KARACHI, Oct 8: Commerce Minister Humayun Akhtar Khan on Wednesday said that Pakistan and Turkey were initiating move to enter into Preferential Trade Agreement (PTA) for which tariff reduction lists were being exchanged by both the countries.

Talking to newsmen after the opening ceremony of “Turkish Days in Pakistan” — a four-day (October 8-11) exhibition of Turkish machinery and consumers goods — the minister says there lies great scope for enhancing trade relation between the two countries.

He said that Pakistan-Turkey investment company would be jointly set up in the public and private sector to finance joint venture projects in textile and food processing industries.

The preferential trade relation, he said, would help both the sides enter into joint venture. It will also help Turkey in exploring markets of Central Asian States and for Pakistan to focus on European market.

However, the minister said that this arrangement was being carried under a tripartite arrangement between the three industrialized member countries of the Economic Cooperation Organization — Pakistan, Iran and Turkey — that are keen to move at a faster pace on the economic front.

Mr Humayun said that tripartite relation would greatly benefit all the three countries to pool their potential for greater economic growth and development. He said so far the good brotherly relation between the two countries did not truly translate into economic relation as trade activity between both the countries was very dismal.

The minister said that already there was an understanding between the three-member countries of the ECO to reduce tariffs up to 15 per cent in eight years time. However, he said that senior officials’ committee of these countries had suggested that tariffs should be lowered to 10 per cent in five years.

Mr Humayun said that he would be attending the OIC meeting on October 20 in Istanbul and would exchange the draft of tariff reduction with Turkish officials.

He said that he was encouraged by Turkish businessmen who were opening up and reaching out to improve trade relation between the two countries.

Speaking on the occasion, Turkish Minister of State Kursad Tuzmen said despite the fact that both Pakistan and Turkey enjoyed good brotherly relations it was not fully reflected on the economic and trade front.

He said there was urgent need to remove bottlenecks on both the sides to boost trade relation and give more important to bilateral and regional trade. He said Turkey was keen to enhance trade relation with Pakistan and added that this was his third visit to Pakistan in a short period of four months.

Mr Tuzmen said that around 53 Turkish companies were displaying their goods related to textiles, construction, auto spare parts, electric and electronic, food items and textile machinery.

He said there was a big scope of expanding trade relation and economies of both the countries could complement each other for the faster growth and development.