Pakistan, Türkiye step up economic partnership, reaffirm $5bn trade ambition

Pakistan and Türkiye on Saturday agreed to accelerate efforts to deepen economic cooperation, reaffirming their commitment to increase bilateral trade to $5 billion while identifying investment, special economic zones, defence production and technology as key pillars of future collaboration.

The understanding emerged during talks between Prime Minister Shehbaz Sharif and Turkish President Recep Tayyip Erdogan, who later addressed a joint press conference outlining a broader agenda for strengthening strategic and commercial ties.

President Erdogan said both governments had instructed their respective trade ministries to continue work on a special economic zone in Karachi for Turkish businesses and were also negotiating an expansion of the Pakistan-Türkiye Preferential Trade Agreement to facilitate greater commercial activity.

He said Ankara would continue encouraging Turkish companies to expand their presence in Pakistan, adding that cooperation in defence industries remained one of the strongest components of bilateral economic relations and was advancing through jointly implemented projects.

Beyond defence, Erdogan said both countries intended to broaden cooperation in energy, transportation, critical minerals and information technology, describing these sectors as central to the next phase of economic engagement.

The Turkish president also praised Pakistan's diplomatic efforts in helping secure the Islamabad Memorandum of Understanding, saying the agreement had eased regional tensions despite what international media had described as a difficult negotiation process.

He congratulated Prime Minister Shehbaz Sharif and the people of Pakistan on the outcome and reaffirmed Türkiye's support for diplomatic initiatives aimed at reducing regional tensions. Erdogan added that Ankara remained concerned about developments that could undermine the agreement and said lasting peace required continued diplomatic engagement.

The Turkish leader also conveyed condolences over the loss of Pakistani lives in the recent bus accident in Balochistan.

Prime Minister Shehbaz said his visit had produced productive discussions with both President Erdogan and Turkish business leaders on expanding trade, investment and industrial cooperation.

He said both sides had agreed to intensify efforts to achieve the longstanding target of $5 billion in bilateral trade while exploring greater Turkish participation in Pakistan's special economic zones.

Describing Türkiye as one of Pakistan's closest partners, the prime minister said Islamabad admired the country's remarkable economic transformation under President Erdogan, particularly its progress in industrial development, and hoped to further strengthen economic cooperation for the mutual benefit of both nations.

Shehbaz reiterated Pakistan's support for Türkiye's position on the Cyprus issue and thanked Ankara for consistently backing Pakistan's stance on the Kashmir dispute, saying the two countries had maintained close coordination on regional and international matters.

He said Pakistan and Türkiye shared a relationship founded on centuries of common history, faith and cultural ties, recalling the support extended by Muslims of the subcontinent during Türkiye's War of Independence.

The prime minister said the bond had continued through decades of mutual assistance, noting Türkiye's support for Pakistan during wars, earthquakes and floods. He particularly recalled President Erdogan's visit to flood-affected Muzaffargarh, where he and First Lady Emine Erdogan met victims, with the first lady's donation of her necklace becoming a lasting symbol of solidarity.

He also acknowledged Türkiye's contribution to Pakistan's post-disaster recovery through the construction of hospitals and schools and its continued support for the country's social and economic development.

Calling Pakistan's success Türkiye's success, and Türkiye's progress Pakistan's progress, Shehbaz said the time had come to elevate the longstanding friendship into a stronger economic partnership. He thanked President Erdogan for hosting the Pakistani delegation and described Istanbul as a city that beautifully connected East and West while reflecting the warmth shared by the people of both countries.