In an attempt to renew bilateral relations and encourage more cooperation, PM Shehbaz Sharif planned a three-day visit to Turkey. For the past 75 years, the two countries have enjoyed a partnership that has been mutually beneficial and centred around economic development, diplomatic backing and collaboration over security and defence issues. This attempt to continue that partnership must be appreciated, especially considering the economic woes that plague Turkey and limit opportunities on both sides.
The scope of discussions as part of the visit includes various sectors like investment, trade, health, education and culture. Pakistan and Turkey already have a strong collaborative relationship when it comes to defence. Both combined their resources to create the largest warship back in 2018 and routinely support each other’s territorial claims. To aid each other economically, both countries signed a Strategic Economic Framework that inspires innovation in the fields of technology, tourism, education and health. Furthermore, the Pakistan-Turkey Free Trade Agreement (FTA) is still in the works and there are expectations that some progress will be made on this front soon. All in all, even investment in Pakistan by Turkish companies has increased to $1 billion.
However, Turkey’s economy is in a volatile situation—much like ours—considering that its foreign trade deficit has almost doubled. The gap widened by 98.5 percent year-over-year and imports rose by as much as 35 percent. This has resulted in extremely high inflation and high energy prices. Dealing with this mess, it is unlikely that the country will be open to increasing state-to-state cooperation right now and will prioritise its own needs first. As far as this visit is concerned however, Pakistan can look to provide solid low-risk opportunities to Turkish investors, those that will be willing to inject funds when a recession is underway. For this, looking at problems at home in industry, trade and tourism must be prioritised. Economic downturn or not, Istanbul and Islamabad can assist each other in a variety of sectors, and it is welcoming to see both states continue to espouse this belief.
The scope of discussions as part of the visit includes various sectors like investment, trade, health, education and culture. Pakistan and Turkey already have a strong collaborative relationship when it comes to defence. Both combined their resources to create the largest warship back in 2018 and routinely support each other’s territorial claims. To aid each other economically, both countries signed a Strategic Economic Framework that inspires innovation in the fields of technology, tourism, education and health. Furthermore, the Pakistan-Turkey Free Trade Agreement (FTA) is still in the works and there are expectations that some progress will be made on this front soon. All in all, even investment in Pakistan by Turkish companies has increased to $1 billion.
However, Turkey’s economy is in a volatile situation—much like ours—considering that its foreign trade deficit has almost doubled. The gap widened by 98.5 percent year-over-year and imports rose by as much as 35 percent. This has resulted in extremely high inflation and high energy prices. Dealing with this mess, it is unlikely that the country will be open to increasing state-to-state cooperation right now and will prioritise its own needs first. As far as this visit is concerned however, Pakistan can look to provide solid low-risk opportunities to Turkish investors, those that will be willing to inject funds when a recession is underway. For this, looking at problems at home in industry, trade and tourism must be prioritised. Economic downturn or not, Istanbul and Islamabad can assist each other in a variety of sectors, and it is welcoming to see both states continue to espouse this belief.