $5 billion in annual bilateral trade with Turkiye, well-informed sources told Business Recorder.
Despite repeated commitments at the highest levels to increase trade, progress has remained limited— even though the Trade in Goods Agreement between Pakistan and Turkiye has been in effect since May 1, 2023.
Under this agreement, Pakistan has secured preferential access to the Turkish market across 261 tariff lines, covering both traditional and non-traditional sectors such as leather, rice, dates, mangoes, cutlery, sports goods, seafood, processed agricultural products, rubber tubes and tyres, plastics, and engineering goods.
Pakistan, Turkiye reaffirm commitment to boost ties, target $5 billion trade volume
In return, Turkiye has been granted concessions on 130 tariff lines, including items such as black tea, processed food products and flavourings, industrial raw materials, machinery parts, and electronic equipment components.
Both countries have set a strategic medium-term goal of enhancing bilateral trade to $5 billion, as part of their broader economic partnership. A key step in this direction was the Framework Agreement for Establishing a Free Trade Area, signed on March 22, 2016, expressing mutual commitment to gradually liberalise trade in goods.
Pakistan had undertaken extensive negotiations on the Trade in Goods Agreement in consultation with public and private stakeholders. The agreement represented a major breakthrough in Pakistan-Turkiye economic relations and was a central focus during Prime Minister Shehbaz Sharif’s visit to Turkiye from May 31 to June 2, 2022.
On July 7, 2025, during a meeting to review bilateral ties with Turkiye, the Prime Minister issued a series of decisions and directives to relevant ministries and departments.
Ministry of Commerce and Ministry of Economic Affairs have been directed to propose date of next Joint Ministerial Commission meeting in August 2025 instead of September 8-9, 2025. Ministry of Defence (Aviation Division) will arrange a small meeting to discuss outsourcing of airports to Turkish firm.
Pakistan’s Ambassador in Ankara to follow up PM’s discussion with Turkish President regarding to G2G agreement with regard to world-class Turkish Consultant firm for Jinnah Medical Complex and Danish University. He would also pursue cooperation of ship-breaking industry with the Turkish firms.
Petroleum Minister Ali Pervaiz Malik has been directed to follow up with a Turkish company on both offshore and onshore exploration in Pakistan.
Prime Minister has directed Ministry of Railways to continue active follow up with Turkish side on the Istanbul-Tehran-Islamabad Railway Project.
Azad Jammu and Kashmir Government has to allot at least 20 acres of land to MAARIF Foundation preferably in Muzaffarabad or in Mirpur if acceptable to Turkish side.
Ambassador of Pakistan in Ankara has to pursue with Turkish firms GIB for a G2G arrangement with FBR and developing a digitised cargo Tracking System. Advisor to PM has to send a letter to Ambassador in this regard.
Pakistan National Shipping Corporation will give a presentation to the Prime Minister by National Logistic Cell (NLC) after Deputy Prime Minister has seen it.
Copyright Business Recorder, 2025