Islamabad: Pakistan’s proposal to offer 1,000 acres of land free of cost to Turkiye for establishing a dedicated Export Processing Zone (EPZ) in Karachi gained traction this week during high-level meetings in Istanbul and Ankara.
A Pakistani delegation comprising officials from the Foreign Office, the Special Investment Facilitation Council (SIFC), the Board of Investment (BoI), and the Sindh Export Processing Zone Authority held talks with Turkish government counterparts and business leaders to advance the initiative.
The proposal was initially floated by Prime Minister Shehbaz Sharif during his April 2025 meeting with President Recep Tayyip Erdogan. It aims to attract Turkish investment in manufacturing and exports while pushing bilateral trade towards a USD 5 billion target.
According to officials, Turkiye has been invited to visit the Karachi Industrial Park, where the land has been reserved. “They are expected to visit soon and will inform us of the dates shortly,” a senior Pakistani official said.
The delegation highlighted Karachi’s strategic location, developed infrastructure, and proximity to the Middle East and Central Asian markets. Officials argued that relocating manufacturing to Karachi could help Turkish companies reduce freight costs significantly.
Pakistani representatives also reviewed operational models of Turkish EPZs in Istanbul and Ankara, where such zones are known for offering long tax holidays, nominal land costs, and uninterrupted utilities. They suggested that Karachi’s proposed EPZ could be developed along similar lines.
Bilateral trade between Pakistan and Turkiye reached USD 1.4 billion in 2024, reflecting a 30 percent increase over the previous year. Both sides are now aiming to expand this figure to USD 5 billion through enhanced cooperation, while discussions on upgrading the Preferential Trade Agreement (PTA) to a Free Trade Agreement (FTA) are ongoing.
Officials on both sides expressed optimism that the proposed EPZ could serve to deepen industrial and strategic ties. A Turkish delegation is expected to visit Pakistan in the coming weeks to review the site and hold further discussions.
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