Middle East

Pakistan, Turkey Sign Preferential Trade Agreement to Further Strengthen Bilateral Ties

Islamabad: Pakistan and its close ally Turkiye on Friday signed a preferential trade agreement aimed at unlocking market access worth US$7.5 billion for Pakistani goods.

The Commodity Trade Agreement’ was signed by Pakistan’s Commerce Minister Syed Naveed Qamar and Turkey’s Trade Minister Mehmet Mus at a ceremony held here at the Prime Minister’s Office.

The agreement is an important breakthrough in improving economic relations between the two countries, according to a statement.

Under the agreement, Pakistani exporters will be able to access Turkiye’s market with 261 tariff lines covering both the agricultural and industrial sectors, it said.

Turkey’s import market in the areas covered by the agreement has reached US$7.6 billion, highlighting the huge potential for Pakistani exporters to increase their market share, he said.

Pakistan already exports US$5.1 billion to other countries in products covered by the Pakistan-Turkey Trade in Goods Agreement, making it important for exporters to take advantage of concessions under the agreement to increase exports to Turkiye is.

The signing of this agreement will increase the competitiveness of Pakistani exporters and provide them with better market access than their regional competitors.

Prime Minister Shebaz Sharif, who attended the signing ceremony, said the agreement was a wonderful moment and milestone in the historic relationship between Pakistan and Turkey.

Early in the negotiations, the Department of Commerce conducted extensive consultations with the private sector to ensure input from domestic industry was incorporated into the agreement.

The trade deal was a high point on the agenda of Prime Minister Shabazz Sharif’s recent visit to Turkiye in May this year, and the leaders of both countries expressed a strong interest in facilitating and concluding negotiations by July 2022. rice field.

Prime Minister Sharif congratulated Commerce Minister Kamal for his excellent leadership in concluding the agreement and commended the efforts of the Pakistan Ministry of Commerce and the Turkiye Ministry of Trade. Tayyip Erdogan.

Kamal hopes the agreement will not only pave the way for further strengthening trade and investment between the two countries, but also strengthen the existing friendly relationship.

Pakistan’s merchandise exports hit a historic high of US$31.76 billion in fiscal year 2022, making promoting sustainable export growth through better market access and effective domestic policies a major focus of the Ministry of Commerce. It is a policy goal.

Cash-strapped Pakistan could face serious economic problems as its foreign exchange reserves are rapidly depleted amid rising external debt repayments.

The country faces serious external threats as the National Bank of Pakistan’s foreign exchange reserves fell to single digits despite an inflow of US$2.3 billion from China late last month, The Dawn said last month. reported.

Pakistan faces increasing economic challenges, including high inflation, declining foreign exchange reserves, widening current account deficit and currency depreciation.

With the current account deficit rising to US$13.2 billion in the first nine months and imminent foreign loan repayment requirements, Pakistan has decided to increase its foreign exchange reserves to $9 billion by June 2022 to avoid further depletion of its foreign exchange reserves. required US$12 billion in financial support from

https://www.siasat.com/pakistan-turkiye-sign-trade-preferential-agreement-to-further-bolster-bilateral-ties-2388938/ Pakistan, Turkey Sign Preferential Trade Agreement to Further Strengthen Bilateral Ties

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