A preferential trade agreement is signed by Pakistan and Turkiye.

             A Preferential Trade Agreement (PTA) between Pakistan and Turkiye was signed on Friday to increase trade between the two nations.

 

At a ceremony conducted in the prime minister's office in Islamabad, the PTA was signed in front of the Prime Minister, Shehbaz Sharif. The agreement was signed by Syed Naveed Qamar, minister of commerce, and Dr. Mehmet Mus, minister of trade, both of Turkiye.

 

The PTA, also known as the Trade in Goods Pact, contains extensive clauses on bilateral safeguards, exclusions for the balance of payment, dispute resolution, and periodic revision of the agreement.

 

The deal was described as "a tremendous occasion and a milestone" in the history of relations between Pakistan and Turkiye by Prime Minister Shehbaz.

 

He recalled how the agreement was signed after his May visit to Turkiye thanks to the tireless efforts of the ministries in both nations. He claimed that there was a lot of commercial potential between the two nations and expressed optimism that the agreement would make it easier to further explore trade possibilities in many industries.

 

The prime minister promised that Pakistan and Turkiye would keep advancing their bilateral ties. Dr. Mehmet Mus, the minister of trade for Turkiye, said the event was a crucial turning point that will help to deepen and broaden commercial connections.

 

He claimed that it was difficult to accommodate the demands of all parties involved. He did, however, emphasize that perseverance and small steps were what ultimately resulted in the agreement.

 

He expressed his gratitude to Prime Minister Shehbaz for taking the initiative that resulted in the agreement's completion for the benefit of the two nations and to strengthen ties between their business groups.

 

Syed Naveed Qamar, Pakistan's minister of commerce, predicted that the PTA between Pakistan and Turkiye will create new opportunities to expand bilateral trade in a variety of areas. He added that Pakistan was eager to cooperate with Turkiye on a Free Trade Agreement (FTA).

 

To improve trade and investment connections between the nations, he emphasized the importance of increasing business-to-business interaction.

 

In the deal, Turkiye has provided Pakistan with reductions on 261 tariff lines, including important goods for Pakistan's export interests in the industrial and agricultural sectors.

 

The PTA will aid in the medium-term strategic objective of $5 billion in bilateral trade.

 

Both parties acknowledge that they can progress toward a more extensive arrangement once the original agreement generates goodwill and financial rewards for both parties.

 

Pakistan now has access to 261 tariff lines through the PTA. These exports from Pakistan to other countries total $5.1 billion. The total value of these imports into Turkiye is $7.6 billion.

 

On 130 tariff lines, Pakistan has made concessions to Turkiye. These exports represent $23 billion (12 percent of all exports from Turkiye). Global imports of these goods into Pakistan total $6 billion.

 

In addition to non-traditional industries like seafood, processed agricultural products, rubber tubes, and tyres, plastics, and engineering goods, Pakistan has acquired market access in traditional industries including leather, rice, dates, mangoes, cutlery, and sports goods.

 

The framework agreement between Pakistan and Turkiye was signed in 2016 by Khurram Dastagir, Pakistan's then-minister of trade, and Mustafa Elias, Turkiye's then-minister of the economy.

 

By establishing a Free Trade Area, the framework agreement prepared the foundation for a gradual liberalization of commodities, services, and investment.

 

By the framework agreement, a joint scoping study was carried out to determine the areas in which both parties may advance in lowering trade tariffs.

 

In the fiscal year 2021–2022, Pakistan and Turkiye had total trade of $883 million, with Pakistan exporting $366 million to that nation and importing $517 million from it. Turkiye will benefit from the trade balance, which will be negative by $151 million in 2021–22.