Islamabad, 12 August 2022 (TDI): Pakistan and Turkiye successfully concluded the Preferential Trade Agreement.
The Trade in Goods Agreement was signed in the Prime Minister’s Office by Pakistan’s Minister of Commerce, Syed Naveed Qamar, and Turkiye’s Minister of Trade, Mehmet Mus.
The Turkish Minister of Trade had arrived in Pakistan on Friday for the signing of the agreement.
The Turkish Trade Minister arrived in Pakistan for signing the PTA. Commerce Minister Syed Naveed Qamar received him at the airport.
— Ministry of Commerce (MOC) (@mincompk) August 12, 2022
The trade agreement was the main topic of discussion during Prime Minister of Pakistan Shahbaz Sharif’s recent visit to Turkiye in May 2022.
During the visit, the leaders of both countries expressed a strong desire to expedite and complete the negotiations by July 2022.
Response of Pakistan’s Prime Minister on the signing of the agreement
The Prime Minister of Pakistan took a particular interest in the matter, and the agreement was completed in a timely manner on his orders.
He congratulated Minister for Commerce Syed Naveed Qamar on his excellent leadership in concluding the agreement.
He also praised the efforts of Pakistan’s Ministry of Commerce and Turkiye’s Ministry of Trade. The Ministry worked expeditiously following President of Turkiye, Recep Tayyip Erdogan’s directives.
Response of the Minister of Commerce
Syed Naveed Qamar, Minister of Commerce, hoped the agreement would pave the way for increased trade and investment between the two countries and strengthen their friendly ties.
Significance of the agreement:
The agreement is a significant step forward in improving both countries’ economic relations.
Under the terms of the agreement, Pakistani exporters will have access to the Turkish market in 261 tariff lines covering both agriculture and industry.
Pakistani exporters will gain market access in traditional industries such as leather, rice, dates, mangoes, cutlery, and sporting goods.
Furthermore, exporters will gain market access in various non-traditional industries, including tyres, fans, batteries, glass, ceramics, plastics, fisheries, processed agriculture, razors, furniture, and base metals.
The Turkish import market in the areas covered by the agreement is worth $7.6 billion, indicating a great opportunity for Pakistani exporters to grow their market share.
The execution of this agreement will boost Pakistan’s exporters’ efficiency and offer them stronger access to the market than regional competitors.
Pakistan already exports $5.1 billion to other nations in the products covered by the agreement. It is critical that exporters take advantage of the agreement’s concessions and boost their exports to Türkiye.
The Ministry of Commerce conducted comprehensive talks with the private sector during the negotiations to ensure the inclusion of the local industry input in the agreement.
Pakistan’s goods exports reached a record high of $31.76 billion in fiscal year 2022, and it is a primary policy goal of the Ministry of Commerce to foster sustained export growth with improved market access and successful domestic policy.
Both countries have stated their willingness to broaden the scope of the agreement in the future to include more products and deeper market access to investment and services.
