Pakistan and Turkey move closer to inking free trade deal

ISLAMABAD: The long pending Pakistan-Turkey Free Trade Agreement (FTA) is finally at the brink of conclusion as both countries have agreed to eliminate 85 per cent of tariffs.

Both sides have also agreed to address all the remaining issues in the FTA which is to be signed by the end of this year. The understanding was reached between the two countries during the fourth round of Pakistan-Turkey FTA negotiations, which was held in Islamabad from August 29-31.

The Pakistani side was headed by the Ministry of Commerce additional secretary Robina Ather and the Turkish delegation was headed by Turkish Ministry of Economy Deputy Undersecretary Husnu Dilemre.

Both countries also agreed that the elimination of 85 per cent tariffs shall include regulatory duties and additional duties.

It is hoped that Pakistan’s exports to Turkey will likely increase by $500 to $600 million in a short span after the FTA. The trade volume between the two countries stood at around $500 million by 2014-15, with export to Turkey recorded at $309.19 million and imports at $191.05 million. Major trade items between Pakistan and Turkey are fabrics, beverages, spirits and vinegar, plastics and articles thereof, chemicals, and machinery.

A senior officer in the commerce ministry said that both countries want to expedite the process and sign the document by the end of this year to tap the massive potential of bolstering trade.