- Move to encourage investment in manufacturing, export sectors.
- Proposal first floated by PM Shehbaz in meeting with Erdogan.
- Turkish officials expected to visit soon, will inform of dates.
ISLAMABAD: Marking a significant move to enhance bilateral trade and investment, Pakistan has offered 1,000 acres of land free of charge to Turkey for establishing a dedicated Export Processing Zone (EPZ) within the Karachi Industrial Park, The News reported on Monday.
The proposal was initially put forward by Prime Minister Shehbaz Sharif during a bilateral meeting with Turkish President Recep Tayyip Erdoğan in April 2025.
The initiative aims to create a streamlined, investor-friendly environment, encourage Turkish investment in Pakistan’s manufacturing and export sectors, and help push bilateral trade towards an ambitious $5 billion target.
As a follow-up to that engagement, a high-level Pakistani delegation comprising officials from the Foreign Office, the Special Investment Facilitation Council (SIFC), Board of Investment (BoI), and Sindh Export Processing Zone Authority recently concluded a two-day visit to Istanbul and Ankara.
The delegation held meetings with Turkish government counterparts and business leaders to make the case for establishing the EPZ in Karachi.
“Pakistan invited Turkish authorities to visit the Karachi Industrial Park, where the 1,000 acres have been exclusively reserved for Turkiye. They are expected to visit soon and will inform us of the dates shortly,” a senior official from the Pakistani side told the publication.
During the meetings, the Pakistani team showcased Karachi’s strategic location, developed infrastructure, and proximity to the Middle East and Central Asian markets. “Our message was clear — Karachi Industrial Park offers immense potential. Turkish companies relocating here could cut freight costs from $4,000 to just $1,000 per ton for exports to the region,” the official added.
The delegation also visited Turkish EPZs in Istanbul and Ankara to understand their operational models. Turkiye has over six decades of experience with EPZs, with the first established in the 1960s. Initially government-run, the zones have been developed and managed by the private sector since 1995, with the government serving a regulatory role.
Turkish EPZs are known for offering highly attractive incentives: 20-year tax holidays, nominal land charges, and uninterrupted utilities like electricity, water, and gas. Pakistani officials said this model could guide the proposed Karachi EPZ’s development.
Bilateral trade between the two countries has been on an upward trajectory, reaching a record $1.4 billion in 2024, a nearly 30% increase from the previous year.
However, both countries are now targeting a $5 billion trade volume through expanded cooperation.
In 2023, Pakistan exported $352 million worth of goods to Turkiye — led by cotton and cotton fabrics (43.5% of total exports), followed by yarn, garments, unwrought metals, and oilseeds.
Turkiye’s exports to Pakistan stood at $250.8 million, dominated by electrical machinery, textile equipment, plastics, chemicals, and fabric.
The proposed Karachi EPZ is being viewed as a potential game-changer. Pakistani officials believe it could unlock a new phase of industrial cooperation, with Turkiye relocating select manufacturing units to Karachi to take advantage of cost reductions and market access.
Efforts are also underway to expand the existing Preferential Trade Agreement (PTA), with both sides exploring a full-fledged Free Trade Agreement (FTA) in the future.
As the Turkish delegation prepares to visit Pakistan in the coming weeks, expectations are high that the EPZ initiative will catalyse not only trade but also long-term strategic and industrial ties between the two brotherly nations.
Meanwhile, in a significant step towards strengthening economic cooperation, a high-level 15-member business delegation from the Kingdom of Saudi Arabia (KSA) is scheduled to arrive in Pakistan on October 5, signalling a renewed push for private-sector investment and business-to-business (B2B) partnerships across critical sectors of the economy.
Led by a senior cabinet minister, who is also a member of the Saudi royal family, the delegation comes with full backing from the Saudi government, making it one of the most influential Gulf business missions to visit Pakistan in recent years, a senior commerce ministry official told the scribe.
The delegation is expected to hold high-level meetings with Prime Minister Shehbaz Sharif, key cabinet ministers, and senior officials of the Special Investment Facilitation Council (SIFC) — a civil-military platform designed to fast-track foreign investment in Pakistan’s priority sectors.
SIFC’s initiatives have contributed to a 22% increase in Pakistan’s exports to Saudi Arabia, elevating the total trade volume from $546 million to $700 million.
Officials confirmed that the delegation will explore investment opportunities in mining, energy, IT, agriculture, financial services, construction and for JVs in making semiconductors and the food industry, with the flexibility to strike business deals directly with Pakistani counterparts.
“This visit reflects a shift toward deepening economic cooperation at the private sector level, with the full institutional support of both states,” said a senior official involved in coordinating the visit.
Beyond Islamabad, the delegation will travel to Lahore, where it will meet members of the Lahore Chamber of Commerce and Industry (LCCI) and prominent business leaders from Punjab to discuss joint ventures and sector-specific investment opportunities.
The delegation will then visit Karachi, Pakistan’s financial hub, where it is scheduled to hold extensive meetings with members of the Karachi Chamber of Commerce and Industry (KCCI) and some of the country’s top business tycoons. Discussions will focus on trade, logistics, energy infrastructure, and industrial cooperation.
The delegation will depart for Riyadh from Karachi at the conclusion of the visit.
Though the visit comes shortly after the signing of a Pakistan–Saudi Strategic Mutual Defence Agreement on September 17, officials clarified that the focus of this delegation is purely economic and builds upon previous private-sector engagements.
In October 2024, a 135-member Saudi delegation, led by Investment Minister Khalid Al-Falih, visited Pakistan for B2B meetings in sectors including energy, IT, agriculture, health, textiles, and construction.
The two countries have also increased joint participation in international trade fairs and exhibitions. Earlier this year, 55 Pakistani companies participated in the Saudi Food Fair, and further bilateral trade promotion is scheduled through exhibitions such as the Lifestyle Expo in Riyadh, the Single Country Exhibition in Jeddah, and Saudi Build in the construction sector. In Pakistan, Saudi investors are expected to attend major expos such as TEXPO and FOOD-AG.
Despite historical diplomatic warmth, Pakistan continues to face a significant trade imbalance with the Kingdom. In 2022–23, Pakistan exported goods worth $563 million to KSA, while importing goods valued at $4.19 billion, resulting in a trade deficit of $3.63 billion.
In the first seven months of the 2023–24 fiscal year (July–January), exports to Saudi Arabia amounted to $394 million, a 27% increase compared to $311 million during the same period in the previous year.
However, under the latest scenario, SIFC’s initiatives have contributed to a 22% increase in Pakistan’s exports to Saudi Arabia, elevating the total trade volume from $546 million to $700 million.
Major Pakistani exports to Saudi Arabia include rice, meat, fruits, vegetables, and spices, while imports are dominated by petroleum products and industrial polymers.
Pakistan is now keen to improve market access for its goods in Saudi Arabia and other Gulf countries through the Gulf Cooperation Council (GCC) platform.
A preliminary Free Trade Agreement (FTA) draft between Pakistan and the GCC was signed on September 28, 2023, in Riyadh. Islamabad hopes that progress on this front will open new channels for trade and investment.
With a GDP of $1.1 trillion (2022), Saudi Arabia remains the largest economy in the Gulf region and a central player in Pakistan’s long-term trade and investment strategy. Officials say that Pakistan’s private sector must actively engage with Saudi investors and capitalise on the country’s Vision 2030 agenda, which emphasises economic diversification and foreign investment.
“This visit is a golden opportunity for Pakistani businesses to position themselves as reliable partners in the Kingdom’s expanding non-oil economy,” said a senior commerce ministry official.
