Raza Khan

Pakistan has got concessions on 261 tariff lines under its Preferential Trade Agreement (PTA) with Turkiye, according to the Ministry of Commerce.

A report of the ministry, a copy of which is available with WealthPK, showed that Turkiye has offered zero rates in 123 tariff lines with immediate effect. These include five agricultural and 118 industrial tariff lines. Turkiye would also provide zero rates on 92 more tariff lines in next five to 10 years, the report said.

On the other hand, Pakistan has offered market to Turkiye in 130 tariff lines under the recently signed PTA. These tariff lines include 16 zero-rate with immediate effect, while 16 would be zero-rated in next five to 10 years, the report said.

Pakistan’s global export in 261 tariff lines, secured under the PTA with Turkiye, is $5.1 billion annually, while Turkiye’s import in the same tariff lines is $7.6 billion.

“Data shows that these tariff lines carry huge export potential for Pakistan in Turkish market,” the report said.

Currently, Pakistan’s exports to Turkiye are around $370 million, while imports are 500 million dollars approximately. Pakistan makes exports to Turkiye in 123 tariff lines, which are now zero-rated under PTA, and stand at only $27 million. According to an estimate, exports in these tariff lines to Turkiye are expected to go up to $300 million once the agreement is implemented. 

Pakistan secured tariff lines in leather apparel, footwear, glass, copper wire, cutlery, rubber tubes, plastics, sports goods, furniture, fans, ACs, batteries, make-up goods, soap and shampoo, rice, potatoes, spices, dates, mangoes, chocolate, and bread.

On the other hand, Pakistan has offered Turkiye zero rate in cocoa powder, Turkish black tea, wire condenses, flavors for food industry, animal feed, laboratory reagents, and copper wire.

The ministry of commerce said that Pakistan Turkiye PTA contains comprehensive provision of bilateral safeguard, balance of payments, exception, dispute settlement, and periodic review of agreement. “The agreement will help to achieve goal of bilateral trade of $5 billion,” the report said.

The PTA also provides an opportunity of further expansion in the agreement. Once coming into force, the agreement would also facilitate joint ventures between business communities of the two countries.

The Ministry of Commerce hoped that Pakistan Turkiye PTA will help in implementation of Islamabad-Tehran-Istanbul train, and will expedite signing of freight transport agreement.

Joint roadmap of Reciprocal Recognition Agreement between Halal Authorities of both the countries would provide opportunity to Pakistani meat exporters to grab new markets.

According to the State Bank of Pakistan (SBP), the volume of bilateral trade between Pakistan and Turkiye was recorded at $1.297 billion in fiscal year 2021-22. Pakistan’s exports to Turkiye registered $354 million in FY22 against $268 million in FY21. Imports from Turkiye were recorded at $943 million in FY22 against $866 million in FY21.

Credit : Independent News Pakistan-WealthPk