KARACHI, Feb 16: Apart from traditional bilateral trade ties, Turkey and Pakistan also share a common outlook for regional economic cooperation.

In the past, the two countries have been members of CENTO and the RCD. Currently, they share the objectives set by ECO, that works to forge co-operation with the Central Asian Republics.

Now, the visiting Turkish minister for state Prof. Dr. Sukru S. Gurel says he sees the Middle East and Central Asia as inseparable part of larger region of Euro-Asia, as the changing international scenario is beginning to look more conducive for regional trade.

Globalization is offering opportunities that can be seized by synergies, joint ventures and alliances and production on world economies of scale that no one single national market can sustain.

In collaboration with a firm from Finland, a Turkish company is interested in acquiring Pakistan Telecommunication Company Ltd. and waiting for a second tender to participate in the bid. The privatization of PTCL was put on hold following September 11 catastrophe.

Many a multinationals are closing down plants in different countries to focus on production at one location to serve regional markets and to update technologies to make products cost competitive.

Even in Pakistan, multinationals are strengthening their business by expanding plant capacities to global levels.

Off-hand, businessmen point out 3-4 areas where synergies can be created to realize the economic potential in the region. These are oil pipelines, transportation and reconstruction of Afghanistan.

According to a publication of the Foreign Economic Relations Board, Turkey, as of November 2001, 356 firms were able to obtain contracts for services for 1,287 projects worth $25 billion from Russian federation and former republics of the Soviet Union, including Central Asia.

Six Turkish firms have secured contracts worth $1,727 million for 19 Pakistani projects so far. A Turkish business group, DIZYN, is interested in setting up a manufacturing facility in Pakistan to provide locally produced equipment and services for water conservancy and irrigation projects, says the company’s representative Mirmahmutogullari. It has set up plants outside Turkey, including Germany.

A Turkish textile manufacturer of Izmir has a joint venture here for exports to US and Mexico. According to some reports, 50 per cent of the Turkey’s exports and 60 per cent of the Pakistan’s foreign sales of merchandize come from textiles.

With a GNP of $200 billion and exports of some $30 billion per annum, (85 per cent foreign sales is of manufactures), Turkey markets 2,000 products in 190 countries, says Dr. Gurel. He is leading the largest-ever delegation of Turkish businessmen to Pakistan. Turkey’s imports in 2000 totalled $55 billion. It’s GNP per capita is $3,339.

An important element in bilateral trade is the close proximity of Turkey to Pakistan — a fact that is often forgotten. The main problem facing bilateral trade is lack of any agreement for facilitating road transportation of goods between Pakistan, Iran and Turkey.

Turkey is not far off from Pakistan and trucks are available at cheaper rates for transportation of goods, say Turk businessmen.

Trucking involves less packaging cost, than sending merchandize by ships. Since the ships pass through the Suez Canal, it takes much longer time for goods to reach their destination and the freight cost is very high. Without the the road transport highway, the bilateral trade would remain handicapped.

Turkey is also looking for co-operation in the banking and financial field. Turkish banks have been restructured and they have become strong. They could play a role. Bank and performance guarantees are seen as a problem in the expansion of trade ties.

If the banking and transport problems are resolved, the current $150 million trade between the two countries could be enlarged, say Turkish businessmen.