Pak-Turk FTA under Strategic Economic Framework to be signed by June

ISLAMABAD: The Free Trade Agreement (FTA) between Pakistan and Turkey under the Pakistan-Turkey Strategic Economic Framework (SEF) plan of action is likely to be signed by mid of June this year.

The decision in this regard was undertaken after the conclusion of numerous rounds of negotiations between the two sides.

A senior official in ministry of Commerce informed that, “during the last round of negotiations the two sides agreed on a final list of tariff lines and Turkey was also willing to provide duty free access to Pakistani textile products in its market.”

“The dialogue between Pakistan and Turkey will reportedly conclude in June which will then be followed by a final agreement to boost bilateral trade,” he added.

The proposed sectors for an enhanced cooperation between the two brotherly countries include textile, tourism and culture, investment in industrial cooperation, auto industry, agriculture, banking and finance.

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Turkey has also agreed on provisioning Pakistan with the lowest tariff lines on bilateral trade.

The official further revealed that, Turkey also agreed to a grant of a Generalized scheme of preference (GSP).

Both sides have agreed on increasing business to business relations for enhancing economic cooperation between business communities of the countries.

A Memorandum of Understanding (MOU) between boards of investment of Turkey and Pakistan for cooperation and facilitation in local Special Economic Zones (SEZs) will also be finalized, the official elaborated.

Pakistan’s major exports to Turkey included denim PET, ethanol, cotton yarn, fabric, rice, garments, leather, carpets, surgical instruments, sporting goods, and chemicals.

Pakistan’s top high-potential exports can go up from $400 million to $2.6 billion after the agreement, while Turkey’s top high potential exports to Pakistan can increase to $2.6 billion from $200 million.