Pakistan has offered 1,000 acres of land to Turkiye to establish a dedicated Karachi Export Zone within the Karachi Industrial Park. The land will be provided free of cost to encourage Turkish investment and boost bilateral trade.
The initiative was first proposed by Prime Minister Shehbaz Sharif during his April 2025 meeting with Turkish President Recep Erdoğan. The aim is to create an investor-friendly environment and push Pakistan-Turkiye trade toward a $5 billion target.
A high-level Pakistani delegation, including officials from the Foreign Office, Special Investment Facilitation Council (SIFC), Board of Investment (BoI), and Sindh Export Processing Zone Authority, recently visited Istanbul and Ankara. They met Turkish government officials and business leaders to present the Karachi Export Zone as a strategic hub for regional manufacturing and trade.
Pakistani officials highlighted Karachi’s strategic location, robust infrastructure, and proximity to Middle Eastern and Central Asian markets. Reports indicate that relocating manufacturing units to the Karachi Export Zone could reduce Turkish freight costs from $4,000 to $1,000 per ton for regional exports.
The delegation also studied Turkish Export Processing Zones, which have transitioned from government-run to privately managed systems. Turkish zones offer 20-year tax holidays, low land charges, and uninterrupted utilities—models Pakistan hopes to implement in Karachi.
Bilateral trade between Pakistan and Turkiye reached $1.4 billion in 2024, a 30% increase over the previous year. Pakistan exported cotton and textiles worth $352 million, while Turkiye exported machinery and chemicals totaling $250.8 million. Both countries aim to reach $5 billion in trade, exploring expansion of the Preferential Trade Agreement (PTA) and potential Free Trade Agreement (FTA).
Officials believe the Karachi Export Zone could serve as a catalyst for industrial cooperation, attracting Turkish manufacturing units and strengthening economic ties between the two countries.
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