The landmark agreement between Pakistan and Turkiye to expand preferential tariff lists under the Trade in Goods Agreement (TGA) is expected to significantly boost imports and exports. Among the 24 Memorandums of Understanding (MoUs) signed during Turkish President Recep Tayyip Erdogan’s visit, this agreement is the most crucial, paving the way for deals on services, digital trade, and investment facilitation.
$5 Billion Bilateral Trade Target
Pakistan’s Ambassador to Turkiye, Yusuf Junaid, stated that the record number of MoUs and the expansion of TGA would accelerate efforts to achieve the $5 billion bilateral trade target. According to the agreement, technical discussions to incorporate new products under the TGA will begin within two months and conclude within a year.
Trade Facilitation Measures
To facilitate cross-border trade between Pakistan and Turkiye, an electronic data exchange system will be established to verify origin certificates.
Banking and Financial Cooperation
Another key MoU was signed between the EXIM banks of Turkiye and Pakistan, focusing on cooperation in third countries and exchanging expertise and financial information.
Islamabad-Tehran-Istanbul Trade Corridor
Both countries have resolved to fully operationalize the Islamabad-Tehran-Istanbul (ITI) train and road corridor, enhancing trade and addressing existing bottlenecks.
Energy Sector Collaboration
To provide technical assistance for Pakistan’s power sector, officials from the Turkish Electricity Distribution Corporation (TEDAS) will visit Pakistan.
Strengthening Bilateral Relations
During President Erdogan’s historic visit to Pakistan, a ceremony at the Prime Minister’s House saw the signing of 24 MoUs, protocols, and cooperation agreements across defense, energy, trade, agriculture, and technology, further solidifying ties between the two nations.
