The sentiments of brotherhood that Pakistanis have for people of Turkey have their roots in history. This history of Pak-Turkish relations is a story of concern and cooperation .They have been friends and supported each other in time of war as well as peace. The story of their friendship is spread almost over a country.
The institutions of Khilafat have occupied a very important place in the history of Islamic peoples. After the sack of Baghdad in 1258 AD the Khilafat passed into the hands of Fatimid rulers of Egypt and finally into those of the Ottoman Sultans in the first half of the sixteen century. The Mughal rulers of India did not recognize the Ottoman sultans as their spiritual head. Instead, they got the Khutbah read in their own name. After the disintegration of Mughal Empire, however, there occurred a change, and the name of the Ottoman caliph was extensively used in sermon from the pulpit at Friday prayers in India. This had little political significance but it showed that sizeable sections of the Muslims community in South Asia regarded the Caliph as the symbol of Islamic unity and a source of spiritual inspiration (Ali, 2001).
It was in the year 1897 that a serious agitation started in Aligarh during the Greco-Turkish war against the British Government for helping the Greeks against Turks. At that time Sir Syed Ahmed Khan was obliged to issue a statement to the press informing to British Government that the sympathy of young Muslims for the Turks because of their religious affinity. At the same time latterly Nawab Mohsin-ul-Mulk who succeeded Sir Syed Ahmed Khan in his office to have a meeting and discussed the situation on the occasion of the British plan grab Aqba, which was restricted by the Sultan Ahmed Khan. He had to pacify the Muslims students of Aligarh by a similar statement. When the Tripoli was attacked by the Italians in 1911 with the connivance of British Government, the agitation of Muslim students was great and they held their meetings in the Mosques to express their resentment against the British Government in a violent language. As a token of their love for the Turkish cause they decided they decided to forego their meat dishes and sent the saving thus made to the Red Crescent. (Ahmad, 2005)
During the Russo-Turkish war of 1877 Muslims showed a good gesture; during the observation of the prayers in the mosques of Calcutta funds were accumulated for the injured soldiers of Turkish troops. All succeeding events and movements in Turkey got the same positive response in India. During the War of Balkan Indian Muslims sent a medical commission under the supervision of Dr. M.A. Ansari to their Turkish brethren. (Burk, 1973).
In 1905 a controversy were rose over the attitude of the Muslims could adopt in case hostility broke out between England and Turkey. One school of thought held that the Muslims owed their allegiance and loyalty to the Sultan of Turkey, because he was the caliph of Islam, while the other group instead that Muslims should not annoy and alienate the British by supporting their adversary. Besides they thought that the Muslims, like all other Indians, owed their allegiance to the British Rulers. That was the period when the process of the decline and erosion of the Turkish Empire was being hastened by the design of imperialist power. At that time France had already seized the Ottoman provinces of Algeria and Tunisia and was moving to take over Morocco. The British were firmly entrenched in Egypt. Now the Italian sought European support for their claim on Tripoli and Cyrenaica. Having been double encouraged, they began their invasion in 1911. This led to war between Italy and Turkey and touched off the Balkan wars of1912-13, which in turn merged with World War 1 (Ali, 2001).
The Muslims expressed their resentment through the press and warned the British government of the grave consequences of helping the Balkan states. In November 1912, when the Prince of Wales visited India at that time the Muslims as a protest against the British policy towards the Turks, boycotted the functions held to welcome him. Nothing less than forty thousand Muslims were sent to jail, several lawyers boycotted the law courts, hundreds of students gave up their studies, hundreds resigned from the government services and over a thousand people were killed in Malabar (Ahmad, 2005).
On 4 August 1914, the World War 1 was broke out. At that time the Muslims leaders were once again met at Delhi (India) and decided to send a telegram for Sultan of Turkey not to join the war.
However, on 4 November 1914, Turkey joined Germany in the war against the Allies. Henceforth, the plight of Turkey remained the main cause of anxiety for the Muslims of south Asia and they tried to give Turkey all possible help. The effect of the World War 1, in which the Ottomans found themselves on the side of the central powers, was the final integration of the Turkish Empire and the division of its territories as spoils of war between the victors-the British and the French.
In June 1916 Sharif Hussain revolted against the sultan and seized power in Hejaz. At that time the Muslims of British India considered this rebellion a British engineered stab in the back of the Millat. Thus All India Muslim League passed a resolution and condemning the outrageous conduct of Shrief Hussain. The Muslims of British India gave enthusiastic support to the Turks (Ahmad, 2005).
After the Turkish defeat in World War I, the Indian Muslims tried their level best that the spiritual and territorial value of Turkish Sultan should remain unabridged. Till the mid of 1920, anti British feelings were tenser among the Indian Muslims then other Indian subjects. In the result of these burning feelings Khilafat Movement was launched in India to preserve the Turkish Khilafat.(Burke, 1973)
During Caliphate (Khilafat) Movement Prominent Leaders of great repute like Molana Muhammad Ali, Shaukat Ali, Abul Kalam Azad, and Shibli Numani condemned in unequivocal terms the brutalities perpetrated on the Turks by the aggressors. On the other side the Agha Khan ( president of All India Muslim League) and Syed Ameer Ali (president of the London branch of the Muslim League) respectively, they made honest appeals to the British Government to save Turkey from total disintegration. Those campaigns of the Khilafat Movement at least succeed to collect huge funds for the support of Turks (Ali, 2001).
The plight of the Turks distressed the Indian Muslims deeply. That deeply grieved the Indian Muslims were highly appreciated because they blamed all those sufferings upon the British, who they thought were out to destroy the last bastion of Muslims supremacy. Among those Muslim Leaders who warned the British government against the consequences of its interferences with the future of the Khilafat which was led by Muhammad Ali Johar. He urged the government to take into consideration the feelings and sentiments of the Indian Muslims with the regard to Turkey while formulating the policies of the empire. The Muslims hoped that their strong expression of supporter for Turkey would persuade the British not to be too harsh in their treatment of defeated foe.
Turkey signed the armistice on 3 November 1918 immediately, after that the British forces marched into Mosul. Constantinople was officially occupied by the Allies mainly by the British. Finally on 15 May the Greek armies, at the instance of England entered Smyrna. The British Government paid no head to the numerous appeals made by the Muslims from all over the India to spare Turkey. As Muslims hopes were crashed they were driven into a confrontation with the British rulers. (Ali, 2001)
On October 1919, the All India Khilafat Committee observed the Khilafat day. The first session of the Khilafat Conference in New Delhi were held and it was decided that on 23 November that Muslims would not participate in the official rejoicing over victory in the war and if their demands were not accepted. It was also decided that they would boycott British goods and would not cooperate with the Government. The prominent member of Khilafat Committee decided that a Muslim delegation under the leadership of Molana Muhammad Ali Jauhar would be arranged. After that Muhammad Ali Johar latterly sent to England. At that time the Muslim demands were presented to the British Prime Minister Lloyed Georage. His direct reply was that all vanquished states would be treated alike and there would be no exceptions. One consequences of the British stand was a decision by groups of Muslims militants to migrate from British India which was declared Dar-ul-Harb. On the other side the Indian Muslims were making heavy sacrifices to save turkey. The Ottoman Sultan wahid-ud-din accepted the Treaty of Sevres. This Treaty was never enforced, as the Turks rally in ground Mustafa Kamal, had established a nationalist government in Angora (Ankara).They inflicted a crushing defeat on the occupying Greek forces and expelled them from Antolia (Ali, 2001).
On the other side a Grand National assembly made a decision that to abolish caliphate disappointed the Muslim masses but Allama Muhammad Iqbal considered it Ijtehad and argued that according to spirit of Islam Caliphate can be vested in a body of persons or an elected Assembly. (Iqbal, 1989)
On 8 July 1921, Molana Muhammad Ali presided over a session of the Khilafat Conference in Karachi, in which he warned the British Government: ‘if the British Government fought the Angola Government, the Muslims of India would resort to civil disobedience, proclaim complete independence and hoist the flag of the Indian Republic at the Ahmadabad session of the Indian National Congress” (Wasti, 1976).
Materially, Kamal’s strong support came from the Indian Muslims, who saw nationalist Turkey as the only independent Muslim nation. The Khilafat Committee in Bombay started a fund to help the Turkish nationalist struggle, establishing contact with a representative of Kamal in Constantinople who received constant letters of encouragement. Part of the Indian Muslims fund, which eventually amounted to some 125,000 pounds was used to pay the army. (Ali, 2001)
When Mustfa Kamal dislodged Greek forces from Turkish territories in 1921 he was highly applauded by the leaders of the All India Muslim League and they passed a resolution in this regard in the December. He emancipated the Turkish areas completely from the European control in 1922 and declared Turkey as an independent Republic and became the president of Modern Turkey in the same year until his death in November 1938. He tried to bring revolutionary changes in the Modern Turkey. He instituted new education system and introduced many reforms in all fields and departments of life to bring his country at par with the Modern Europe. He encouraged and promoted the modern European life style in Turkey. During his political career Quaid I Azam Muhammad Ali Jinnah minutely observed the developments in the Muslim world especially in the modern Turkey of the ancient Ottoman Empire. Quaid e Azam eulogized the services of Mustfa Kamal in these words, ‘ He was the greatest leader of the modern Islamic World and entire Mulsim Ummah will profoundly mourn his death.’
In December 1938, during his presidential address in the 27th session of All India Muslim League at Patna, Muhammad Ali Jinnah paid his heartiest homage to this charismatic leader of Turkey in these words, ‘Another great figure; a world figure, who passed away is Mustafa Kamal Ataturk. His death has come as the great blow to the Muslim world. He was the foremost figure in the Muslim East’ (Haq, 2010).
1.2 Pakistan-Turkey Relations after Partition
The year 1947 is to be known as very crucial period in the history of the world, on one hand the old order started crumbling with the partition of Europe in two separate spheres. On other side when Sub Continent was divided in two independent states of Pakistan and India on ideological grounds. The most desired dream of the Indian Muslims transformed into reality and they were now in possession of their separate homeland Pakistan ; the land of pure people which was the bearer of the ancient civilization and culture; it appeared on the world map. After partition Pakistan thought of its establishing diplomatic relations with foreign countries, one of them was the foremost lands to which its thoughts turned was Turkey. The Muslims of the Subcontinent learnt great lessons and inspiration during their fight for independence from the their Turkish brethren. The crucial years of Khilafat Movement from 1919 to 1922 played a very pivotal role in the Pakistan Movement as this Khilafat Movement was the first great movement run by the Indian Muslims on a large scale. They not only stood in support of their Turkish brethren but proved themselves as a remarkable aspect in the land mark history of Turkish Emperor.
Malik Firoze Khan Noon, on special instructions of Quaid-i-Azam Muhammad Ali Jinnah visited Turkey on 12 December 1947 and stated, ‘Pakistan admires the glorious past of Turkey, and its administrative achievements and organizational abilities in the past and present times. Pakistan is now two months old, and in the near future the two brotherly countries are going to establish close cultural, commercial and political relations. A new happy era will emerge for these two countries’ (Malik, 1980).
M.A Jinnah, at the time of the appointment of first Turkish ambassador in Pakistan on 4th of March 1948 stated that: ‘Turkey has drawn our admiration for the valor of Turkish people and the way in which your statesman and the leaders have struggled and fought almost single-handed in the midst of Europe for your freedom and sovereignty which is worth mentioning, ‘I really can assure your excellence that the Muslims of Pakistan will entertain sentiments of affection and esteem for your country and now Turkey and Pakistan both as free, sovereign and independent countries can strengthen their ties more and more for the good of both’.
He also hoped and said that being Muslim Countries people of both of these countries will put their genuine backing and team work to establish closer political and cultural ties among these states and thus contribute their share in the welfare and betterment of the subject of these two brotherly states. (Zafar, 1978).
After few years the Western powers anxiously wanted to link the defense of West Europe of the Middle East formed the establishment of the Middle East Defense Organization in March 1953. At that time the Egyptian leadership under Nasser stoutly opposed the above mentioned Middle East Defense organization and no Arab country, except for Iraq, Turkey and Pakistan was found to be enthusiastic. The proposal therefore fell through and Western strategies began to concentrate on the ‘northern tier’, comprising (Ali, 2001).
Joint Communique 1954
On 19 Feburary1954 in a Joint Communiqu??` issued together in Karachi and Ankara; it was declared that Turkey and Pakistan were agreed to adopt the mechanisms of closer cooperation in the political, economic and cultural departments, and they will also put their sincere efforts to develop peace and security between each other not only in their own interest but also in the interest of all peace loving nations. (Burke, 1973)
That contents of that Turku-Pakistan communiqu?? of February 1954 developed into concrete shape in an agreement signed on April 2, 1954. According to that agreement’s Article IV which dealt co-operation in defense, and statement shows that a switch of information regarding technical grounds will be made and endeavors will be done to fulfill the requirements for the ample supply of arms and ammunition in case of unjustified attacks under Article 51 of the charter of United Nations. (Hussain, 2008).
Turkey and Iraq laid the foundation of the Baghdad Pact, signing a Pct of Mutual Cooperation for ‘security and defense’ in February 1955 in the Iraqi capital. It was not an auspicious start. In the first place, Turkey was unpopular in the Arab world for having recognized Israel. Secondly, Egypt, which was considered by Britain as the key to a defense arrangement in the Middle East, denounced the Baghdad Pact.
On receiving an invitation from Turkey and Iraq to join, Pakistan was not enthusiastic. Disappointed with the amount of US aid, Pakistan was no longer keen to undertake further military commitments in Middle East. In June, Ayub Khan was invited to Turkey. Prime Minister Nuri said of Iraq was also there. He and Adnan Manderes succeeded in convincing Ayub about the advantages of joining the pact. On 23 September 1955, Pakistan signed the Pact of Mutual Cooperation in Baghdad, in it the other regional members included Iran, Iraq and Turkey. Britian also joined it but the United States did not become a full member.
The Baghdad Pact provided a good line of cooperation regarding the security and defense of the members. This line was adopted to counter the Russian policy of expansion southwards in the direction of the Caspian and the Black Sea, and into Central Asia (Sattar, 2007).
On 15 July 1956, President Iskander Mirza visited Ankara (Turkey). Both leaders Pakistan and Turkey discussed various issues about economy and bilateral trade. After those meetings joint communique was issued regarding this visit that Pakistan and Turkey will exchange solemn assurance , Turkey would support Pakistan in the settlement of disputes with India and Afghanistan, and Pakistan would support Turkey over the Cyprus issue. (Ali, 2001)
Emergence of CENTO
In July 1958 in Iraq a new government took the charge and new government made the new policy about his country. The New government of Iraq’s leader who was come through a revolution immediately denounced the Baghdad pact and Iraq ceased to be a member. The July 1958 meeting of Baghdad pact council which was held in London agreed that another defense organization should take the place of the defunct Baghdad pact. The new organization came to be known as Central Treaty Organization or CENTO in 1959 (Sattar, 2007).
The President of Turkey, Ceral Bayar visited Pakistan’s Capital Karachi on 22 September 1958 and talked about diplomatic relations with the President Iskander Mirza. At that time Turkish President suggested for the formation of a confederation between Pakistan, Turkey, Afghanistan and Iran. Shah of Iran welcomed the idea of a confederation on 28th of September 1958 and stated that ‘It’s a good idea and we are ready to form it’, but this good idea of Turkish President could not be concretized because Afghanistan adopted the policy of neutrality on the topic of Confederation. Therefore this visit of theTurkish President was officially declared as a courtesy visit. Pakistani president Iskander Mirza also opposed the idea of formation of confederation in the National Assembly of Pakistan (Ali, 2001).
President Ayub Khan visited Ankara (Turkey) in November 1959. During his talks with Turkish President, Ayub Khan discussed the events with the head of the State about the essential importance of the CENTO for the security and strength not only for the partners but also for regions far beyond the frontiers of three countries. That need was keenly felt for concerting more effective military measures. With Iraq out of the picture, there was an increase in the alliance’s unity and Iran, Turkey and Pakistan felt Brotherly regrets over Afghanistan’s unwillingness to join the alliance (The Dawn 9 November 1959).
Pakistan, Iran and Turkey started work on the construction of the Ankara, Tehran, Karachi radio micro-wave link January 1960 in order to interlink these three nation by a rapid communication system. At that time US as a member of bilateral agreement of 1959 with Turkey Pakistan and Iran sanctioned $1,837,000 to gear up a project engineering and equipment by CENTO. Meanwhile spectacular political changes took place in Turkey. On the other side in Turkey the pro-American Government of Adana Menderes was overthrown in May1960, in a coup d’??tat and General Gursel took over power. Though Pakistani newspapers and political leaders expressed concern over the fate of the ousted leader, the Pakistani Government recognized the new Government on 30 May 1960 in the same year (Ahmad, 1981).
Turkey’s stance over Kashmir Issue
In the early sixties, the Turkish leaders and their public opinion showed keen appreciations of Pakistan’s point of view in regard to the Kashmir dispute. For instance in February 1962, the Yeni Istanbul, a widely circulating daily of Turkey, in article of that newspaper, supported Pakistan’s right stand’ on Kashmir issue and stated that Kashmir possessed the same powerful weapon of nationalism which Mr. Nehru had used while occupying Goa. It added that if the world considered the occupation of Goa normal and supported India in this case, on the plea of nationalism, the Indian Premier should have accepted Pakistan’s right over Kashmir and acted with greater understanding (Ali, 2001).
At the time of Sino-Indian border war in 1962, Turkey had postponed a decision on an offer of arms to India following a vigorous protest by Pakistan. According to the Time of London (5 November 1962) Turkey had agreed, that to provide some fairly old mountain howitzers to India for use against the Chinese invasion. An aircraft containing the first consignment of Turkish arms for India was already waiting at Ankara airport when the Pakistani ambassador to Turkey conveyed his government’s protest to the Turkish Foreign Minister (Ahmad, 1981).
In October 1966, The Turkish Foreign Minister made an impassioned plea before the UN General Assembly for an early solution of the Kashmir problem in the light of the Security Council resolutions (Ali, 2001).
In February 1999 Lahore Peace Process started between Pakistan and India , the then Turkish Government supported the Peace Process and their Foreign Ministry declared this peace process as the most appropriate ground to solve the major disputes between Pakistan and India.(Sheikh, 2004).
Pakistan Support over Cyprus Issue
In 1954 and in 1957, Pakistan supported the cause of Turkish Cypriots in the UN General Assembly and urged the world body to fulfill the legitimate aspiration of the Turkish Cypriots. In 1959 the Pakistan delegation at the UN urged the world body for the fulfillment of the human rights and the legitimate aspirations of the Turkish Cypriots. Cypriots achieved independence in 1960, under the Treaty of Zurich, signed by the Turkey, Greece and the UK. The constitution provided the Turkish minorities with broad rights in communal affairs and absolute veto on important governmental matters.
When proposed certain constitutional changes by the President of Cyprus troubled the situation of the Turkish community’s guaranteed rights and the issue was again referred to the UN Security Council. Pakistan showed here full support of the Turkish government in United Nations in 1963 when Pakistani Foreign Minister Mr Zulfiqar Ali Bhutto attended a session in UN General assembly and in his address he showed the full commitment and concern of the Pakistan government and her people for their Turkish brethren. He showed hope to maintained that agreements settled the problem of Cyprus must be respected as international commitments and assured that Pakistan will extend full cooperation to Turkey in her moment of crises.
In July 1964, President Ayub khan visited turkey. The Pakistani President disclosed later that during his meeting with Turkish leaders, they had expressed grave concern over the Cyprus situation. Therefore he had promised to convey the Turkish concern to the forthcoming Commonwealth Prime Ministers Conference in London.
On the other side the Turkish Government expressed her hearty appreciation of stance of the Pakistani government on the Cyprus issue. Turkish Prime Minister, Mr. Suleman Demiral expressed his gratitude for Pakistan’s stand on Cyprus problem in his visit to Pakistan in April 1967.
The communal situation again deteriorated in July 1974. The then Pakistan Prime Minister appealed to the people of Pakistan to demonstrate their sympathy and support for Turkey and again Pakistan supported Turkish stance at UN General Assembly debate on the Cyprus question in November 1974 and November 1976 too. President Zia UL Haq visited Turkey in November 1977, Prime Minister Demirel and President Zia exchanged views on mutual interests and development of cooperation, Premier Demirel thanked Pakistan for its sincere interest in and keen understanding of the Cyprus question. (Ali, 2001)
Meanwhile the western Media, noted that there was a new ‘line-up’ between Turkey, Iran and Pakistan outside the framework of CENTO. As one British newspaper commented: ‘It is also significant, in the light of recent anti-western feelings in Turkey over Cyprus, that Turkey should be taking part in talks with Iran and Pakistan, which have in recent years adopted a more flexible policy towards the soviet Union and China (Ali, 2001).
In 1974 During the Cyprus Crises the Prime Minister Zulfiqar Ali Bhutto appealed the Pakistani’s to help Turkey during the conflict, the statement said, ‘Our hearts go out to the people of Turkey at this crucial hour in their history. This is not the first time that the people of Pakistan have been intimately concerned with the experience of paternal Turkish Nation. The memories of that upsurge of sympathy which Muslim India at time of Turkish War of independence after The First World War is fresh and imperishable’ (Hasan, 2002).
Turkish stance over India-Pakistan Wars
The outbreak of Indo-Pak war on 6 September 1965 constituted a major test of the friendship of Pakistan’s regional allies. The Turkish Premier, Mr. Urugplu said that the Turkish government hoped that efforts by UN Secretary General U Thant to achieve a ceasefire would prove successful. He also said that India had aggravated the crises by taking the conflict beyond Kashmir into Pakistan and by bombing Pakistani Towns. He further observed: ‘The dangerous crisis which has been developing recently between the two countries is a direct result of the failure in finding a just solution to the Kashmir Problems.’ On 10 September 1965, Turkey and Iran in a joint statement called for an immediate ceasefire, the withdrawal of Indian forces from Pakistani territory. The communiqu?? concluded: ‘the Governments of turkey and Iran reaffirmed the solidarity which links Turkey-Iran and Pakistan, and declared that they are ready to support Pakistan as a brother country and an ally (Ali, 2001).
The Turkish Premier announced that Turkey would send five million dollars’ worth of Turkish made arms and ammunition to Pakistan under the terms of an existing trade agreement. Though Turkey could not respond to favorably to Pakistan’s appeal for Jet aircraft , presumably because the US would have objected to the transfer of material which she had given , Turkey decided to ‘use all national possibilities , to aid Pakistan with guns and ammunition. Large numbers of Turks volunteered to fight against India and a number of Nurses flew to Pakistan and served there (Burke, 1973).
Pakistan was deeply touched by the Turkey’s sympathetic attitude and President Ayub visited Turkey in December 1965 and met president Cemal Gursal. He expressed his deep gratiture to the Turkish President Gursal for the moral and material support of Turkish government provided to Pakistan during Indo-Pak war of 1965 and he also briefed him regarding the latest Indo-Pak situation. Turkey’s support for Pakistan’s efforts to seek a Kashmir solution continued to be expressed after the war ended and in all subsequent visits exchanged between the heads of state of the two countries, turkey reiterated its steadfast support to Pakistan on the Kashmir question. In October 1966, The Turkish Foreign Minister made an impassioned plea before the UN General Assembly for an early solution of the Kashmir problem in the light of the Security Council resolutions.
When the Indo-Pakistan war began in December 1971, the Turkish Premier, Nihat Erim, called for the immediate withdrawal of Indian troops. In June 1972, the President of Pakistan, Mr Zulfikar Ali Bhutto, paid a visit to Turkey. In a joint statement issued after his talks with the Turkish President Cevdet Sunay, the two leaders expressed the hope that the planned summit between the Pakistani President and the Indian Premier would lead a durable and honorable settlement of dispute between their two countries. On 4 October 1972, the Turkish Foreign Minister, in a speech before the UN General Assembly, made a strong plea for the release of Pakistani prisoners of war in India since December 1971 (Ali, 2001).
Chapter 2: Pakistan-Turkey Relations in Economic, Trade and Investment Sectors (1947-1979)
In the mid-fifties, Pakistan made a small volume of trade with the Baghdad pact countries and with some other Middle Eastern countries, such as Afghanistan, Saudi Arabia, Egypt and Bahrain. After that in the late fifties, between the Baghdad Pact countries, Iran’s trade with Pakistan was the largest of all, with Iraq and Turkey occupying the second and third respectively.
Visit of Turkish Trade Team in Pakistan 1959
However, by the beginning of the sixties, Pakistan and Turkey began searching for avenues of expanding trade. A Turkish trade team visited Karachi in October 1959 and in a joint communiqu?? announced that there were ‘possibilities of development of trade’ between Pakistan and Turkey and further official meetings were expected to take place in near future ‘for achieving some positive results’ in this respect. At that time the Pakistan commerce Minister noted with regret at a press conference in Istanbul on 15 October 1959, trade between two countries was negligible with a balance of about two million rupees in favor of Pakistan (Ali, 2001).
Facts behind Formation of RCD
The three countries Iran, Pakistan and Turkey may be regarded as belonging to distant cultural area. They are non Arab and the Turko-Persian culture dominates the lives of the people. Thus besides Islam they have many common bond between them. They have been united under the Ottoman Empire and had common political thinkers, historians, writers and poets. All the three states were the members of CENTO and their policies were pro-west. If we analyze their economic needs in the early sixties, all three were moving towards industrialization and modernization. Their economic needs and goals were similar in the beginning of sixties. They disenchanted with the west and began to looking for new avenues. Turkey was not happy over the issue of Turkish Cypriots. In Iran there was in evidence a trend towards national assertion, and country had sought to lessen its embroilment in the Russo-American conflict. Iran on account of cut in economic assistance too, and Pakistan was disenchanted because of flow of US arms to India after Sino-India border conflict (Hasan, 1964).
Creation of RCD
The idea about the formation of RCD between three Muslim members of CENTO (Pakistan, Iran and Turkey) was first discussed in April 1964 in Washington. They decided to forge a new partnership without CENTO when they three countries were gone to attend the CENTO Council meeting. A joint statement by the three heads of States issued on 22 July 1964 in Ankara, named the new organization ‘Regional Co-Operation for Development’ and resolved that appropriate means should be adopted to set up co-operation ‘in all fields ‘in a spirit of ‘regional co-operation.’ It was decided to create three Ministerial Councils composed of Foreign Ministers and a Regional Planning Committee which will be consisted of the heads of these tri-national planning organizations a permanent Secretariat was later established at Tehran. A few months later president Cevdet Sunay said that Turku-Pakistani relations had reached a level for above that of alliances (Burke, 1973).
The Secretariat was established in Tehran. The first Secretary General of RCD was an Iranian Dr Fuad Rouhani. It has often argued that the RCD was a result of disillusionment of three states with CENTO, through it is also considered by some to be the most satisfying and potentially the most faithful, partnership which Pakistan has so far forged with the Muslims countries. (Ziring, 1990)
Tehran Meeting of RCD October 1964
During the meeting of Ministerial Council of RCD held in Tehran in October 1964 it was decided that the charges for telephone calls between the countries of the region be substantially reduced. As a good step towards promoting cooperation among the three states Iran, Turkey and Pakistan that were signed as an agreement on 16 October for abolition of visas amongst them (Ali, 2001).
The RCD initiated to speech itself to the possibility of some very ambitious projects. In October 1964 Ministerial Council of the RCD meeting which was arranged in Tehran called for the preparation of a preliminary report on the setting up of a joint airline. That project was tracked for a long time but it proved a non-starter. At the same time another RCD project related to the formation of a conference arrangement between Pakistan, Iran and Turkey for pooling their traffic and ships on specific and agreed routes as a first phase towards the establishing of a joint maritime line (Ali, 2001).
Develop of the RCD Joint Shipping Lines March 1965
Few months later on March 15, 1965, Turkey, Iran and Pakistan agreed to develop the RCD joint shipping lines. That meeting was organized in Istanbul which attended by the representatives of all of these three countries. An agreement was sanctioned; as per that accord Pakistan will provide 50%, Iran 35% and Turkey 15% shares for the said shipping lines which were decided to be made operational within a short span of a year. (Dawn 16 March 1965).
In 1965 both countries Pakistan and Turkey started a program for technical education. Under that program 122 fellowships and scholarships were awarded and 11 experts were exchanged others this six seminars were conducted and five publications were published between two countries. In March 1965 a joint airline project was formerly conceived by the Regional Planning Council and it was decided that not long afterwards the RCD committee on air transport began to establish regular air links and the first RCD flight of Pakistan International Airline (PIA) linking Karachi with Tehran and Istanbul started on November 1966 (Ali, 2001).
The RCD shipping services started working on international routes in May 1966 and it directly linked Pakistan and Turkey via sea route and made an everlasting impact on regional trade. On the other side Iran airlines tracked this up by starting a jet service to Europe via Istanbul (Ali, 2001).
On July 1967 an RCD joint venture for printing bank notes which was inaugurated in Karachi (Pakistan). That was the first industrial project in which all three RCD countries obligated collaborated. That new factory was subsidized by the Pakistan Security Printing Corporation. This agreement was based on the RCD union for multilateral payments arrangements which was signed in Ankara in April 1967. It was interesting to note that this was a key step toward the expansion of intra-regional trade .The RCD insurance center was established in Karachi to promote a study of measures which could facilitate cooperation in this field. That center published the RCD Insurance Manual in 1967. The three RCD insurance pools functioned effectively and several national companies joined the pools.
Z.A Bhutto’s vision about RCD
During 1967 at that time Foreign Minister of Pakistan Mr. Z.A Bhutto pursued to strengthen the cooperation between Pakistan, Iran and turkey through RCD. Bhutto wanted at least one trilateral agreement with Turkey and Iran to have a stronger impact on Pakistan’s security needs. He explicitly called for a ‘new dimension’ to be added that the RCD chapter, because ‘economic collaboration without political and security arrangements is fantasy’. Bhutto attended the RCD summit at Izmir on April 21-22, 1967 and asked for the ‘Systematic consolidation of joint efforts would be to defend our civilization against all challenges on economic, political, ideological or military grounds’. Bhutto’s vision of revived and relevant RCD did not materialize (Mahdi, 1999).
During 1966-67 at that time East Pakistan was still a part of Pakistan, Jute manufacture formed about 85% of Pakistan export to Turkey. It was said the remaining 15% covered such items as henna powder, new hides, pressure lamps and glycerin (Hasan, 2002).
On October 31, 1967 President Ayub Khan of Pakistan visited Turkey, the joint communiqu?? issued, after the visit stated: ‘The two sides noted with satisfaction the growing relations between Pakistan and Turkey in all directions. Both countries were also agreed on a conclusion that measures should be taken to enlarge these relations especially in the economics and cultural fields. With the passage of time both countries further agreed that with a view to promoting trade relations between the two countries, and for this it was noted by the observers that commerce delegations should exchange visits’ (Hasan, 2002).
On April 15, 1968, in the 8th meeting of the Council of Ministers, held in Tehran all of these three countries agreed to sense of satisfaction among the council members that the RCD rail link between Iran and Turkey was progressing according to the schedule and the train service between the Quetta and Zahidan had been resumed with effect from November 16, 1967 (Hassan, 2002).
At the same time Governments’ efforts to promote intra-regional trade improved unequal to the task of overcoming the tough obstacle that discouraged trade expansion. For instance in 1969 the percentage of goods exchanged among Iran, Pakistan and Turkey stood at the level of 1, 1 .9 and 0.5 percent respectively of their total trade. Thus about 99 percent of the region’s foreign trade was still conducted with the rest of the world. It was partly to expand their potential and diversify the exchanges that the RCD Regional Planning Council decided to set up joint purpose industries. Until 1969, fifty-five joint purpose enterprises had been either established or approved in principle (Ali, 2001).
Pakistan-Turkey Balance of Trade
Year Imports Exports Balance
In Million Rs.
1959-60 15.7 0.4 -15.3
1960-61 0.1 0.1 –
1961-62 0.2 0.1 -0.1
1962-63 0.1 0.2 +0.1
1963-64 1.0 0.3 -0.7
1964-65 4.2 0.2 -4.0
1965-66 0.7 0.6 -0.1
1966-67 8.2 0.8 -7.4
1967-68 0.7 1.1 -0.5
1968-69 1.4 0.5 -0.9
1969-70 1.0 1.6 +0.6
1970-71 2.3 1.5 0.8
1971-72 9.4 1.2 -8.2
1972-73 54.8 1.4 -53.4
1973-74 20.3 3.2 -17.1
1974-75 21.0 6.1 -14.9
1975-76 16.3 83.6 +67.3
1977-78 57.3 243.9 +186.6
1978-79 71.1 158.6 +87.5
Pakistan Economic Survey, 1978-79,
Govt. of Pakistan , Finance Division, Economic Advisors Wing, Islamabad, p.113.
November 27-28, 1969, the Council for Ministers in Tehran stated satisfaction on the progress of cultural and economic cooperation between Turkey, Pakistan and Iran. The encouraging successes of RCD were also observable in fields of chemicals and petrochemical industries. Progress was also made in the field of joint exploration of oil. In 1970, at Izmir, at the RCD summit conference, the member countries noted that the RCD provides a useful permanence of great potential for promoting socio-economic development among these three countries. All member nations were directed to take operational steps towards the reduction of quantifiable restrictions and other tariff obstacles to trade. The avoidance of double taxation was also discussed. The countries agreed to cooperate in a joint petroleum operation between Iran and Pakistan and the Ahraz Iskenderun pipeline project. The Turkish and Iranian Government were asked to pursue projects and take suitable steps (Hassan, 2002).
In the start of seventies it was noted that Pakistan’s exports to Turkey which mainly consisted jute and its products, received setback after the eastern province abandoned from Pakistan in 1971.
Establishment of Pakistan-Turkish Joint Commission for Economic and Technical Cooperation-November 1975
The need to institutionalize Pakistan-Turkish trade was fulfilled with the establishment of a Pakistan-Turkish Joint Commission for Economic and Technical Cooperation in November 1975. Consequently Pakistan and Turkey made sincere efforts to raise the joint cooperation in the fields of trade, agriculture, industry, science and technology. After the signing of agreement on economic and technical cooperation. The Turkish Foreign Minister Ihsan Sabir Cagnalaygil said, ‘Cooperation between the two countries in the economic and technical fields already occurs under RCD which Pakistan’s neighbor Iran also joins. That arrangement pursues to reinforce and expand the cooperation within a bilateral frame work’. It covers a wide range of economic activities, joint projects in fields of agriculture, industry, commerce and transportation, beside development of technical cooperation imagining provisions, on a reciprocal basis, of experts, documentation and technical training. Indeed it opens wholly new vista of cooperation between two countries, the potential of which will grow and increase in quality and range as economic development of both countries profits (Hasan, 2002).
RCD Ministerial Council meeting held in Pakistan in January 1976 the three member states resolved to take measures to strengthen and revitalize the RCD. This clearly reflected an awareness that the organization had not been able to achieve all that it set out to achieve. At the Izmir RCD Summit held in April 1976, the then Pakistani Premier emphasized the importance of removing all obstacles between the intra-regional trade of these two nations to establish a free trade area. The Izmir Treaty was signed in March 1977 by RCD member nations, which paved the way for the foundation of RCD investment and development bank to initiate, promote and finance projects of a regional importance (Ali, 2001).
As a member of RCD Pakistan and Turkey made a good progress like various roads for enlarged Pakistan-Turkish trade were explored, it was originate that Turkish traders were interested in importing from Pakistani items that like surgical instruments, caustic soda, glycerin, castor oil, and products of stainless steel. On the other side Pakistani Importers were keen to buy chemicals and textiles auxiliaries among other goods from Turkey. At the session of the Pakistan-Turkish Joint Commission for Economic and Technical Cooperation which was held in Islamabad (Pakistan) in March 1977, the two governments Pakistan and Turkey obligated to identify a number of areas of cooperation, counting agriculture and food. That interest was shown at the time of launching joint ventures in the fields of commerce, industry and transportation.
Thus both countries once again come nearer to each other on 28 March 1977 when they signed a protocol in Islamabad on provided that for enhancing cooperation in agriculture, industry, trade and technical spheres. At the same time joint Commission favored to enhance the trade size, imagining frequent exchange of trade allocations, and agreed in principle, on joint participation in appropriate international fairs. On the other side in the fields of Agriculture, Turkey agreed to supply technical aid to Pakistan in the production, cultivation and marketing of olives, development of rain-fed agriculture, sunflower cultivation, and the production of quality cotton seeds. At that time Pakistan Turkey friendship was highly appreciated by the peoples of both countries (Ali, 2002).
On 16 January 1978 both countries further come nearer to Closer cooperation in aviation was the theme of a meeting of the representatives of the three national airlines at Tehran. The three countries (Iran, Pakistan and Turkey) airlines decided to take necessary steps for increasing their inter-lines cargo business on both inter-regional and international routes. On the second side the national airlines also decided to give 50 percent discount to students of the three member countries travelling within the region. This cooperation was seen to be vitally important for promoting free movement of goods and people within the region (Ali, 2001).
Thus in May 1978 both countries Turkey and Pakistan in the next meeting of the Joint Commission which were held in Ankara (Turkey) , it was noted that an increase of items in trade had taken place during the last financial year. That increase was accounted for by the addition of a wholly new item of Pakistan which were based in import like fuel, oil, and a virtual doubling of the export of Pakistani rice to Turkey, during the year. That rising trend however, could not be continued. The total size of trade which proclaimed to Rs 301 million in 1977-78 came down to Rs 242 million in 1977-78.Pakistani exports to Turkey had pointed off from Rs 244 million in 1977-78 to Rs 160 million in 1978-79 (The Pakistan Times 24 December 1979).
Chapter 3: Pakistan-Turkey Cooperation in Economic, Trade and Investment Sectors (1980-1999)
In 1980 Turkish President Evrin confirmed his determination for further strengthening and expanding the cooperation between the two countries and both sides communicated fulfillment over joint ventures in different field, such as communications, electronics, auto motives, engineering and pharmaceuticals. Though there was a realization that the full potential of bilateral trade had not been exploited. Latterly the Turkish President Turgul Ozal thrown Turkey on the road to economic liberalization and Turkey’s industry went through a rapid phase of modification. At the same time in January 1980 Turkey approved a comprehensive economic adjustment program relying heavily on market concerned with solutions. Turkish late President Turgul Ozal had called for more tariff concession on selected terms to promote trade and commerce between Turkey and Pakistan. Turkish President Turgul Ozal in an interview with the Gulf Economist obligated and also strained the need for providing an infrastructure for communication and transport facilities between the two countries. The late president Ozal remarked, ‘I feel that action should be taken on the proposal, for trade and tariff concessions on selected items’. At that time such proposals were earlier considered under RCD, Whereas RCD being given a new name, the process of strengthening the economic and trade ties should continue uninterrupted (The Pakistan Times 14 April, 1985)
During 1980’s total volume was an indication that through was existed between the two countries; the two governments failed to make use of it. Secondly businessmen on both sides failed to increase the level of trade. Though the volume of trade showed little improvement in 80’s Turkey and Pakistan cooperated in the fields of banking and insurance, transport, communication, tourism and agriculture. The main imports from Turkey have been grams and other pulses, some other food items and manufactured goods. The trade between Pakistan and Turkey was mostly done by air, which was very expensive for both countries (Hasan, 2002).
In1981 Ministerial Joint Commission noted that to remedy inadequacy of shipping services for increasing trade between the two countries, efforts would be made to explore the possibilities among others, of trans-shipment of goods through Gulf ports. At that time the experts decided to meet and to study the matter. During Nineteen hundred eighties, the items of export from Pakistan included rice, iron steel, billet stainless steel sheet, cotton yarn, grey, cloth, surgical instruments, jute yarn, basin cloth and jut looms. Turkey offered Pakistan a 50 million dollars short term revolving credit facility for increasing the size of trade between the two countries. A separate protocol was endorsed between the State Bank of Pakistan and the Central Bank of Turkey finalizing banking arrangements related to the revolving credit (Hassan, 2002).
In the start of eighties (1981) Pakistan began to strain fact that the Muslim countries must strengthen their trade relations with each other, so that their economies could growth, the curse of poverty be excluded and they become less dependent on the West. That time of thoughtful owing to the various factors. The Iranian revolution ensured taken the world by storm. It needed crushed the myth that Western help is essential component for progress. Instead the people of the Muslim world had become influenced that great deeds could be realized through the motivation of masses. Islamic revolution needed enthralled the Muslim countries and they were more eager than before to forge strong ties with the brethren.
At the same time a procedure for greater economic and technical cooperation was signed between Turkey and Pakistan on November 12, 1981. Thus both sides Pakistan and Turkey noted that the size of trade was motionless low and therefore identified the constraints, inadequate shipping and telecommunications links and lack of contacts between businessmen. It was also noted between the steps taken to recompense the situation was, Ankara’s restitution of rice agreement with Pakistan and its offers was that to five lac (half million) tons of cement for sale to Pakistan. Turkey was also allowed the opening of a Pakistan bank in Turkey (Hasan, 2002).
Joint Venture in the Field of Engineering November 1982
In November 1982, a joint venture was set up in the field of engineering consultancy. Formal negotiations were conducted between NESPAK and the Turkish company TUMAS. The governments of two countries examined the possibilities of establishing the joint ventures in appropriate sectors such as manufacture of tractors, automotive components and electronic equipments. The two countries also agreed on increasing cooperation in advanced information systems and also on joint engineering consultancy services (Hasan, 2002).
President General Zia-ul ‘Haq visit to Turkey 1983
President General Zia-ul-Haq visited Turkey in 1983. Both governments (Pakistan & Turkey) decided that the joint commission which meets once a year should endeavor to support the economic ties between the two countries and continue to diversifying and expanding cooperation between Pakistan and Turkey. Both countries leaders after the discussions made joint communiqu?? and stressed the ‘important of the need to improve communication for further strengthening economic ties and noted the development in the field of air transport between the two countries allowing the exercise of the fifth freedom and increasing the airline construction between the major cities as well as the establishment of a regular maritime cargo service between their seaports. Both countries stated and remarked that meetings remained fulfillment with the recent international subscribers dialing linkage and the reduction of post and telegraph fees (Hasan, 2002).
Formation of ECO
ECO was a descendant organization of Regional Cooperation for Development (RCD) that was established in 1964 between Turkey, Iran and Pakistan. The main target of this organization was to extend the economic development in the region by promoting intra-regional trade ties. But unfortunately no practical economic enhancement took place in the region; neither intra-regional trade nor harmonization of economic policies was exercised between the member states in this rehabilitating process of this organization. In late seventies important political replacements took place in Iranian and Pakistani governments. The old established monarchic rule of Shah of Iran was toppled through Islamic revolution and in Pakistan martial law was imposed. Due to the changing priorities and policies of the newly established governments in 1979; in both of these countries RCD did not played its vital role and became a practically defunct organization (Ikram, 2008).
Basic document of the Treaty of Izmir was originally signed in 1977. Seven new members, Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, joined ECO in 1992.
This organization had little economic upshot before its expansion in 1992. The Treaty of Izmir introduced a few important yardsticks, such as establishment of a trade and development bank and of an ECO reinsurance company, but they are still unaccomplished tasks. A draft on Preferential Tariffs was signed in May 1991, which was to be implemented in May 1993.
The treaty included the following objectives of the organization:
‘ Sustainable economic development.
‘ Progressive removal of trade barriers & promotion of intra-regional trade.
‘ Gradual integration of regional economies with the world.
‘ Development of transport & communication infrastructure.
‘ Economic liberalization and privatization.
‘ Mobilization of region’s energy, industrial and agricultural resources.
‘ Regional cooperation for controlling the international transportation of drugs.
‘ Strengthening of historical & cultural ties (ECO at a Glance).
Potential of ECO Region
The ECO member states constitute a region, which is endowed with vast potential in field of mineral, wealth and energy resources, both oil and gas. The ECO region has also been known as for its huge natural resources such as cotton, wheat, coal and hydroelectricity. To add up to these are the great assets of human resources of more than hundred million energetic people. Their territories are contiguous making movement goods and services between each other relatively easy. The Central Asian States have surplus energy resources. Iran floats on oil and Turkey has a reasonable industrial base. Pakistan possesses well-developed Argo based industries with the approach to the sea for landlocked neighbors. It is also the shortest route for the exports of Central Asian oil and gas to East Asia (Bokhari,1999).
The main goals of ECO are based on economic expansion; therefore the major areas for this organization have been trade and infrastructure improvement. The development of transport and communication infrastructure is essential for promotion of trade; therefore this segment of economy has always been given chief worth in the program of ECO’s summits. Following progress was made in this regard. The first summit was held in Tehran in February 16-17-1992. In that meeting the member states agreed that the efforts would be made to continue the process of elimination of long and short term barriers to trade and all subsides at the earliest. At the end of the summit a joint communiqu?? was issued in which the heads of state/government, considered the membership request of Azerbaijan, Turkmenistan, Uzbekistan, Tajikistan, and Kyrgyzstan and decided to admit them as members of ECO. The members also agreed on the list of items to be traded on the preferential tariffs among the ECO countries and a non-tariff barrier together with all subsides on export (Bhatti, 1995).
in May 1992 the leaders of the Central Asian Republics, as well as the original ECO members, Iran, Pakistan and Turkey, assembled at Ashkabad, on special initiative of President Saffer Murad Niyazov of Turkmenistan in which in effect shaped into the first ‘working session’ of the expanded Economic Cooperation Organization. The participating leaders declared their intension of joining forces to exploit their resources and raw materials for the progress and well-being of all the all member countries. That Summit considered a wide range of economic and political issues relating to economic development, as well as peace and stability. The most significant outcome of the Ashkabad summit was an agreement to erect a new railroad connecting all the member states and a project of gas pipeline and a highway. (Bhatti, 1995).
The third Ministerial conference of ECO at Quetta on 6 & 7 February 1993, proved to be singularly successful in every way. The choice of the capital of Baluchistan for the moot proved to be a happy one: it served to highlight the role that the province could play in the most crucial sphere of cooperation, namely, transport and communications. The Quetta plan of action was adopted by the Ministerial representatives. Setting the goal of achieving its objectives by the year 2000, the ministerial council adopted guidelines in seven specified areas of cooperation: Transport and Communication, Trade, energy, Industry, Agriculture, Tourism, and Human Resource Development. Trade within the region was too expanded, and the council of ministers directed the Economic and Commercial Committee to work towards the abolition of tariff and non-tariff obstacles between the member countries, as also to examine the possibility of expanding preferential tariff arrangements to include the member countries. At that time it was noted that certain developments during and after the Quetta meeting raised hopes of additional benefits to the region through ECO (Bhatti, 1995).
The second ECO summit was organized in Istanbul on 6th &7th of July 1993 in which took many essential decisions to achieve the objectives agreed on at Quetta. It approved the accord to establish the headquarters of Economic Cooperation Organization shipping and airline companies in Iran, ECO Reinsurance Company in Pakistan and the ECO trade and development bank in Turkey (Bhatti, 1995).
An Overview of ECO key Economic and Trade Agreements
The key progress in the fields of economic and trade under the umbrella of ECO is under:
ECO Reinsurance Company 1995
The three member countries i.e. Iran, Pakistan and Turkey agreed to set up the ECO Reinsurance Company in March 1995 in Islamabad. The aims of Company are at supplementing the obtainable reinsurance services in the area, promoting the expansion of national capitalizing and preservation abilities, minimizing the loss of foreign exchange from the area and supporting economic progress among the member countries.(ECO at a Glance).
Almaty Outline plan, 1997
This plan was an elaboration of the Quetta Plan which suggested the interlink of road & Railway networks of Central Asian Republics (CAR’s) with the linked roads & railways of Iran, Turkey and Pakistan. It further looked for the construction of lost links of roads and railway tracks. Another important goal of this plan was to unlock international road transportation among member states(Bhatti, 1995).
That ECO Trade Agreement was chalked out to institute free trade zone in the region by 2015. It was determined to reduce the tariffs of the goods traded from 80 % to 15 %. That accord at that time was not endorsed by Iran due to her differences with Turkey over tariff issues (ECO at a Glance)
ECO TDB 2007
The purpose of ECO Trade & Development Bank was to channelize resources for embarking, enhancing and supplying financial facilities to enlarge intra-regional trade and to offer experts counseling to member countries in solving their fiscal issues. Operations of Bank started in 2008. In Tehran and Karachi representative offices of the Bank are functional with best performance (ECO at a Glance)
ECO Freight Train Service 2009
A very significant venture was inaugurated between Pakistan, Iran and Turkey in 2009. According to that Train’s route was planned from Islamabad, Tehran and Istanbul. It’s further target was to connect Pakistan with Europe via Turkey. At that time it was expected that the railway routes can link ECO member states with Europe for this purpose some missing links had to be up graded . Quetta-Taftan track & Kerman-Zahidan track were very important of these tracks. (ECO at a Glance).
The ECO-IRU Silk Road Truck Caravan, 2010
That Caravan Silk Road started its journey from Islamabad in April 2010 and completed it on October 2010 in Istanbul after covering a long distanced journey of 11,000 km. The caravan travelled through seven countries of ECO including unstable region of Afghanistan.The purpose of this journey was to gather information in order to facilitate road transport in the area (IRU-ECO Truck Carvan).
Turkish President visit Pakistan November 1985
On November 14, 1985 President General Zia-Ul-Haq was invited to Turkish President Kenen Evren to pay a state visit to Pakistan. During his visit to Pakistan he stated: ‘Our countries has vast potential which can lead to a more intensive economic collaboration, we both have the necessary political will and determination for this purpose.’ On November 15, 1985, the two countries signed an accord to avoid implementation of double taxation between the two countries (Dawn November 16, 1985).
During 1985, Islamabad (Pakistan) enhanced 40 different industrial projects to be set up in Pakistan as joint ventures with Turkey. A trade center was installed in Islamabad. Two joint ventures were a Sugar Mill in Toba Tek Singh and a compressor factory at Faisalabad. Both countries Pakistan and Turkey in order to improve their trade which was running into difficulties because of none complimentarily of their respective economies, agreed to set up a joint committee to make recommendations (Hasan, 2002).
In 1987, the major achievement of the President General Zia Ul Haq’s visit to Turkey was that the two countries got mutual understanding on cooperation in defense production. By concentrating attention on defense production, both countries took an important step forward (Dawn 15 October, 1987).
The common prospective of Ankara and Islamabad bind them together, impulses temporary incompatibilities and inconsistencies in then relationship on side line. Turkish and the Pakistani governments tried to induce their respective private sectors to increase bilateral trade. During 1989 the new Prime Minister of Pakistan Benazir Bhutto visited Ankara and called for reinforcing further deep brotherly ties between Turkey and Pakistan. It was appreciated that excellent political relations were not reflected in their economic cooperation. It was also noted for example that the significance of trade between them was far from satisfactory and the balance had been unfavorable for Pakistan. The deficit grew over the year. In 1983-84 their total trade amounted to Rs.453 million with Pakistan’s deficit standing at 161 million. The two countries also decided in 1989 to constitute committees of technical experts to identify bottlenecks.
With the change of government in Pakistan, during Nawaz Sharif’s premiership Mr. Sartaj Aziz, Minister for finance paid official visit to Turkey in April 1991 and a meeting of Joint Commission for Economic and Technical Cooperation between Pakistan and Turkey was held in Ankara. Regarding trade relations both sides noted with satisfaction the recent increase in volume of trade which had reached 130 million US dollars in 1990. However the two sides again stressed that the level of bilateral trade did not fully reflect the real potential of both countries. The two sides therefore agreed to make concerted efforts to increase and diversify bilateral trade to the maximum possible level on a balanced and a beneficial basis (Hasan, 2002).
Turkish Prime Minister Mr. Suleyman Demirel visit to Pakistan 1992
In October 1992, Pakistan and Turkey decided to consider several measures to bring their trade relations at par. Turkish Prime Minister Mr. Suleyman Demirel visited Pakistan on October 24 & 26,1992 both countries endorsed a Memorandum of Understanding (MoU), which mutually consulted the most Favored Nation status in bilateral trade relations. Both Governments also decided to encourage the participation of the private sector. The Turkish Prime Minister announced that antidumping duty imposed on Pakistan cotton yarn by Turkey would be withdrawn from December 10, 1992. The two sides also reached at the following decisions and agreements: They agreed to hold the ninth session of Pakistan-Turkish Joint Ministerial Commission in February 1993. Having studied in detail commercial and economic cooperation with special reference to trade relations, they recognized that that they did not reflect the cordiality of their bilateral relations. Many hurdles still remained which needed to be removed (Hasan, 2002).
Both of these countries also agreed to advice the Business Council to intensify their activities. They were also agreed that there would be periodic exchange of visits between businessmen of two countries. The Turkish counterparts explained difficulties faced by the Turkish exporters due to custom duty rates applied in Pakistan on Turkish goods. The Turkish Prime Minister Suleyman Demirel appreciated the comprehensive economic liberalization program which was launched by Mr. Nawaz Shrif (Hassan, 2002).
Prime Minister Suleyman Demirel agreed that ‘The traditional Turkish-Pakistan brotherhood is indeed our greatest asset that is deeply rooted in the minds and hearts of our two people. What is left to our Governments side is the duty to enhance the relations between our countries taking stock of this solid foundation’ (Dawn 26 October, 1992).
In February1993, Pakistan and Turkey decided to growth their volume of trade from $100 million to $200 million (for the year 1993). A protocol signed by the two countries at conclusion of three days conference of the ninth Pakistan-Turkey Joint Commission on Economic and Technical Cooperation foresaw greater bilateral cooperation. That protocol was also highlighted in cooperation between the scientific and technical organization of the two countries. It was remarkable to note that both countries decided that the Turkey would offer transit services in communication equipment.
It was also decided in the same year 1993 to constitute a committee of technical experts of both countries which would chalk out a detailed and comprehensive plan with concrete proposals for the development and progress of communication skills. In the same year Turkish government lifted antidumping duty imposed on the imports on Pakistan Export of cotton yarn required provided opportunities to other yarn exporting countries i.e. India, China and Brazil to fill the gap. Pakistan exports around two million kilos yarn to Turkey. The Pakistan’s Textiles sector exporter appreciated the Turkish government’s decision to withdraw the duty (Hasan, 2002).
In 1993, the Turkish highway construction company STFA was awarded the contract by the Government of Pakistan. The Turkish private sector needed successfully qualified to execute part of the prestigious Indus Highway project. At that time the second major private Turkish investment company was STFA (Sezai T??rke Fevzi Akkaya) construction company, with a total capital commitment of $597 million. Through 1998 five projects were accomplished, counting the $138 million Jinnah Naval Complex, the $100 million Lahore Bypass Project, the $42 million Indus Highway Project, the $6 million Ormara Water Supply Project and the $5 million Ormara Submarine Rebuild Project (Ahmad, 2000).
On March 1993, the contract for the construction of the Islamabad-Peshawar section of the Pakistan Motorway was awarded to Messieurs Byinder Holding Construction of Turkey. The total length of Islamabad-Peshawar Motorway was noted 189 km. Total estimate of that project was targeted to be at Rs.16.5 million which would be completed on partial financing basis with 60% GOP funding, 40% as a loan back by the government of the Turkey (Ahmad, 2000).
In October 1994, a joint venture agreement was signed between Tutan Bank which belongs to Yasar group (Turkey) which was one of the largest business houses of Turkey and the Fidelity Investment bank of Pakistan to set up a Universal Trading Bank with headquarter at Lahore. It would have approved capital of 500 million rupees of which 100 million rupees would be subscribed by the Turkish side.
In March 1995, both countries signed two accords for the endorsement and safeguard of investment and agricultural cooperation, the first agreement would protect each other’s investment in respective countries, while the second aimed at promoting scientific, technical, and economic cooperation in the agricultural fields (Hasan, 2002).
Economic relations with Turkey came under strain, when Pakistan cancelled the Islamabad-Peshawar Motorway project, which was awarded to a Turkish firm. Compensation to the Turkish firm was discussed between the Turkish Prime Minister Demirel and Pakistani Prime Minister Benazir Bhutto during third ECO summit in Islamabad. (Ahmad, 2000)
In March 1995, a Turkish company won the bid for construction of the Ghazi Brotha Dam. Turk sicmen has won the contract for the supply of $30 million worth of cables to Pakistan Telecommunication Corporation. Another Turkish group of companies must win a $30 million tender of WAPDA. Agro Auto of Pakistan and ECE Mason of Turkey entered into a technical cooperation agreement to manufacture motor bikes in Pakistan.
Ahmet Cavusoglu, chief Ankara Chamber of Commerce, told Dawn newspapers, low volume of trade showed that their governments and businessmen had failed to translate into concrete action the tremendous goodwill that exists among the two people. In 1996, Turan Esen, the leader of the visiting Turkish delegation said in his address to a special meeting of National Highway Authority of Pakistan that Pakistan-Turkish relations were time-tested and required to set an example of friendly relations. He pointed out that the highways were highly significant as regards to international trade traffic among ECO states. This he said would help the economies of ECO member states to prosper (Hassan, 2002).
President Demirel visit to Pakistan December 1997
President Demirel visited for second time in Pakistan within span of a year, when he reached Pakistan on 18 and 19th of December 1997 for the inauguration ceremony of Islamabad-Peshawar motorway. That venture was awarded to a Turkish firm M/S Bayinder. The Turkish President similarly witnessed the signing ceremony of Pehur High Level Canal Project in Peshawar, which was sanctioned to another Turkish company M/S STFA.
Pakistan’s Foreign Minister visited Turkey from 6th to 9th of August 1997. The Foreign Minister with his Turkish counterpart Mr. Ismail Cem discussed in details and met with Prime Minister Mesut yilmaz and President Suleyman Demril. After one year Prime Minister Nawaz Shrif also paid a visit ot Istanbul (Turkey) to participate in the First D-8 Summit which had to be started on 15 June, 1998 (Pakistan Foreign Relations, 1997).
In April 1998, Turkish Foreign Minister Visited Islamabad and stated that,’The trade volume of the two countries with the rest of the world is some $100 billion, Unfortunately the annual trade between them is just $ 150 million, which is very small as compared to their total world trade figure and the very close political ties that the two countries enjoy’ (The Nation April 3, 1998)
An Overview of Turkey Trade in 1990’s
In the decade of Nineteen hundred nineties the commercial tendencies between these two brotherly states was on mounting tendency. The exports from Pakistan to Turkey were increased from Rs. 1866 million to Rs. 3162 million in the year 1990-91 to 1999-2000. Imports from Turkey to Pakistan also enhanced from Rs. 1111 million to Rs. 5516 million during that period. It proved that during this decade export between these two partner countries was on growing tendency with the deficit balance was Rs. 4677 million. Turkey remained the major trade partner of Pakistan in whole era. The major export items of Turkey to Pakistan among others industrial goods (especially communications material like cables, etc. chemicals and food stuff). Pakistani exports to Turkey were consisted of cotton yarn and other textile products mainly. It was also observed that level of commercial exchanges does not reveal the real trade potential between two countries. Trade of Turkey with Pakistan was very nominal, considering its 1996 level of trade volume amounting to US $ 64 billion. Turkey produced much stuff that could be appealing for the Pakistani markets. In this regards its worth mentioning that goods, especially electronic appliances for home use like T.V. sets, refrigerators, washing machines etc. which were exported by Turkey to many European, Gulf and other countries. They are quality products with normal prices. On the other hand, Turkish automobiles industry is flourishing with eight prominent multinational companies manufacturing more than 200,000 vehicles a year in the country (Sheikh, 2002).
Chapter 4: Pakistan-Turkey economic, trade and investment ties within bilateral framework 1999-2014
During 1999, bilateral relations received a momentous increase when President Musharraf became took the reign of Pakistan in October 1999. He was a great admirer of Mustafa Kamal Ataturk, the founder of modern Turkey, whom he idealized as a model statesman. Exchange of frequent visits by high-level authorities was the ample proof of the growing relationships between these two countries. President General Pervaiz Musharaf visited Turkey in November 1999. The purpose of this visit by the President was to brief the Turkish leaders about the change in the political scenario in Pakistan and improvement in bilateral relations. Since then a number of high-level bilateral visits have taken place. During the meeting in these visits a unanimous opinion was developed on different regional and international issues was made. (Hussain, 2008).
During 1999 General Parvez Musharaf was appreciated that the Turkish companies’ participation in development of infrastructure and invited Turkey to bring more investment in this field. The need to discover new horizons and augment bilateral trade was also stressed. Incidentally, Turkish investment in infrastructure projects in Pakistan amounted to about US $ 1.6 billion, while the trade between two countries was around $ 133 million (Pakistan Foreign Relations, 1998-99).
At that time the Turkish special Ambassador Candan Azer visited Pakistan in February 2000 to communicate a message of Turkish President to the Chief Executive of Pakistan. Turkish Minister of State and Chairman Turkey-Pakistan Joint Ministerial Commission also visited Pakistan from 10-14 April 2000. Further inaugurating Chashma Right Bank Canal Project (awarded to a Turkish firm), he made depth discussion with the Pakistan’s Minister of Commerce and Communication. At the same time Pakistan-Turkey Military Consultative Group hold on its 11th meeting at Rawalpindi in November 2000. A high-level Turkish delegation was participated in Pakistan Military Hardware Exhibition, IDEAS 2000, held in Karachi in November 2000 (Pakistan Foreign Relations, 2000).
On 16 December 2001, Turkish Foreign Minister, Ismael Cem visited Pakistan on his way to Afghanistan. During his stay in Islamabad, he entitled on the Pakistan’s Foreign Minister and seized discussions on bilateral issues of mutual interests.
During the year 1999-2000 the trade status between Turkey and Pakistan were to the tune of US $67 million only. Pakistan’s exported to Turkey cotton yarn, cotton fabrics, synthetic fabrics, finished leather, sports goods, toys, carpets, oil seeds, rice etc. The main items of import from Turkey were machinery parts, and vegetables preparations, crude rubber, synthetic fiber, aluminum and steel, transformers, etc. (Pakistan Foreign Relations, 2001).
Turkish Prime Minister Erdogan visit Pakistan June 2003
On 15 June 2003 Turkish Prime Minister Recep Erdogan on his three days visit to Pakistan discussed enhancing the regional security and trade and economic links. Mr. Erdogan met with his counterpart, Zafarullah Khan Jamali, and President Musharraf. Turkey and Pakistan are ideologically and politically similar so they need to strengthen their economic ties as well. The progress of boosting trade between both countries was also observed, that were stand at a meager $170 million in a year. Turkish premier brought with him a team of more than one hundred business personas in search of some new trade treaties and promoting new markets (BBC News 16 June 2003).
During visit the Turkish PM was allied by 110 businessmen in his delegation. It showed that the deep concern of Turkish government to establish trade and economic ties with Pakistan. Three Memorandum of Understandings on road transport, drug trafficking and environment were signed between Turkey and Pakistan (Hussain, 2008).
President Parvez Musharraf visit Turkey January 2004
From January 19-21, 2004 President Musharraf visited Turkey. It was a very important visit in strengthening two-sided associations in key sectors. President Musharraf became the first Pakistani leader who got the honor of addressing to the Turkish parliament. On January 20 these two countries settled to build up cooperation in combating with terrorism, enhancing economic and political links and improving collaboration in defense, health and banking sectors. Four agreements and a Memorandum of Understanding were signed among the two countries. The two sides emphasized on expansion of economic and trade assistance and decided to discover ways and means in different areas especially in the defense field. The economic and commercial ties were main focus of talks. The purpose of agreements was to gain the huge potential for developing bilateral trade to the figure of $1 billion by 2005, President Musharraf said on the occasion (Dawn January 20, 2004).
On January 21 addressing to a meeting in Istanbul which was hosted by the Foreign Economic Relations Board and Turkish-Pak Business Council Istanbul, President Musharraf emphasized that with a push of positive economic meters and its strategic location, Pakistan was qucikly rising as the ‘economic crossroad’ of Gulf, South and Central Asia, and offering her foreign investors a lucrative passage for their capital. He referred to bilateral trade just around $200 million between these two nations that is not in accordance with their excellent political and diplomatic ties. He counted incentives that Pakistan offered to the foreign investors and gave the investors a a short briefing keeping in view of Pakistan’s economy. (Dawn January 22, 2004).
Establishment of Joint Investment Company, January 2004
In order to enhance economic and trade links between Pakistan and Turkey; they agreed to start a joint investment company on January 22, 2004. The investment company will have a preliminary equity of $25 million to be common by the two nations. Pakistan decided that the entire investment would come from the public sector while Turkey was to decide the amount should be from its public or private sector. There would be a very gigantic impression of company as it would offer an institutional mechanism to the economic and trade relations between Turkey and Pakistan. The company offices were established in Karachi and Istanbul and the company will highlight projects in both countries for investment and trade, Finance Minister Shaukat Aziz told reporters (Dawn January 23, 2004).
Framework accord on PTA signed January 2004
On January 22, Preferential Trade Agreement (PTA) was signed between Pakistan and Turkey to widen trade ties and develop trade size to $1 billion two years. The agreement was signed between the two countries to promote privileged trading and build up intra-regional economic collaboration. Both countries consented to recommend duty concessions for them on about fifty chosen products at six-digit level of HS code according to the agreement, For extra concessions, the demand lists contained almost three hundred commodities at 6 digit level HS code for considering the two countries decided to provide within one month of the confirmation of accord which would outline the foundation for additional trade negotiations and offering tariff concessions. It was said that the preferential exchange under the treaty shall be retained after the Trade Agreement (ECOTA) signed during the second ministerial meeting of commerce minister come into force.
Both countries contented to enforce across the board tariff concession of twenty five per cent on the tariffs applicable to products originating from the ECO countries under ECOTA for all the products traded between Turkey and Pakistan, if some difference is noticed in the rates then lower of the two will be implemented.
As per accord decided to reduce tariffs and eradicate non-tariff barriers to trade.They also valued the spirit of both governments to augment the echelon of joint trade to approximately $1 billion within a period of two years. It was hoped that there are many possibilities of investment opportunities in the areas of defense industry, food processing and packing, automotive industry and auto-parts, household appliances, construction materials, textiles, leather machinery and finished products, sports goods and surgical instruments etc. Both sides stressed on assessment of opportunities of spreading a regular shipping line between Karachi and Istanbul (Dawn January 23, 2004).
Prime Minister Shaukat Aziz Visit Turkey May 2005
On 31 May, 2005 Prime Minister Shaukat Aziz paid a formal trip to Turkey on the request of the Turkish Prime Minister, Mr.Recep Tayyip Erdogan. Both prime ministers witnessed signing of an accord on collaboration in the areas of science and technology by the Law minister and Turkish Foreign Minister Abdullah Gul. Turkish Prime Minister articulated his discontent over the size of trade between the two nations, and hoped to discuss the measures to improve the same. Both countries were also consented to grow air traffic to four flights a week with a longing to bring the number to seven, and also starting direct flights between Istanbul and Karachi. Addressing at special congregation of Turkish businessmen, the Prime Minister invited Turkish businesspersons to focus on Pakistan, which provides an exceptional prospect to investors through its important strategic place and growing economy policy (Haq, 2010).
Turkey’s aid during earthquake in 2005:
On October 20, 2005; Turkey proclaimed a relief package of $150 million for the earthquake stricken people of Pakistan. Turkish Prime Minister Recep Tayyip Erdogan while he addressed a joint press conference with Prime Minister Shaukat Aziz announced this relief package from the Government of Turkey for their Pakistani brethren. The relief package would contain financial assistance of $100 million and relief goods worth $50 million, including one million blankets, 50,000 tons of flour and 25,000 tons of sugar. He said Turkey would also render assistance in the reconstruction and rehabilitation of affected people and said that he brought with him construction and housing experts. Turkish premier said his country had got good technology in constructing quake-proof buildings and they would like to share the experience with Pakistan. Turkey would provide technical help in several other fields, he said (Dawn 21 October, 2005).
Trilateral Summit April, 2007
On 29 April, 2007 President General Pervez Musharraf, of Islamic Republic of Pakistan visited Ankara on the request of Ahmet Necedet Sezer, the Turkish President. The President of Turkey also invited his Afghan counterpart Mr. Hamid Karzai. President General Pervez Musharraf and President Hamid Karzai held broad, friendly and useful talks, together with President Ahrnet Necedet Sezer and Prime Minister Recep Tayyib Erdogan, on regional and international issues.
Ankara Declaration was issued on that occasion. During the talks, the Presidents of Pakistan and Afghanistan decided to carry on the dialogue and cooperation process in all proportions between the two countries and endeavor collectively to augment prosperity of their peoples. In order to supervise development on the decided affairs and coordinating the confidence-building measures and mechanisms, both the Presidents established a “Joint Working Group (JWG)” with the participation of high level representatives of the three countries (Haq, 2010).
Visit of PM Yousaf Raza Gilani to Turkey October 2008
On 27 October 2008 the Premier of Pakistan Syed Yousuf Raza Gilani visited Turkey. During discussion a comprehensive plan was chalked out to encourage economic and trade, defense, scientific and technological; and cultural cooperation. It was also determined to develop ties by promoting transportation and communication links, including additional air links. Keeping in view the special geo-economic and geo-political importance of these countries, proper attention would be given to road and rail links. They decided to augment their bilateral cooperation to support regional peace, development and prosperity. Pakistan showed gestures of admiration for the important role of Turkey in establishing peace in Afghanistan (Haq, 2010).
On February 24, 2009, in order to enhance military cooperation Turkey offered to start joint ventures in defense production with Pakistan. At that time Gen Hasan Igsiz, of the Turkish General Staff addressed during the sixth Pakistan-Turkey military dialogue at the ministry of defense Islamabad that the two countries could complement each other in the field of technology and military. Gen. Hasan, who led a 17-member Turkish military delegation and Pakistan’s Defense Secretary Lt-Gen (Retd) and Syed Athar Ali chaired that meeting jointly. The Turkish general said that his country wanted to sponsor ‘sustainable security and stability’ in the area, adding that Pakistan and Turkey must improve the defense industry cooperation (Dawn February 25, 2009).
On March 31, 2009, President Asif Ali Zardari visited Turkey to attend the third Turkey-Pakistan-Afghanistan trilateral summit where leaders of the three states would discuss the ways to enhance assistance on security, economy and development matters. Pakistan Foreign Office issued a statement endorsing another issued from the office of the Turkish President Abdullah Gul’s office stated ‘there would be an exchange of ideas with regards to the security situation in the region. And on future common projects which would aim to contribute to stability, security and the welfare of the region’ (The News April 1, 2009).
Turkey’s assistance for IDPs in 2009
Islamabad appreciated that Turkey once again took the lead to provide the badly needed assistance to Pakistan’s almost 3million Internally Displaced Persons (IDPs) by announcing a further $10 million. The Turkish Foreign Minister, Ahmed Davutoglu on June 10, 2009, also appealed the international community and the Muslim countries to show concern for Pakistan and offer all out help for these Internally Displaced Persons. Earlier, Turkey had pledged $100 million at the Tokyo Donor’s Conference.
The Turkish Foreign Minister Prof Ahmad Davutoglu also visited Punjab C.M Mohammad Shahbaz Sharif at Chief Minster’s Secretariat in Lahore. Important matters like promotion of trade and economic relations between the two countries were discussed in that meeting. Along with these bilateral affairs, rehabilitation process of IDP’s of Swat region was also discussed in that sitting. Chief Minister of Punjab showed his sentiments of deep gratitude for the Turkish government for her assistance in the relief and rehabilitation of IDPs. On the other side Turkish Foreign Minister Prof Ahmad Davutoglu said that helping and providing assistance to the IDPs is moral responsibility of Turkish people and Turkey wants to arrange a conference of Friends of Pakistan in this regard(Dawn June 11, 2009).
To modernize forty two F-16 jet fleet of Pakistan a deal of worth around $75 million was made by a Turkish defense company Tusas. The company said in a written statement that the project would begin in Oct 2010. Tusas had also modernized Jordan’s F-16 fighters in a pact approved in 2006. (The Nation 30 June, 2009).
On 8 September, 2009, President of Islamabad Chamber of Commerce and Industry (ICCI) Mian Shaukat Masu remarked that combined projects should be encouraged in processing, manufacturing and export of ceramic tiles, marble and other precious stones by Pakistan and Turkey; it would generate healthier results for both nations. He stated while addressing a gathering with a two members business delegation of Turkey comprising Ozlem Dogan and H. Noyan Altin,. Mian Shaukat Masud said that Turkey can play an important part in diversifying Pakistan’s precious stone export markets. At that time, the members of Turkish business delegation stated that they were on an tentative trip to Pakistan as they consider that there is wonderful capacity of cooperation between the two countries in ceramic tiles and precious stones business (The News September 9, 2009).
On Oct 14, 2009, General IIkar Basbug, commander Turkish Armed Forces, along with a delegation visited Mingora, Swat. They were given a brief presentation about army’s successful operation in Swat. The Commander Turkish Armed Forces applauded the spirits and valor of soldiers and officers of Pakistan Armed Forces, who presented great sacrifices during operation Rah-i-Rast for bringing harmony and stability in that region.Thus General IIkar Basbug became the first ever foreign head of armed forces to visit Swat, it shows the depth of the relationships between the people and armed forces of theses brotherly nations (Dawn October 15, 2009).
Pak-Turkey JMC meeting October 2009
On Oct 15, 2009, Pakistan and Turkey consented to instigate the course for settling the Free Trade Agreement (FTA) as they believed that both of these two states have the abilities to amplify their bilateral trade up to $2 billion by the end of 2012. These two sides also reached the considerate at the session of 13th of 2 days Pak-Turkey Joint Ministerial Commission (JMC) which was conducted in Islamabad. Addressing with the media personals after signing a memorandum of understanding (MoU), Commerce Minister Makhdoom Amin Fahim and Turkish Minister of state for Science and Technology Mehmet Aydin showed their determination that the two countries would pursue negotiations to finalize the FTA as soon as possible. However, no time-frame had been fixed in this regard.
According to that MOU, both states were agreed that regardless of global recession, $2 billion bilateral trade target could be targeted by the end of 2012. The JMC also decided to enhance further step of the Pakistani-Turkish Business Council. The council ought to held its meeting in the first half of 2010, as both sides gave priority of effectual performance of private sector platforms in enhancing bilateral trade (Dawn October 16, 2009).
Turkish PM Visit Pakistan in October 2009
On October 25, 2009 Turkish prime minister, made a visit to Islamabad for three days. Both nations decided to improve their broad strategic partnership and strengthen political, economic and trade cooperation, further more they committed to evolve strategies jointly to counter terrorism. Turkish Prime Minister Erdogan stated that the trade volume between the two countries will be enhanced which is currently standing at $741 million. He expressed his hopes that the trade volume would be enhanced to $2 billion in upcoming years.
Prime Minister of Pakistan Syed Yousuf Raza Gilani stated that the Turkish private sector can play a very important role in the progress of infrastructure and communication sectors. He projected a four points strategy to improve trade, economic and investment links between the two countries. The diverse similarities between our countries armored by the compact resolution of their headship decide to further strengthen cooperation in all areas of life.
‘Let us make trade and investment the central pillar of this cooperation,’ he said while addressing the inauguration ceremony of Pakistan-Turkey CEOs Forum; Turkish Prime Minister Recep Tayyip Erdogan also addressed with the gathering. Almost eighty chief executive officers of Pakistani and Turkish private companies attended that meeting.
While explaining the four points strategy P.M Yusuf Raza Gilani said that trade between Pakistan and Turkey was not proportionate with potential. He said that,’ through bilateral arrangements and early implementation of regional trade agreements such as the ECO Trade Agreement; the two countries open their markets to a greater range of products and services.’ He felt the need for establishing early settlement of Free Trade Agreement between the two countries. The prime minister said,’ both the countries should work out, as a key component of their common Asia policy, a common marketing and market development strategy for Eurasia.’ He further told ,’the train linking Islamabad to Istanbul was a strategic project, which should be accorded high priority.’ And lastly it was expressed the Turkish companies should do investment in expansion of Pakistan’s alternate energy and tourism sectors.
Turkish Prime Minister while addressing with that gathering said that both countries shared an excellent history of brotherly relations they are should be reflected in other fields like trade and economy. He further told that political leadership should try to augment economic cooperation, which was valuable for both nations. Turkish Prime Minister stated that there was great capacity for collaboration and ‘we have taken a step today to harness it’. (The News October 26, 2009)
Turkish Prime Minister Addressed the Parliament House
Turkish P.M Recep Tayyip Erdogan said that his country will assist Pakistan through thick and thin they will extend their cooperation to the best of their abilities to meet its needs in all areas of urgency.
Addressing a joint sitting of parliament at the Parliament House, the Turkish prime minister expressed, ‘You are not alone in your campaign against terrorism and extremism’. He was
the fourth foreign head of a state to address the joint sitting of parliament and the second Turkish leader after President Kenan Evren, who addressed the joint sitting of parliament in 1985. He further expressed his hopes to enhance the trade volume to two billion dollars by the end of 2012. He told that an agreement of road transportation would be signed between the two countries very soon. He frazzled the need for endorsing maritime transportation between the two countries.
Turkish Prime Minister Recep Tayyip Erdogan met with President Asif ali Zardari at the Presidency and there they discussed the crucial matters in lieu of joint relations, strategic partnership and improvement in economic activities. President Zardari respected and paid his gratitude about the initiative taken by Turkey for developing a Common Asia Policy and Turkish backing in strengthening relations of Pakistan with Central Asian states. At that time Turkish Prime Minister was awarded the great civil award of Pakistan Nishan-e-Pakistan by President Asif Ali Zardari at Presidency in Islamabad.
(The News October 27, 2009)
On October 26, 2009 the Turkish Prime visited Azad Kashmir capital along with P.M of Pakistan Sayyed Yousuf Raza Gilani and inspected several facilities built by his country after the 2005 earthquake. That was the second visit by Mr Erdogan to Muzaffarabad within four years. At that time he inaugurated the Khurshid National Library and planted a sapling in its lawn. ‘Turkey may be far away but its people keep you close to their heart,’ he said (Dawn October 27, 2009).
Establishment of Joint Project Group
On 27th of October, 2009 both countries shaped a joint project group to scrutinize important areas of cooperation for the encouragement of investment in mining, oil and gas, textiles, agriculture, livestock and dairy, energy, infrastructure and construction. That decision was to form a group was taken by following the meeting of Pakistan-Turkish CEO’s forum held in Islamabad to enhance economic cooperation and investment between Pakistan and Turkey. That forum, which was developed in meeting during the visit of the Premier of Turkey to Pakistan, emphasized a number of fields and divisions wherein investments can be performed between the two countries.
That visiting Turkish Minister of State for External Trade Zafar Caglayan in a meeting with Federal Minister for Investment Senator Waqar Ahmed made detailed discussions for encouraging cooperation in various sectors and strengthening economic relations.
Pakistan and Turkey also consented that the new ventures in the infrastructure, energy, manufacturing, oil and gas exploration, banking and allied services would be, especially focused to draw Turkish investors in Pakistan. The two countries stressed the importance of enhancing investment in all spheres, which is not at par with the need of Pakistan and which is also below the level of the deep historic friendship between the two nations. It was also decided to made the visits of leading businessmen faster in order to hurry the current of ventures in both directions (Dawn October 28, 2009).
The Commander of the Turkish Air Force, General Hasan Aksay called on Chief of the Army Staff (COAS) General Ashfaq Parvez Kayani at GHQ in Rawalpindi. He remained with the COAS there and discussed affairs of professional significance (The News December 9, 2009).
President Asif Ali Zardari on December 9, 2009, held a meeting with General Hasan Aksay, Commander Turkish Air Force at President House Islamabad. Many issues brought under conversation such as defense and army collaboration and enhancing of cooperation in other areas of interest. On that distinguished occasion , the Turkish Chief was conferred upon a Nisahan-e-Imtiaz (Military) for his services in escalating strategic and defense cooperation between the two states (Press Information Department, 2009).
On August 14, 2009 Prime Minister Yousuf Raza Gilani expressed his views at the launching ceremony of project’s trial chapter, ‘that the Islamabad-Istanbul container train service would lead to integration of Pakistan’s railway tracks into the region’s network and opening up of a trade passage between Europe on the one hand and South and Central Asia on the other.’ He further added that, ‘first train would cover 6,500 kilometers via Tehran in two weeks, carrying 20 containers 14 for Iran and six for Turkey.’ At that time Yousaf Raza Gilani evoked that, ‘ the transit trade framework agreement which was signed on March 15 that year in Islamabad between ECO member states requested that for its improving to transit traffic to promote proficient movement of goods and passengers.’ At the same time Mr. Ghulam Ahmed Bilour the Federeal Minister for Pakistan Railways stated that government officials and chambers of commerce are expected to work together in order to create an efficient environment for rising regional trade. He also stated that, ‘once the trial phase of the container service ended successfully, a passenger service would be launched in an effort to boost tourism in the region.’ Prime Minister Sayyed Yousaf Raza Gillani also organized a meeting with Mohammad Yahya Maroofi, the secretary-general of ECO, at the PM House (Dawn August 15, 2009)
According to August 2009 trilateral agreement between Pakistan, Iran and Turkey, ‘the freight train, which was consisted of 6,506 kilometre historic journey under the banner of Economic Cooperation Organization (ECO) from Islamabad to Istanbul via Tehran, completed its journey within 15 days on August 28, 2009. A senior official at the Ministry of Railways told The News that, ‘the train reached Istanbul on the evening of August 28 and was given a warm reception there next day.’ The train reached Tehran on August 23 and it took four and a half more days to cross the threshold of the suburbs of the Turkish capital. According to an estimate the goods train would take fifteen days to reach its destination, but it reached on its destination in fourteens and a half day . (The News September 1, 2009).
That STM Turkish defense company was working on the MILGEM project. Sava?? Onur, project manager of (MILGEM) said to the journalists on the 5th International Defense Exhibition and Seminar (IDEAS) 2008 in Karachi that this exhibition fair was a very excellent prospect for Turkish defense companies to advance their projects. ‘We also display MILGEM here, which is one of the most important projects that Turkey produced in the past few years.’
Mr. Onur stated that the project was of such a level that leave a lasting impact on the Turkish ship-building and defense industries. He said that, ‘Pakistan needs more ships like this. We are planning to carry out a joint project with Pakistan for these corvettes.’ At the same time he accepted that the three defense companies have combined forces to deliver Pakistan’s demand for corvette ships. That was known as a four ship corvette project. The first ship will be designed and prepared in Turkey, while the three others would be manufactured in Pakistan’s military shipyards. It was a remarkable step that as a really comprehensive project. At the same time he also stated that Turkey will start a two years defense project with Pakistan. (Pakistan Defence, 2009).
President Zardari visit Turkey January 2010
On 20 January 2010 President Zardari attended the Trilateral Summit which was held in Istanbul and discussed on Afghan issue and also bilateral matters. On January 24, both countries consented to enhance a US $ 20 billion investment in a project to improve a railway link from Islamabad to Istanbul, main intention of this decision was to swiftly transport cargo between Pakistan to Turkey and then to the Europe. This decision was taken in a meeting between Pakistani President Asif Ali Zardari and his Turkish counterpart Abdullah Gul. In that meeting President Abdullah Gul said that three companies of his country were interesting in the construction project of Bhasha Diamer Dam in Pakistan.
During that meeting President Zardari remarked that Transportation of cargo by Air is very expensive while sea trade was normally at a snail’s pace, therefore only cargo rail link can be a quick option to increase economic ties not only between the Turkey and Pakistan but Iran also. A broad presentation was also given to the Pakistani and Turkish Presidents on the 6,566 kilometers Rail project from Islamabad to Istanbul via Tehran, with 1,990 kilometers track situated in Pakistan, 2,570 kilometers in Iran and 2,006 kilometers in Turkey. It was also observed that this rail link would not only strengthen economic position of Pakistan but also it will connect the people these brotherly Muslim countries along with Europe also. At the same time it also said that Turkey will open a branch of a Turkish bank in Pakistan in Islamabad (The Nation January 26, 2010).
On March 10, 2010 Turkish President Abdullah Gul said during meeting with Speaker of National Assembly Fehmida Mirza that Turkey would carry on supporting Pakistan, as the friendship between the two countries is of momentous significance. Matters of reciprocal importance between the two countries and methods to boost up bilateral ties between the two countries were also discussed in that meeting. Speaker of National Assembly of Pakistna, Fahmida Mirza stated that both countries have resoluted to augment the level of joint trade from $690 million to more than $1 billion by 2010 (The Nation March 11, 2010).
Three Memorandum of Understandings Signed in March 2010
Both countries signed three Memorandum of Understandings in the areas of economic cooperation, agriculture and investment, President Asif Ali Zardari and Turkish President Abdullah Gul witnessed that ceremony which was held at Aiwan I Sadr Islamabad. By these MoU’s, both sides decided to encourage and support private sectors to launch proprietary enterprises and joint ventures with an objective of encouraging investment in fruit and food processing, commercial production of olives, corporate livestock farming, dairy industry, fisheries, poultry farming, cold storage facilities, commercial production of seeds and nurseries and commercial production of flowers, spices and medicinal herbs and their marketing. At the time of signing of MoU on commercial cooperation between Board of Investment and Turkish Investment Support and Promotion Agency, Saleem H. Mandviwala, Chairman Board Of Investment represented Pakistani Government; while the Turkish side was represented by Buyukelci Engin Soysal, Mustesar Yardimeisi. Under the MoU, the cooperation would be enhanced to boost investments between the Turkey and Pakistan. (Dawn April 1, 2010).
At the same time the two countries (Pak & Turkey) showed their commitment to bring the existing $690 million trade to over one billion dollar this year, even this was not proportionate with the prospective of their joint venture. Many Turkish businessmen visited Pakistan along with President Gul and it was hoped that keeping in view the global trends; economic interaction will assume center-stage in relations between Pakistan and Turkey. (Dawn April 1, 2010).
On 31 March 2010, Prime Minister Syed Yusuf Raza Gilani made a speech at Pakistan-Turkey CEO Forum and remarked that the cooperation between these two states of Pakistan & Turkey’s regarding economies could breed a much higher volume for mutual trade, than at present. To achieve that target we will have to target greater trade through preferential trade arrangements and improved market access to each other’s products. The target of bilateral trade of US $ 2 billion by 2012, set by the both nations could be achieved, provided we could take determined and concentrated efforts to achieve that goal. The concerned quarters in Pakistan would help and assist them in their endeavors. Pakistani businessmen can also discover the investment opportunities in Turkey and our Government would fully support and facilitate them (Haq, 2010).
Major Advancements during the Turkish President Visit
On April 1, 2010 Turkish President Abdullah Gull restated that they desire to enhance their special relationships to such an astonishing echelon that the building of their geo-economic advantages may erect on solid foundations. Both sides consented to act accordingly for the lofty precedence of further augmentation of multi-faceted and broad based cooperation among other means, increased connectivity, encouragement of bilateral trade and investment and further expansion of people to people contacts and exchanges. Both sides reached at the following agreements.
- Agreed to collaborate closely to upgrade and reconnect road, air and rail connectivity.
- Agreed to instigate periodic cargo train service between the two countries, starting from August 2010. Note with satisfaction the growth in bilateral trade, and reaffirm their desire to achieve the target of $ 2 billion trade volume by the year 2012, through among other means, early finalization of a strategic economic cooperation framework, as well as fast tracked trade facilitation and promotion measures, including early implementation of the Agreement on Abolition of Visas for Businessmen.
- Agreed to promote cooperation in the financial sector by encouraging Turkish and Pakistani commercial banks and financial institutions to open branches in the two countries.
- Agreed also to work jointly for further expansion and consolidation of ECO Trade and Development Bank. Agree to formulate a Plan of Action on Cooperation in the field of Energy including cooperation in the area of new and renewable energy.
- Agreed to further strengthen bilateral cooperation in the field of tourism, with particular emphasis on development of Pakistan’s tourism sector.
- Agreed to finalize the Protocol on the Establishment of the Turkish International Cooperation and Development Agency (TIKA) Office in Islamabad at the earliest.
Keeping in view the standing Military Cooperation Agreements, both countries consented to accelerate the pace of ongoing cooperation between Turkey and Pakistan in the area of military training and education, as well as promotion of trade and partnerships in the area of defense production and acquisition (Haq, 2010).
Pakistan Offered 225 acre land for Turkish Investors
On 5 April 2010 Turkish and Pakistani agreed to establish a partnership that was called from Turkish investments in Pakistan. C.M Punjab Mian Shahbaz Sharif in a proclamation dedicated an area of 225 acres of land to Turkish companies for building an industrial estate in Faisalabad. Turkey granted an aid of US $10 million and promised to grant further US $100 million at the Friends of Democratic Pakistan forum and vowed to support Pakistan through its private sector. Turkey’s Zorlu Energy company set up Pakistan’s first wind-based power project at Jhimpir, and Karkey Karadeniz which provide Karachi to 500MW from barge-mounted rental power to help Pakistan meet its energy requirements,. Turkish Union of Chambers and Commodities Exchanges (TOBB), and the Lahore industrial zone approved contract paving the way for Turkish investments in the area (The Nation 2 April, 2010).
Turkish donations during flood in 2010
During flood of 2010 in Pakistan, various Turkish institutions and agencies along with their civil society not only assisted their big help during the disaster but also helped in various projects of post-disaster relief to Pakistan flood affected people . Turkish State Minister Egemen Bag’? said that Turkey donated $ 5 million to the flood-hit people of Pakistan. Furthermore Turkish businessmen helped Pakistanis in this crucial time and they provided an aid of forty tons to the country flood struck areas, in addition with this they supplied to flood victims on urgent basis an ample quantity of clean water, food, blankets, tents and medical supplies. Thus Turkey became the first country to help Pakistan in these hard times. (Haq, 2010).
On February 26, 2011Asif Ali Zardari and Abdullah Gul both head of states agreed on accommodating their private sectors for enhancement in joint ventures in trade and communication and getting highest profit from their geo-strategic locations.
President Zardari emphasized on rising bilateral trade to US $ 2 billion and more by year 2012 via public and private sectors to cooperate with each other in major sectors such as infrastructure, engineering, telecom, mining and technology. He reiterated on the quick upgradation of the existing railway line between the two countries for delivery of speedy cargo trains to enhance trade between the two. Turkish President showed his contentment over Pak-Turk defense collaboration and recommended enhanced military to military interface, joint military exercises, training and related research and development arrangements. (Financial Post 27 February 2011).
Husnu Dilemre, Director General, Turkish Foreign Trade Under secretariat, Directorate General of Agreements stated that if the European Union administers its market access offer for Pakistan then Turkey will award a parallel offer to Pakistan too. He met with Muhammad Saeed Shafiq, President KCCI, who was in Ankara with KCCI delegation. Husnu Dilemre said that Turkey will render her full assistance to Pakistan in achieving GSP Plus status targetted by the EU. Being a member of Customs Union, Turkey is offering beneficial GSP regime to Pakistan beforehand.
Dilemre stated that, Pakistan requested to WTO for granting GSP Plus in the last meeting, which was fully supported by Turkey. Dilemre said, “Despite the fact that EU’s offer to Pakistan may have some affect on Turkish Export to EU, we continue to support Pakistan being a brotherly country.’ (Financial Post, 2011).
President Asif Ali Zardari visit Turkey April 2011
On April 11, 2011 President Asif Ali Zardari visited to Turkey, during his four days visit he said that both of these brotherly states enjoyed exceptional relationship and matchless brotherly affiliation, which has supreme and is unsurpassed. Asif Ali Zardari also paid his gratitude to President Gul for honoring him with the exalted ‘Devlet Nishan’ he stated: ‘It is a matter of great prestige and also a symbol of exemplary ties between Pakistan and Turkey.’ Earlier in their meeting President Asif Ali Zardari and Turkish President Abdullah Gul resoluted to carry on functioning hands in hand to utilize the enormous potential in industrial, energy, communication and infrastructure sectors of these countries to produce dazzlingly mounting economies. Both head of the states told that their talks concentrated upon running theIslamabad-Istanbul-Tehran freight train service. Turkish President told that this project will supply a trade route from Islamabad to European countries with goods ; which will take about eleven days time to reach Turkish markets. He further told that the railway track is already existed but it needs to be improved and both states showed their consent to support private sectors to produce funds for the project. Both of the dignitaries expressed their confidence that their mutual labors would help them in achieving the mark of enhancing their bilateral trade volume from $2 billion by 2012 (The News April 14, 2011).
President of Pakistan Mr. Asif Ali Zardari and Turkish Prime Minister Recep Tayyip Erdogan on April 14, 2011 vowed to fabricate a strategic partnership concentrating on achieving economic opulence and intensifying political ties. President Asif Zardari was invited to have a luncheon with the Turkish Prime Minister at his official residence. While discussing about the progress of the High Level Cooperation Council originated by the two states, President Zardari showed his deepest desire to shore up the institutional provisions which will assist in well-organized accomplishment of projects designed by the two neighbouring countries. They underlined the urge to enhance their cooperation in private sectors and to create joint ventures in areas of textiles, telecommunications, mining and technology (The News April 15, 2011).
President Zirdari’s visit during April 2011 brought a new development between the two countries when both presidents showed their consent to improve the existing Islamabad-Istanbul railway track, opening of the five Turkish banks branches in Pakistan, and intention for a currency exchange agreement to strengthen trade and commerce between Turkey and Pakistan. With the positive boost off by both Presidents, Turkish Union of Chambers announced to immediately promulgate a company to run that project. Main objective of this company would be to seek partnership with business groups of Pakistan and Iran to carry out the project. Asif Ali Zirdari President of Pakistan offered Turkish companies to participate in retrieval of 2.5 million acres of land under sea on the basis of public-private enterprise; as per that offer the Turkish companies would be allowed to initiate economic projects of their own on part of reclaimed lands. President Abdullah Gul while accepting that offer stated that he would soon send a team of private entrepreneurs to scrutinize the offer. (Pakistan Economist May 1, 2011).
On 19 May 2011 Pakistani Ambassador of Turkey Mr. Tariq Azizuddin in a meeting with a delegation of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) stated that for enhancing already annual bilateral trade between Turkey and Pakistan from the current level of US $997 million to US $ 2 billion till the end of 2012 endeavors are going on from both sides.
The delegation was escorted by Senator Haji Ghulam Ali, President FPCCI; they attended 66th General Assembly of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) at Ankara and visited several industrial facilities and business meetings with their Turkish counterparts (Turkish Defence, 2011).
On 19 July 2011 bilateral political consultations were started at the Foreign Secretaries’ level between Pakistan and Turkey were organized in Ankara. Pakistani delegation was led by Foreign Secretary Salman Bashir and the Turkish side by their Undersecretary for Foreign Affairs Feridun Hadi Sinirlio??lu. As visualised by Presidents of Pakistan and Turkey, both sides consented to discover the prospects of supplementary economic incorporation through enhanced railways and road connectivity that will be further expanded to Afghanistan and other Central Asian region. (Press Information Department, 2011)
On August 11, 2011 Foreign Minister Hina Rabbani Khar and her Turkish counterpart Dr. Ahmet Davutoglu in their exclusive meetings determined to thrash out modalities of entering into Preferential Trade Agreement. Both countries showed their agreement to discover the leeway of accomplishment in bilateral trade in local currencies which will furnish enhancement to on hand commercial activities. The Pakistani Foreign Minister said, ‘Economic dependency is the guarantor for our future.’ She further added that the cargo train venture between Islamabad and Istanbul, labelled as ‘Gul Train’ required to be followed up dynamically as it would reduce the costs of trade considerably. To enhance cultural and educational ties, Hina Rabbani Khar gave an offer that finest Universities of Turkey should start their campuses in Pakistan under public-private partnership. Dr. Davutoglu told that bilateral trade over the last six months reached US $632 million presentation a growing tendency. Both countries however consented that the speed of economic projects should be boosted up to meet the target of US $2 billion by year 2012 (Dawn August 11, 2011).
On October 20, 2011 Pakistan-Turkey Joint Business Council (PTJBC) agreed to boost the bilateral trade between the two country meetings which were attended by twelve members of Turkish delegation which was consisted of Textile, Construction, and Energy; that was held on the same day at Federation House, Karachi. Pakistani side was represented by a large number of members of Pakistan-Turkey Business Council with top businessmen of Pakistan. Mr.Amjad Rafi, Co-Chairman, Pakistan-Turkey Joint Business Council in his address threw a light on the activities of PTJBC and its role in the augmentation of mutual trade between the two nations. He emphasized that two countries should mark a preferential trading agreement for that purpose discussion should already have been initiated between the two countries. The visiting delegation was informed about the areas of wide significant for bilateral trade between the two countries including textile machinery & equipments, chemicals, agriculture chemicals, fertilizers, food and food processing, auto spare parts energy, mineral and mining resources, and textile industries. Huseyin Akin, Co-Chairman, Turkey-Pakistan Joint Business Council stated that, ‘on the investment side both Turkey and Pakistan offer tremendous opportunity as they have strategic geopolitical location and highly qualified and productive labor force.’
Turkish trade volume in Pakistan during 2010 was nearly 1 Billion USD and in the first 8 months of 2011, Pakistan achieved 850 million USD; he further expressed his hopes that the trade volume will surpass one billion USD by the end of 2011. He told that Turkish companies were prepared to oblige their Pakistani counterparts in construction, energy, textiles, dairy farming and food processing industries. During the technical session of their meeting most of the participants from Turkey and Pakistan showed their concerns that the safeguard duty imposed by Turkish side would badly affect exports of Pakistan textile raw materials to Turkey; which is currently making triumphant situations for both nations.(News Tribe October 20, 2011)
Currency Swap Agreement November 2011
On November 1, 2011 the State Bank of Pakistan and the Central Bank of Turkey reached a one billion dollars currency exchange arrangement in Istanbul during President Asif Ali Zardari’s visit of Turkey. Yaseen Anwar governor State Bank of Pakistan and Turkish Central Bank Governor Erdem Basci signed the accord in presence of President Zardari and his Turkish counterpart Abdullah Gill. It was said an announcement of SBP(State Bank of Pakistan); that, ‘the currency swap arrangement has been concluded in Pakistani rupees and Turkish lira with a size amounting to $1 billion in equivalent of local currencies.’ The nucleus purpose of that pact was to sponsor bilateral trade in local currencies of the two countries for upcoming three years. The central bank said that, ‘this was a landmark transaction between the two central banks and was the first time they had executed such an arrangement.’ (The Express Tribune, 2011 November 2).
On 19 November, 2011 both countries felt the need to encourage collaboration in agriculture, industrial, trade, science and other sectors targeting on technological development. A consensus was developed at a meeting between a thirty members Turkish delegation and the Executive Committee Members of Lahore Chamber of Commerce & Industry.
At that time the Turkish representatives showed in optimistic attitude that the economic ties between the two countries would grow and it will help in developing a mutually beneficial relationships between the both countries. Head of Turkish delegation & Vice President Business Tuskon Federation Dogan Kaynak in his address to the meeting; focused on the great fondness of Turkish people which they hold for Pakistan. Tuskon further told the delegations, that during his visit to Pakistan; he received a very comprehensive information on prospective business chances and that they would be coming back with excellent investment proposals to Pakistan. Mr.Shahzad Ali Malik , the LCCI President during his address on that occasion appreciated the spirit of the Turkish delegation for celebrating Eid with flood victims in Pakistan. He stated that LCCI was taking instant and tangible steps to enhance the size of trade between the two countries from its current level of $663 million to the benchmark of $2 billion dollar benchmark. Previously, the LCCI signed an MOU with ANEED (Anatolian Businessmen Federation) which was functioning under the aegis of Business Tuskon Confederation. ANEED was basically a Turkish based federation which was committed to make an important contribution to the economic development of the country via promotion of trade and industry. (The Pakistan Today November 21, 2011).
An Overview of Pakistan-Turkey Reade in 2011
Pakistan stood the 78th largest export partner of Turkey in 2011; Exports of Turkey to Pakistan were 213 million US Dollar in 2011 at that time with a decline of 14% (248 million USD) of 2010. Subsequently after 2005, in which ‘Asia-Pacific Commercial and Economic Relations Development Strategy’ of Turkey was initiated; the exports of Turkey to Pakistan got a rising tendency by 14% (187 million USD). The top export categories (2-digit SITC) for 2011 were textile yarn and fabrics (7.6%); along with miscellaneous manufacturing articles (6.5%); dairy products and bird eggs (6%); cereals and cereal preparations (5.1%), and machinery for particular industries (4.5%). Pakistan was 45th largest import partner of Turkey in 2011. Turkey’s imports from Pakistan were up to 873 million USD in 2011, with an increase of 16% (750 million USD) as compared to 2010. Beside that imports from Pakistan had increased to the increasing level of 177% since 2005. The top five imports categories (2-digit SITC) during the year 2011 were: textile yarn, fabrics, made-up articles (59%); plastics in primary forms (13%); articles of apparel, clothing accessories (13%); organic chemicals (5%) and leather, dressed fur skins (2.6%). The trade volume between Turkey and Pakistan increased up to one billion USD in 2011, and the trade shortfall against Turkey is 659 million USD, which was enhanced by 31% (502 million USD) as compared to 2010. By the end of 2011, Turkish FDI stock in Pakistan was thirty millions USD. Besides, Turkish Foreign Direct Investment (FDI) stock in Pakistan was fifty two millions USD between 2005 and 2011. It was reported that Turkish direct investment in Pakistan was led mainly in the energy, finance, and infrastructure and contracting sectors. FDI of Pakistan in Turkey was 88 million USD towards the end of 2011 (Ministry of Economy, 2013).
Turkish PM Recep Tayyip Erdogan addressed Pakistani parliament May 2012
Turkish Prime Minister Recep Tayyip Erdogan addressed at the joint session of Pakistani parliament for the second time in four years on May 21, 2012, thus he became the first international leader to speak to legislators of Pakistan twice. He promised that Turkey will always assist Pakistan through thick and thin. This session was also addressed by Pakistani Primier Minister Yousaf Raza Gilani and Leader of Opposition in National Assembly of Pakistan Chaudhary Nisar Ali Khan. All the public representatives showed proud feelings of a strong Pakistan-Turkey relationship and expressed their hopes to enhance these cooperative relationships to ensure peace and stability in the area. The Turkish premier showed his great pleasure on addressing the parliament for the second time and showed his gratitude to the Speaker of National Assembly Dr Fehmida Mirza and other parlimentarians for giving him the honor. He also stressed on the importance of a rapid boost up in bilateral trade to $2 billion for economic opulence of the two countries (The Daily News May 22, 2012).
2013-14 as the Pak-Turkish Cultural Year
The Cultural Cooperation working group learned that the year 2013-14 would celebrate as Pak-Turkish Cultural Year. In the meantime the Turkish government showed her concern to invest in the power sector in Pakistan and ensured to encourage their investors to assist in resolving the current energy crisis faced by Pakistan. The Turkish Minister for Energy and Natural Resources, Taner Yildiz, during his meeting with Minister for Water and Power Syed Naveed Qamar gave an official offer to help in energy sectors of Pakistan. Mr.Yildiz stated that the Turkish government was ready to work in collaboration with Pakistan and to address the energy crisis. He told that, ‘Our investors are interested in investing in Hydro, wind and other renewable resources to develop this sector.’ He officially invited a ministerial delegation of Water and Power of Pakistan to pay a visit to Turkey and brief the investors through organizing conferences and meetings. The Turkish government would facilitate and encourage the investors to invest in Pakistan; he added (The News May 22, 2012).
Turkish Prime Minister Erdogan said that nine years ago Pak-Turkey trade volume was $175 million, which had now reached $1 billion. He hoped that it would reach $2 billion in the near future. He said to attract foreign investment; a country should provide favorable atmosphere and strong economy. Separately, Turkish Prime Minister Mr. Erdogan was awarded an honorary degree of doctor of philosophy in international relations by the Quaid-e-Azam University. Acting President Nayyer Hussain Bokhari conferred the honorary PhD degree to the Turkish Premier in a special convocation held at Aiwan-e-Sadr (The News May 23, 2012).
56.4 MW Wind Power Project by the Turkish Company
Both brotherly states signed financial closing documents for setting up of a first ever 56.4 MW wind power project that would start generating electricity from December 2012 onwards. The ceremony of signatures of that accord was conducted at the office of Alternative Energy Development Board (AEDB) where representatives of AEDB and Zorlu Energy signed the documents. The equipment and turbines for the project had been arrived in Karachi and construction on that project had already been started. The representatives of Zorlu said that the project would be completed by December 2012 (Dawn May 30, 2012).
On September 16, 2012 the Mustafa Babur Hizlan ambassador of Turkey to Pakistan said that both countries will be able to meet the bilateral trade target of $2 billion by the end of the year. The ratio of Pakistani exports to Turkey would be even less than last year. He showed his disappointment on the issue that the governments have not signed a Preferential Trade Agreement and the flow of Pakistani textile goods into Turkey had also been tightened. He also stated that measures of Turkey to increase the import of textiles between the countries with whom it does not have a free or Preferential Trade Agreement. He stated that, ‘Both countries have excellent relations at the government and administration levels but our trade relations are less than what they ought to be.’ (The Express Tribune September 17, 2012).
Trilateral Memorandum of Understanding
A Trilateral Memorandum of Understanding (MoU) was signed among the governments of Turkey, Afghanistan and Pakistan to enhance and augment trade and economic cooperation among all these three countries for the joint interest. That MoU was signed during the seventh trilateral Summit of Afghanistan, Pakistan and Turkey in Ankara, it provided a base for the establishment of Trilateral Trade Council, and will further help for advancement of foreign investment, rising and enhancing commercial ties and reconnoitering possibilities for cooperation in services sectors among the three countries. The MoU would also assist swap of information focusing on their respective legislation on trade and economic activities. That ‘Trilateral Trade Council’ will supply a handy platform to talk about advancement of regional, bilateral and trilateral cooperation besides joint practices on the issues of commercial and economic relations, trade policy matters and trade facilitation among the three countries. Under that framework of ‘Trilateral Trade Council’, the three governments agreed to supply the required facilities to the businessmen of the three countries to amplify trade and to solve the issues emerging in this regard. The entrepreneur and organizations of the three countries would also be stimulated to contribute in exhibitions, fairs and other promotional activities to sponsor the exchange of trade delegations and business representatives. The MoU was initially signed for a period of one year and it will be renewed automatically for successive periods of one year as per consent of the three countries (Dawn December 12, 2012).
On December 11, 2012 both countries agreed on early implementation of joint projects’ boosting private sector and providing facilitative trade mechanisms to extend bilateral relations further. That consensus was evolved at President Zardari’s separate meetings with Turkish President Abdullah Gul and Premier Recep Tayyip Erdogan on the sidelines of the seventh Trilateral Summit of Afghanistan-Pakistan and Turkey in Ankara. During discussion of their bilateral relations, President Zardari emphasized on the need for early completion of Pakistan-Turkey Preferential Trade Agreement, which will help enhancing of trade ties and meeting the mutually agreed trade target of two billion dollars. President Zardari stated that, ‘Pakistan wishes to reinforce defense ties with Turkey and urged the need to focus on joint defense production and allied research and development.’ President Gul insisted on early execution of bilateral agreements and joint ventures between the two countries to expand bilateral trade and economic ties in all respective fields. (The Daily Pakistan today December 12, 2012).
Inauguration of the Metro Bus System (MBS)
On 9th of February , 2013 the Metro Bus System , first rapid mass transit bus project of the country was launched. That was inaugurated by Chief Minister of Punjab Mian Shahbaz Sharif at a ceremony which was attended by Turkish Deputy Prime Minister Bekir Bozdag, Mian Nawaz Sharif head of PML-N and ambassadors of a various countries. Turkish companies cooperated with Pakistani local administration to build metro bus lines to facilitate 110,000 passengers in Lahore, Punjab in Pakistan.
At that time Turkey was practically facilitating the Metro Bus System, it also ensured investment from a leading Turkish firm in provision and operation of 18 metres long articulated forty five buses (Volvo China). The Turkish Deputy Prime Minister while speaking on the occasion stated that his country would continue to support Punjab and other provinces of Pakistan for launching such major innovative projects. ‘Turkey and Pakistan enjoyed cordial relations and trust each other. The countries helped each other on various occasions and we would continue to do so in future too.’ Mr. Bozdag said that Pakistan and Turkey could not prop up bilateral business relations in the past, the Metro Bus System would help in enhancing investment by the business community between the two countries. He hoped for maximum business relations among Muslim countries (The Dawn 10 February, 2013).
Agreement about Wastage Collection of Lahore City
Turkish companies shared their full cooperation with Pakistani local administration to build Metro Bus System in Lahore, Punjab. Meanwhile, three Turkish firms won another tender for the Solid Waste collection of Lahore city the second most populous city in country. All of these three companies will collect the waste of Lahore for seven years. The Punjab province is the major province in Pakistan, as it is the leading agricultural and industrial city. (Hurriyet Daily News 10 February 2010).
On 10 February, 2013 Turkey offered further support and investment in smooth functioning of Metro Bus Service in other cities of Pakistan, including Karachi. While talking with the daily The News, Turkish ambassador Mustafa Babar Hizlan expressed that Turkey is prepared to assist Pakistan in its efforts to advance its transportation system. (The News February 11, 2013).
On March 1, 2013 Pakistan and Turkey discussed potential of local production, co-production and shift of technology for defense-related products as per requierements of the both countries. Defense Minister Syed Naveed Qamar bebated these issues during his trip to Turkish Aerospace Industries (TAI) near Ankara with the Turkish Foreign Minister Prof Dr Ahmet Davutoglu. (The Nation March 2, 2013).
At the same time Deputy Director of Alternative Energy Development Board (AEDB) Naeem Memon stated that an additional wind power project of 56MW has been accomplished at Jhimpir. He was briefing the media persons on a trip to the project at Jhimpir. (The Nation March 3, 2013).
On 9 September 2013 Turkish Minister for Energy and Natural Resources Mr. Taner Y??ld??z in a meeting with Ambassador of Pakistan Muhammad Haroon Shaukat in Turkey ensured the full cooperation of his government for launching different development and investment projects in the energy sector. (Pakistan Embassy in Turkey September 9, 2013).
Visit of PM Nawaz Shrif to Turkey September 2013
On September 16, 2013 the Prime Minister of Pakistan paid a three days visit to Ankara to discuss several issues of great importance with the Turkish leadership. Prime Minister Nawaz Sharif received the highest Turkish Civil Award, ‘Medal of Democracy’. While receiving the award; Nawaz Sharif paid his gratitude in these words, ‘It is indeed a great honor for me to have been bestowed with the ‘Medal of Democracy’ by your Excellency’. During his visit PM Nawaz Sharif talked at the business forum and signed some agreements of great worth and Memorandums of Understanding with the Turkish government. Nawaz Sharif arranged special meetings with leading Turkish entrepreneurs and investors. Leading businessmen from Pakistan also attended the forum to explore mutually beneficial entrepreneurial opportunities.’ (Express Tribune September 17, 2013).
On September 17, 2013 from Ankara it was reported that both countries signed twelve Memorandum of Understanding (MoUs) and contracts to boost joint assistance in different areas of interest for the countries. That ceremony was witnessed by Prime Minister Muhammad Nawaz Sharif and his Turkish counterpart Recep Tayyip Erdogan. Both Prime Ministers signed the Joint Declaration of the third High Level Cooperation Council (HLCC) as well. Respective ministers from both the sides signed the agreements which included a Joint Declaration of the third High Level Cooperation Council (HLCC).’
- MoU for Cooperation and Information Exchange between the Under-secretariat of Treasury of Turkey and the SECP.
- MoU for Cooperation in Tax Matters.
- MoU on Strengthening Cooperation in the field of Education;
- Renewal of Cultural Exchange Programme.
- Agreement on the Establishment, Functioning and Activities of Cultural Centers.
- Framework agreement between Ministry of Housing and Works and TOKI.
- MoU for Cooperation in Technical and Vocational Training.
- Cooperation Protocol on Security.
- MoU on Civil Aviation.
- Agreement on the Transfer of Offenders.
- Protocol on Science and Technology Cooperation.
(Associated Press of Pakistan September 18, 2013)
Third High Level Cooperation Council (HLCC) meeting
Both countries consented to fortify cooperation in different areas of mutual interest, including trade, energy, infrastructure development, security, education, culture, science and technology as well as improving efforts for establishment of peace in the region. While addressing a joint press conference with his Turkish counterpart Recep Tayyip Erdogan after co-chairing the third High Level Cooperation Council (HLCC) meeting, Prime Minister Nawaz Sharif, declared the meeting ‘very productive’ and stated gladly that ‘there was unanimity of views’ between the two sides on different issues of bilateral and regional interest. Both sides consented to increase the number of flights between the two countries, so that they would be able to carry out the impetus generated by the HLCC meeting. During a meeting with Turkish Interior Minister Muammer Guler and senior security officials, the Pakistani premier stated that Pakistan would demand help and guidance from Turkey in successfully copping with the menace of extremism from the country. The Turkish premier said his country will broaden assistance to Pakistan in controlling cybercrimes and tackling with the issues of radicalization (Dawn September 18, 2013).
Nawaz Sharif attended a business forum in Istanbul with the participation of hundreds of Pakistani and Turkish businessmen, investors and entrepreneurs. Addressing the forum, Nawaz Sharif said Pakistan took measures to facilitate Turkish investment. He also said “A special cell established in my office to oversee and facilitate Turkish projects in Pakistan,’ On the other side Turkey’s Finance Minister Zafer Caglayan said in his speech that trade volume between the two countries extended a billion dollars in 2013 this figure was $175 million 10 years ago. Guner Ozkan, an analyst at the Ankara-based International Strategic Research Organization, said deepener economic ties between Turkey and Pakistan would help stabilize the region following next year’s NATO drawdown from Afghanistan. “The post-2014 era is a big question mark for the whole region. By improving its economic ties with Pakistan, Turkey wants to enable Nawaz Sharif to overcome its economic challenges and to create a stronger Pakistan in the region,” he told SES Turkey. “Creating an economically powerful Pakistan in the region would secure the peace and stability in Afghanistan at the end (SES Turkey September 20, 2013).
Security Cooperation Protocol
Turkish security and police experts would facilitate Pakistan to set up perfect security and surveillance systems in major cities, besides overhauling the recruitment and training schemes of cops in all the provinces, and take new techniques to check crimes, terrorism and lawlessness. In a new agreement called the Security Cooperation Protocol, signed between Pakistan and Turkey during Prime Minister Nawaz Sharif’s just-concluded tour to Ankara, Islamabad has sought the brother Islamic country’s help to overhaul the country’s policing by improving its recruitment, training, command and control systems and equipment. According to sources, the Turkish experts would also support Pakistan in developing a trustworthy CCTV-based security and surveillance system as was working in Ankara. (The News September 21, 2013).
M.O.U between Government of Sindh Turkish company for Wind Power Project
A Memorandum of Understanding was signed between Government of Sindh and STFA Yatirim holding A-S a Turkish company for accomplishment of a Wind Power Project in a humble but impressive ceremony which was held at CM house Karachi. The Secretary Energy Government of Sindh Agha Wasif Abbas signed the document of MOU for government of Sindh while Mr.Mehmet Orhan Unalan Project Development Director STFA Yatirim holding A-S signed on behalf of his company.
According to that MOU, the company had to carry out studies for installing up the wind masts at positions highlighted by it in survey and the project company was directed to located the site within two months where the project company will initiate survey of wind potential of the implementation of schedule for the Wind Power Project (PPP October 11, 2013).
Visit of Turkish Prime Minister Tayyip Erdogan December 2013
On 22 December 2013 The Turkish Premier Tayyip Erdogan visited Lahore in lieu of his official visit to Pakistan. Chief Minister of Punjab Mian Shahbaz Sharif greeted the Turkish Chief Executive at the Allama Iqbal International Airport. Shahbaz Sharif said on December 22, 2013 that the Pak-Turk friendship entered into a new phase. (The Daily Dawn December 23, 213).
On December 23, 2013at that time Turkish Premier Tayyip Erdogan stated that a new chapter of trade between Pakistan and Turkey would be opened from now and onwards while Pakistani Premier Mian Nawaz Sharif stated that Pakistan wants to bolster trade with Turkey. Both leaders also promised to enhance the joint trade, cultural, political and economic ties between the two countries. They expressed that both sides will work on joint ventures and invest in various areas of economy including energy, transport, communication, infrastructure, textile, automobile, agriculture, industry, food processing, dairy development, information technology, oil and gas etc in each other’s countries. Governor of Punjab Muhammad Sarwar, C.M Punjab Shahbaz Sharif, Federal Minister of Finance Ishaq Dar, Turkish Minister of Economy Zafer Caglayan and Turkish Minister for Transport were prominent among other ministers, parliamentarians, business tycoons from both sides. On that occasion both the sides also inked three Memorandums of Understanding between Punjab Industrial Department and Turkey Cooperation Agency; Pakistan Railways and Turkish Logistics Organisation; Pakistan Standard Quality Control Authority (PSQCA) and Turkish Standard Institution. Turkish Premier Mr. Erdogan told the participants that he had brought with him representatives of thirty nine prominent Turkish companies along with many trade delegations to Pakistan to discover investment opportunities. He mentioned that existing trade volume between Pakistan and Turkey is hovering around $83 million, which should be accelerated. The Turkish Prime Minister stated that Turkey was fully prepared to offer its economic development roadmap to Pakistan to bring the former on the path to swift development. He cited that the Metro Bus Project sponsored by Turkey had transformed Lahore into a modern and developed city. He further said that such like projects will also be initiated in twin cities Rawalpindi and Islamabad. Nawaz Shrif mentioned the commendable role of some 23 Pak-Turk schools for promoting cultural exchange and harmony between Pakistani and Turkish youth. The PM said Pakistan’s top exporting sector of textile was recently awarded GSP Plus (Generalized System of Preferences) status by the European Union, is a evidence to the confidence of the international market in quality of Pakistani products. Turkish textile companies with their better technological capabilities and investment competence could explore this sector for joint projects, he said. Nawaz Sharif also offered the Turkish businessmen and investors to put their money or make joint ventures in the vibrant and potential sector of tourism, food processing, agro-based products, dairy development, hotel/restaurant industry, resorts development and tour operations. (The News December 24, 2013).
On September 24, 2013, both brotherly nations consented to accomplish the Preferential Trade Agreement (PTA) in the first quarter of the next year 2014 to enhance bilateral trade. The understanding on various issues developed in a meeting between P.M Muhammad Nawaz Sharif and his Turkish counterpart Recep Tayyip Erdogan at the Prime Minister’s House. Later on in a joint press conference with his Turkish counterpart’ Premier Mian Nawaz Sharif expressed his confidence that this economic skeleton will considerably contribute towards the provision of better trade facilities between the two countries. He told that the both sides signed a number of MoUs which included a making of the Islamabad-Tehran-Istanbul ECO container train operative. He told that regular operations in regard of the train service it will introduce greater economic integration between the region and beyond. Turkish Prime Minister Erdogan stated that, ‘We are attaching great significance to bilateral visits in order to enhance cooperation in different fields. We want to enhance cooperation with Pakistan in areas of aviation’ railways and maritime. We plan to open a new consulate in Lahore. These steps will help cement our relations in future.’ Later on , both countries signed two MoUs in Islamabad for enhancing cooperation in sports and handling with natural disasters. Both of the premiers witnessed the signing ceremony. A joint statement was issued at the conclusion of the Turkish Premier Recep Tayyip Erdogan trip, it stated that the two sides desire to improve cooperation in social sectors, especially culture’ education and tourism. Pakistan and Turkey would provide and support investments by the private sector in both countries. Pakistan will particularly promote the Turkish private sector for investments in key sectors of energy’ especially coal’ hydroelectric and wind’ infrastructure including motorways’ roads and airports’ low-cost housing and urban development schemes and municipal services like public transport and solid waste management. They will persuade their respective state and private banks to open their branches in Pakistan and Turkey. Both sides would also increase assistance between educational institutions and increase the number of scholarships to for the students of these countries to get their undergraduate’ graduate and post-graduate level studies in the fields of engineering’ technology’ medicine and management sciences. Meanwhile, Turkish Premier Recep Tayyip Erdogan also visited President Mamnoon Hussain at the President House. Pakistani President arranged a luncheon in the honor of the visiting dignitary. Later Deputy Prime Minister of Mauritius Dr. Ahmed Rashid Beebeejaun also met President Mamnoon Hussain. Talking to Ahmed Rashid Beebeejaun, the president said Pakistan has given great importance to its relations with Mauritius and wished for the further progress in the joint relations.
(The News December 25, 2013).
After studying the progress made vis-a-vis strategic ties, Pakistani Premier Mian Nawaz Sharif and his Turkish counterpart Recep Tayyip Erdogan resoluted to increase cooperation in issues related to counter-terrorism strategies and security planning. A security cooperation protocol was signed by the two countries which provide an outline for security and counter-terrorism assistance. A joint statement was issued after the visit that stated that the two countries would search the likelihood of joint defense production and research (Dawn December 25, 2013).
Prime Minister Nawaz Sharif visit to Turkey in February 2014
Pakistani Premier Nawaz Sharif visited Turkey in February 12, 2014 on a three days trip to attend the eighth Pakistan-Afghan-Turkey Trilateral Summit in Ankara. He was greeted at the airport by Turkish Minister of Environment Idris Gulluce. The purpose of this eighth Trilateral Summit was ‘Sustainable Peace in the Heart of Asia.’ The Summit took place in milieu of significant political and security transitions in Afghanistan’ including Presidential and Provincial Council elections on 5th of April this year and the withdrawal of NATO/ISAF forces by December 31st of this year. The trilateral dialogue among Pakistan, Turkey and Afghanistan concluded on the same day with an understanding that security issues would be addressed on an urgent basis since regional peace and development hinged upon the eradication of terror activities. The three countries would enhance their cooperation for regional security, stability and development. The prime minister later reached Istanbul and he would hold meetings with the Turk businessmen and companies working in Pakistan in various fields. Turkey is keenly interested in making huge investment in Pakistan in infrastructure and energy sectors. Meanwhile, Pakistani Premier Nawaz Sharif held talks with Turkish President Abdullah Gul on the wide range of joint relations. Both leaders discussed thoroughly regional state of affairs and matters of common interests. Prime Minister of Pakistan Nawaz Sharif held a meeting with his Turkish counterpart Tayyib Erdogan. They discussed matters of common interest. Meanwhile, Chief of Army Staff (COAS) General Raheel Sharif held separate meetings with Commander of Turkish Land Forces General Hulusi Akar and Chief of Turkish General Staff General Necdet Ozel. (The News February 14, 2014).
Mian Muhammad Nawaz Sharif on February 14, 2014 invited Turkish businessmen to become development partners of Pakistan and ensured them the highest support of the Pakistani government to economic investors. Talking to leading Turkish businessmen, the Premier Nawaz Sharif said that Pakistan would push bilateral partnerships in the public and private sectors. He met with the representatives of leading companies including Ko’? Holding chairman Mustafa Ko’?, Nurol Group vice-chairman Oguz Carmikli, CEO and deputy chairman GAMA Holdings Hakan Ozman, Limak Holdings chairman Nehat Ozdemir, IC holding chairman Ibrahim Cecin, STFA chairman Alp Yalcin Taskent, Albayrak Group chairman Ahmet Albayrak, Zorlu Holdings chairman Ahmet Zorlu, ATA Holdings president Korhan Kurdo ??lu and Ciner Group CEO and chairman Turgay Ciner. The Ko’? group showed ardent curiosity to invest in electrical appliances manufacturing, dairy development and bus manufacturing. In a meeting with Limak Holdings, Prime Minister Nawaz Sharif stated that Turkish companies would be provided with all feasible assistance for setting up power plants. The company representatives told the Prime Minister that they had completed pre-requisites for investing in the wind energy; coal fired power plants in Gaddani Power Park and construction of highways on Build-OperateTransfer basis. The Norul group told that they had explored investment projects of Dasu Hydropower Project, Lahore-Karachi Motorway and coal based projects and hydropower project. The Istanbul Forum for Economic Cooperation between Pakistan, Turkey and Afghanistan insisted upon the need of strong logistic links among these countries to increase trade and economic activities in the region. The forum members, who met in Ankara on Thursday, discussed the potential of economic integration among the three countries.’ (Dawn February 15, 2014).
Both countries Pakistan and Turkey can play a vital role to each other for future betterment if both governments made their decision for the betterment of both countries masses in the field of economic, trade, health, and education. Turkey government at the current scenario have been willing to made good relations with Muslim World and keen interested to invest specially with Pakistan.
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