Pakistan has taken a bold step to deepen its economic partnership with Turkiye by offering 1,000 acres of land, free of cost, for the establishment of a dedicated Export Processing Zone (EPZ) at the Karachi Industrial Park.
The initiative, first proposed by Prime Minister Shehbaz Sharif during his April 2025 meeting with Turkish President Recep Tayyip Erdoğan, is part of an ambitious plan to push bilateral trade to $5 billion.
Delegation’s Visit and Key Discussions
A high-level Pakistani delegation, including officials from the Foreign Office, Special Investment Facilitation Council (SIFC), Board of Investment (BoI), and the Sindh Export Processing Zone Authority, recently completed a two-day visit to Istanbul and Ankara.
The team pitched the Karachi EPZ to Turkish leaders and business communities, highlighting it as a game-changer for manufacturers looking for regional market access and cost-effective operations.
Pakistani officials kept on highlighting the strategic location of Karachi, developed infrastructure, and its gateway position to Middle Eastern and Central Asian markets. They pointed out that Turkish companies relocating to Karachi could slash freight costs dramatically—dropping from around $4,000 to just $1,000 per ton of exports.
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Learning from Turkiye’s Experience
During the visit, the delegation also visited Turkish EPZs in Istanbul and Ankara to study their operational models. Turkiye has decades of experience in running successful zones, having shifted from government-run setups to private management since 1995.
Their EPZs offer 20-year tax holidays minimal land charges, and reliable utilities—a framework Pakistani officials are keen to use this kind in Karachi.
Boosting Bilateral Trade
Trade between Pakistan and Turkiye has already gained momentum, hitting a record $1.4 billion in 2024, up 30 percent from the previous year. Pakistan’s exports are led by cotton and textiles, reaching $352 million, while Turkiye exported $250.8 million worth of machinery and chemicals.
Both sides are now exploring an expanded Preferential Trade Agreement (PTA) and even a full Free Trade Agreement (FTA) to unlock new opportunities.
Officials in Islamabad believe that once Turkish companies start relocating production to Karachi, the EPZ could serve as a catalyst for industrial cooperation, accompanying a new phase of economic ties between the two countries.