KARACHI: Increase in duties on Pakistan’s exports by Turkish authorities drastically reduced the country’s outbound shipments to Turkey, a senior industry official said on Wednesday, stressing need for free trade agreement (FTA) between the two countries to improve bilateral trade.
Vice President Mazhar Ali Nasir of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said export of Pakistan to Turkey was $873 million in 2011, but it fell to $323 million in 2017, whereas export of Turkey to Pakistan amounted to $214 million in 2011, which rose to $352 million in 2017.
“Turkish authorities increased duties on Pakistani exports from six to 24 percent, which is a great barrier and caused a drastic reduction in export of Pakistan to Turkey,” a statement quoted Nasir as saying. He was meeting with Turkish Consul General who visited FPCCI.
FPCCI vice president said Pakistan and Turkey are time-tested friends and their economic ties are based on longstanding and deep-rooted bilateral relationship providing economic and political support to each other.
“There are tremendous opportunities and trade potential between both the countries which can be exploited by the help of FTA,” he said. “Unfortunately, the bilateral trade volume has decreased to $675 million in 2017 from more than a billion dollar in 2011.”
Nasir lamented that Turkey awarded trade incentives and tax concessions to various countries except Pakistan. Pakistan and Turkey are also active members of Economic Cooperation Organisation (ECO) and both agreed on implementation of various concessions in duties for enhancement of regional trade.
Vice president FPCCI said Islamabad-Tehran-Istanbul cargo train should be made financially viable for trade promotion. He also suggested early implementation of ECO visa sticker scheme to facilitate the businessmen of all ECO nations to enhance business relations and people to people contact.
Nasir called for a joint business council meeting between chambers of both the countries to discuss the impediments and bottlenecks of FTA and find solutions to remove all non-tariff barriers.
