Pakistan’s Economic Diplomacy: Land Grant to Turkey for Trade Boost

In a move to strengthen economic ties, Pakistan is providing 1,000 acres of land to Turkey for an Export Processing Zone in Karachi. The Sharif government believes this will encourage Turkish companies to invest and will elevate trade to $5 billion. This initiative follows Turkey’s supportive stance during the India-Pakistan situation. Pakistani officials studied Turkish EPZs, now managed by private firms, to understand the benefits provided, such as tax exemptions, low-cost land, and access to essential services. The new EPZ is expected to slash transportation costs for Turkish companies, granting access to Central Asia and Gulf markets. Pakistan also aims to expand trade relations with Turkey and enter into free trade agreements with Gulf Cooperation Council countries. EPZs are special economic zones designed to foster exports by providing incentives for manufacturers, which can significantly benefit developing economies by creating jobs, attracting foreign investment, and generating foreign currency.