Türkiye, Pakistan to turn diplomatic momentum into stronger trade ties

Türkiye and Pakistan, which recently played a leading role in facilitating an understanding as mediators in negotiations between Iran and the U.S., are now turning their intensive diplomatic engagement toward expanding economic cooperation, according to a report on Tuesday.

According to information obtained by Anadolu Agency (AA), Pakistani Prime Minister Shahbaz Sharif will pay an official visit to Türkiye on July 2-4, accompanied by ministers and business representatives.

Sharif, who will visit at the invitation of President Recep Tayyip Erdoğan, is scheduled to hold bilateral and delegation-level meetings, while a Türkiye-Pakistan Business Forum will also take place.

Against this backdrop, the two countries, which have significantly strengthened ties in recent years, particularly in trade, the economy, the defense industry and energy, are expected to elevate their cooperation to a new level.

During their talks, Erdoğan and Sharif will review political and diplomatic relations while placing particular emphasis on economic cooperation, the AA report indicated.

The business forum, attended by business leaders from both countries, will focus on the investment climate in Türkiye and Pakistan, sectors with strong growth potential, and bilateral trade and investment opportunities. Business-to-business meetings will also explore new avenues for cooperation.

The discussions are expected to center on four key areas: information technology and telecommunications, oil and precious minerals, a special economic zone planned to be allocated to Türkiye, and the privatization of Pakistan’s electricity distribution companies.

Ministers responsible for these investment sectors are also expected to participate in the forum.

Last week, Ankara said it would support Pakistan’s electricity privatization and power sector reform efforts through three newly signed cooperation agreements, with Turkish institutions set to provide expertise in transmission systems, electricity market operations, distribution monitoring and capacity building.

“We will share our experience to the fullest and do our best to support you in this highly important and sensitive process of privatizing Pakistan’s electricity sector,” Energy and Natural Resources Minister Alparslan Bayraktar said at the time.

Joint transport, energy projects on the agenda

President Erdoğan visited Pakistan in February last year as part of his South Asia tour.

The visit resulted in the signing of 24 agreements covering a broad range of sectors, including defense, energy, agriculture, trade, industry and communications.

During Sharif’s visits to Türkiye later that year, both sides also implemented decisions aimed at deepening economic ties.

Moreover, expanding transportation cooperation remains a priority on the Ankara-Islamabad agenda.

The two countries, particularly focused on road and rail connectivity, plan to revive the Islamabad-Tehran-Istanbul freight train route. Joint projects along the Middle Corridor, the China-Pakistan Economic Corridor and the Development Road route are also among the initiatives under discussion.

In addition to transport, the talks will address projects designed to strengthen energy cooperation.

Türkiye and Pakistan have already signed an oil and gas exploration and production agreement covering Pakistan’s onshore and offshore areas.

Ahead of Sharif’s visit, officials also discussed ways to facilitate Turkish companies’ participation in Pakistan’s privatization tenders, opportunities for local partnerships, and strategic steps to expand existing investments.

Türkiye’s experience and sectoral expertise in privatizing electricity distribution assets in recent years were shared with Pakistani counterparts. New decisions on these issues are expected during the visit.

Trade target set at $5 billion

Pakistan, one of Türkiye’s priority export markets, accounted for more than $1.2 billion in bilateral trade last year. Of that total, Turkish exports amounted to $866.5 million, allowing Türkiye to maintain its position as a net exporter in bilateral trade.

Ships and floating structures, and vehicles accounted for the largest share of exports at $303 million.

They were followed by cotton and cotton products at $150.2 million, and boilers, machinery and mechanical appliances at $95.5 million. Together, these three categories totaled $548.6 million, representing 63.3% of Türkiye’s exports to Pakistan.

During the first four months of this year, Türkiye’s exports to Pakistan reached $196.4 million, while imports from the country totaled $103.5 million.

The two sides hope that new agreements to be signed during the visit will pave the way toward achieving their long-standing goal of raising bilateral trade to $5 billion.

Turkish contractors undertake $3.5B in projects

According to the latest figures, Turkish investors have invested more than $2 billion in Pakistan.

Turkish contractors have undertaken projects worth $3.5 billion in the country, while Pakistan-based companies have made nearly $700 million in direct investments in Türkiye. These investments span sectors including automotive, electronics and telecommunications.

Following their recent diplomatic efforts that helped pave the way for an understanding in Iran-U.S. negotiations, Türkiye and Pakistan are now expected to use the high-level meetings scheduled for early July to open a new chapter in economic cooperation.

DAILYSABAH