Pakistan, Turkiye to set up special economic zone, target $5 billion trade

Pakistan, Turkiye to set up special economic zone, target $5 billion trade

By Staff Reporter

ISLAMABAD: Pakistan and Turkiye are planning to establish a Special Economic Zone in Karachi for Turkish entrepreneurs and aim to boost bilateral trade to $5 billion, as part of a broader push to deepen cooperation in energy, defense, and strategic infrastructure amid growing regional instability, officials said.

The announcement followed a high-level visit by Turkish Foreign Minister Hakan Fidan and Defense Minister Yaşar Güler to Islamabad, where they met with Pakistani political and military leaders. Described by Pakistan’s foreign office as a sign of “deepening strategic ties,” the visit underscored both nations’ focus on regional stability, trade expansion, and defense modernization.

At a joint news conference with Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar, Fidan outlined the scope of the partnership. “Economy, energy, defense industry, education and culture are areas where we are extending our cooperation each day,” he said. “We are aiming to increase our commercial relations to $5 billion. In the field of energy, we are intensifying joint activities in mining and also in precious stones, as well as natural gas and the oil sector.”

Fidan pointed to a recent agreement signed in April between the Turkish Petroleum Corporation (TPAO) and a Pakistani state-owned firm to explore offshore oil and gas, calling it a “preliminary step toward broader structural cooperation” in the energy sector.

Dar, addressing the press alongside Fidan, highlighted new initiatives to attract Turkish investment. “We are pursuing establishment of a Special Economic Zone dedicated for Turkish entrepreneurs in Karachi,” he said. Dar also revealed plans to revive the Istanbul-Tehran-Islamabad freight train, a long-dormant trade route linking South Asia with Europe. “Our delegations are meeting in the coming weeks to finalize the roadmap for its revival.

Dar said Turkish companies would play a role in major infrastructure and energy projects. “Turkish companies will also be participating in offshore drilling projects and the privatization of electricity distribution companies in Pakistan’s power sector,” he noted. Additional initiatives include the Jinnah Medical Complex and Danish University, signaling a wide-ranging economic collaboration.

The two countries also agreed to revive the Joint Ministerial Commission after an 11-year hiatus, with Pakistan’s commerce minister and Turkiye’s defence minister set to co-chair a session in the coming weeks. “All this work will lay a solid foundation for the 8th High-Level Strategic Cooperation Council, which will be held next year in Turkiye and co-chaired by the Honourable President of Turkiye [Recep Tayyip Erdoğan] and the Prime Minister of Pakistan [Shehbaz Sharif],” Dar said.

Defense emerged as a cornerstone of the talks, with Fidan describing joint initiatives as “a strategic step for the security of both countries.” He noted that multiple projects in defense manufacturing and technology were already in progress, building on the nations’ shared commitment to counterterrorism and capacity building.

In a separate meeting, Güler sat down with Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu at Air Headquarters in Islamabad to assess bilateral defence ties and regional threats. According to Pakistan’s military media wing, Inter-Services Public Relations (ISPR), the two sides agreed to establish joint working groups to advance collaboration in aerospace technologies, advanced training, and new domains of warfare.

Güler commended the Pakistan Air Force’s operational readiness, particularly during its recent conflict with India, and pushed for deeper industry-to-industry partnerships. “We see great potential in joint ventures in disruptive technologies, including unmanned aerial systems, advanced avionics and pilot exchange programs,” he said, according to the ISPR. Both parties committed to enhancing joint air exercises and finalizing plans for more intensive training cooperation.

The ISPR statement said the meeting reflected the “shared commitment of both the brotherly nations to enhance strategic cooperation, solidify defense ties and promote lasting institutional linkages between the Armed Forces of Pakistan and Turkiye.”

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