ISLAMABAD: Pakistan has offered 1,000 acres of land free of cost to Turkiye for establishing an Export Processing Zone (EPZ) in Karachi Industrial Park. The initiative aims to boost bilateral trade and strengthen industrial cooperation between the two nations.
The proposal, first introduced by Prime Minister Shehbaz Sharif during his April 2025 meeting with President Recep Tayyip Erdoğan, is expected to help both countries move closer to their ambitious $5 billion trade target.
High-Level Delegation Engages Turkish Officials
A high-level Pakistani delegation, including representatives from the Foreign Office, Special Investment Facilitation Council (SIFC), Board of Investment (BoI), and Sindh Export Processing Zone Authority, recently concluded a two-day visit to Istanbul and Ankara.
The team met with Turkish government officials and business leaders, promoting the Karachi EPZ as a cost-efficient hub for Turkish manufacturers. They also invited Turkish authorities to visit the reserved land at Karachi Industrial Park. Dates for the visit are expected soon.
Karachi’s Strategic Advantage:
Officials highlighted Karachi’s geographical advantage, strong infrastructure, and access to Middle Eastern and Central Asian markets. According to the delegation, freight costs for exports could drop significantly, from $4,000 to just $1,000 per ton, if Turkish companies relocate to the Karachi EPZ.
To strengthen cooperation, the delegation also toured Turkish EPZs in Istanbul and Ankara. Turkiye, with over 60 years of EPZ experience, shifted to privately managed zones in 1995, offering 20-year tax holidays, nominal land rates, and uninterrupted utilities. Pakistani officials believe this successful model could be replicated in Karachi.
Growing Pakistan-Turkiye Trade Relations
Bilateral trade between Pakistan and Turkiye reached $1.4 billion in 2024, reflecting a 30 percent increase from the previous year. Pakistan exported $352 million worth of goods, led by cotton and textiles, while Turkiye’s exports to Pakistan stood at $250.8 million, mainly machinery and chemicals.
Both countries are now focusing on expanding the Preferential Trade Agreement (PTA) and exploring the possibility of a Free Trade Agreement (FTA). Officials in Islamabad view the Karachi EPZ as a major step toward industrial collaboration, with Turkiye expected to relocate select manufacturing units to Pakistan for better market access and cost savings.
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