Preferential tariffs list upgrade to boost Pakistan-Turkiye trade as $5bn target eyed

The landmark Pakistan-Turkiye agreement to expand preferential tariff lists under the Trade in Goods Agreement (TGA) is set to boost imports and exports by leaps and bounds, a joint statement said Saturday, as both nations pursue an ambitious target.

The most important of the 24 memorandums of understanding (MoUs) signed during Turkish President Recep Tayyip Erdogan’s visit, the latest agreement will broaden TGA concessions list, setting the ground for striking deals on services, digital trade, and investment facilitation.

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

Technical discussions to incorporate new products under the TGA will commence within two months and be finalised within a year, according to the agreement.

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, an electronic data exchange system will be established to verify origin certificates used in cross-border trade between Turkiye and Pakistan.

Another landmark MoU signed between Turkish and Pakistan EXIM banks focuses on cooperation in third countries and the exchange of expertise and information between the two financial institutions.

Both countries have also resolved to make the Islamabad-Tehran-Istanbul (ITI) train and road corridor fully operational to enhance trade and address existing bottlenecks.

To offer technical assistance for Pakistan's power sector development, a visit by the officials of the Turkish Electricity Distribution Corporation (TEDAS) has also been confirmed.

President Erdogan’s historic visit to Pakistan on Thursday saw the signing 24 memorandums of understanding (MoUs), protocols and cooperation agreements across defence, energy, trade, agriculture, and technology to further enhance cooperation and cement relations at a ceremony held at the Prime Minister’s House.