June 17, 2003	Tuesday	Rabi-us-Sani 16, 1424

ISLAMABAD, June 16: Pakistan and Turkey agreed on Monday to set up an investment bank and an investment company, in which Iran and some other members of the Economic Cooperation Organization (ECO) would also participate, to take up projects in the Central Asian region.

Finance Minister Shaukat Aziz and his Turkish counterpart Ali Baba Chan told newsmen at a joint press conference that the two countries would also work together to secure contracts of reconstruction in Iraq and Afghanistan.

Shaukat Aziz said Turkey was a gateway for Pakistan to Europe and hence it would develop physical access to Europe for three-day trucking travel from Pakistan through Turkey. He said the sea route currently took eight days to reach Europe from Pakistan. Turkey has custom union (zero custom rate) with EU and can become centre for Pakistan’s exports to Europe, he added.

Mr. Aziz said Pakistan had also offered Turkish companies to bid for Pakistan’s big projects worth $2.5 billion Public Sector Development Plan (PSDP) for fiscal year 2003-04.

He said the nature of the Pak-Turk Investment Company would be a joint venture similar to Saudi-Pak, Pak-Oman and Pak-Kuwait investment companies. These all companies are profitable and flourishing well by enhancing their investment. These would build a bridge between the two countries, he said.

He said microfinance was another area where we were working at present and could benefit from the experience of each other.

Turkish minister for economy Ali Baba Chan said he extended the invitation to Shaukat Aziz to visit Turkey to cement the economic ties of both the nations.

“The composition of Turkish parliament entails a large number of businessmen, which indicates the nature of the government’s relationships and priorities. The Turk nation wants to bring the private sector dynamism in its government and wants to eliminate the red tapism”, Mr. Chan said.

He said private sector cooperation with the public sector was very essential because it did not have any limitations and no restrictive practices. He said Turkey had an active export programme, it had $250 million trade volume with Pakistan and Turkish Ex-Im Bank was likely to review its rating for Pakistan.

The volume of bilateral trade between the two countries was very low, he said and added that there would be more Turkish companies coming to Pakistan in future to enhance its presence here and expand the trade and economic ties.

He said the interest of the Turkish government to enhance bilateral trade should be seen from the fact that Turkish Premier was leading a 107-member businessmen delegation. Business to business relations of the private sectors of the both countries would grow in future, he said. The head of a union of Turkish chamber and commodity market called TOPB representing its whole real sector is also accompanying the delegation.

On the question of Bayinder, a Turkish construction company, which is in serious dispute with the National Highway Authority (NHA), the Turkish minister said the communication ministers of both countries were holding meetings separately to find an out of court settlement.