
Pakistan, Turkey set sights on $5b trade
ISLAMABAD:
Pakistan and Turkey on Thursday agreed to deepen their bilateral ties, setting a $5 billion target for bilateral trade as President Recep Tayyip Erdogan and Prime Minister Shehbaz Sharif denounced President Trump's Gaza takeover plan.
Erdogan, leading a high-powered delegation on the last leg of his three-nation tour, held a series of meetings in Islamabad. The two sides held formal talks at the Prime Minister House and Erdogan and Shehbaz co-chaired the High-level Strategic Cooperation Council.
They also attended a Pakistan-Turkey Business form. The Turkish President separately also met his Pakistani counterpart Asif Ali Zardari.
During talks, the two sides reviewed bilateral ties particularly trade relationship, defense cooperation and discussed key regional and international issues.
"With Mr Prime Minister, we agree to increase our efforts to reach the target of $5 billion in trade volume," the Turkish President said during a joint news conference with Prime Minister Shehbaz.
Erdogan underscored the importance of private-sector collaboration, encouraging Turkish investors to expand their activities in Pakistan.
"(Through Türkiye-Pakistan Business Forum) We encourage our investors, who are the driving engine of economic cooperation, to engage in more activities in Pakistan," he said.
As part of the high-level talks, 24 agreements were signed to strengthen cooperation in various sectors.
Erdogan expressed gratitude for Pakistan's strong support in Türkiye's fight against terrorism.
"We reiterate our support for Pakistan in its fight against terror in all its kinds and forms. We feel Pakistan's strong support in our fight against all forms of terrorism, including PKK, YPG, DAESH, and FETO."
Erdogan described Türkiye and Pakistan as two great countries tied by unshakable bonds, emphasising the deep-rooted relationship between the two nations.
The Turkish president also acknowledged Pakistan's continued support for the rights of Turkish Cypriots, calling it highly meaningful.
Erdogan also reiterated Türkiye's firm stance on Palestine, saying that they will continue to fight with patience for the establishment of an independent and sovereign Palestinian state based on the 1967 borders, with East Jerusalem as its capital.
"We believe that we need to strengthen our resolute stance in a period when there are unlawful and unethical proposals to uproot our Gazan brothers and sisters from their homeland," he added.
"Gaza belongs to our Gazan brothers and sisters and will remain so forever," he said in a televised speech at a business forum in the capital, Islamabad. Erdogan arrived on a two-day visit on Wednesday night.
"The homeland for which the Palestinians have sacrificed tens of thousands of their children is not up for bargaining," he added.
Prime Minister Shehbaz Sharif praised Türkiye's economic progress and its leadership in advocating for Muslim nations.
He said Türkiye is currently one of the fastest-growing economies in the world and that the country has always stood up for the rights of Muslim nations, especially the oppressed. He added that the Muslim world listens to Türkiye closely and attentively.
Sharif further emphasised the unique bond between the two nations, calling it an unparalleled relationship based on shared history and values.
Meanwhile, a joint statement issued after the talks described the relationship between Pakistan and Turkey as 'Two Souls, One Heart' as the foundation of bilateral relations between the two countries.
The HLSCC is the main political forum that guides bilateral relations in all fields.
According to the joint statement, the Joint Working Groups of the HLSCC will be named as "Joint Standing Committees" (JSC) henceforth to better reflect their permanent nature.
Three new JSCs, namely "Security, Defence, and Intelligence JSC", "Health JSC" and "Science and Technology JSC", have been established under the HLSCC mechanism.
The two sides underscore the need for resolution of all outstanding disputes between Pakistan and India, including the core dispute of Jammu and Kashmir, in accordance with the relevant UN Security Council resolutions and wishes of the Kashmiris. In this regard, Pakistan expresses its deep appreciation for Türkiye's principled stance on the issue.
The two countries reiterate full and resolute support for the efforts towards the just, lasting, and sustainable settlement of the Cyprus issue. Pakistan reaffirms its support to the Turkish Cypriots and to Türkiye in this regard. Türkiye expresses its deep appreciation for Pakistan's principled stance on the issue.
Both countries reiterate their support for a peaceful and stable Afghanistan and for advancement of international efforts aimed at building a more sustainable future for the Afghan people through continued, coordinated and coherent engagement with the interim Afghan authorities including on countering terrorism.
In this regard, they underlined the importance of inclusive governance, and respect for fundamental rights, particularly of girls and women in Afghanistan. The two sides also stressed the need for sustaining humanitarian assistance to the Afghan people.
They further underscored that Afghanistan should not become a safe haven for terrorist groups. All necessary measures to counter terrorism need to be taken by interim Afghan authorities including against TTP and DAESH, which remain listed under the 1267 UNSC sanctions regime.
Both sides underscore the need for strengthening multilateralism, including through universal and consistent adherence to the fundamental principles of the UN Charter to address the existing and emerging international challenges, in an effective and credible manner.
The two sides emphasized that the United Nations Security Council needs to be made more representative, democratic, transparent, and accountable through a comprehensive United Nations Security Council reform process, based on widest possible consensus. In addition, they underlined the need for the implementation of relevant UN Security Council resolutions to resolve the long-standing disputes on the agenda of the Security Council, especially those pertaining to the Muslim Ummah.
The two sides expressed their grave concern at the unprecedented loss of lives and property as well as displacement of hundreds of thousands of Palestinians as a result of indiscriminate use of force by Israel. Welcoming the Gaza ceasefire, they expressed hope that the truce would lead to a permanent and durable ceasefire.
They urged the need for scaling up of humanitarian assistance, including through continued and unobstructed operation of UNRWA, return of all displaced Palestinians to their homes, as well as concerted international efforts for the early reconstruction of Gaza. They underscored that any attempts to displace the Palestinians from their land as well as to continue illegal settlements constitute blatant violation of international law.
Both sides urged the need to find a just and comprehensive solution for the establishment of a sovereign, independent, and contiguous Palestinian state based on pre-1967 borders, with Al-Quds Al-Sharif as its capital.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Express Tribune
2 hours ago
- Express Tribune
Anti-digital, pro-realty sector budget
Finance Minister Muhammad Aurangzeb on Tuesday unveiled a Rs17.6 trillion budget, which attempted to limit fiscal expansion but taxation measures were clearly self-contradictory that on one hand would promote cash economy and fossil fuels but discourage these too on the other. The government of Prime Minister Shehbaz Sharif also introduced new taxes on the digital economy, pensioners and clean energy. Some of these measures were contradictory to the stated policy to discourage the cash economy. However, the Finance Bill 2025-26, also gave incentives for clean energy by taxing the internal combustion engine cars and fossil fuels. Despite high poverty and high unemployment, the government proposed to drastically reduce import duties from raw materials to finished goods, which the industry feared would lead to de-industrialisation of Pakistan. The economy has been opened for the foreign competition by lowering protection available to local industries. The finance minister said that the maximum custom duty slab has been reduced to 15% while a five-year plan had been given to abolish additional and regulatory duties. The inaudible budget speech, which Aurangzeb, delivered in the midst of rowdy opposition, clearly lacked in giving any policy direction. While the Finance Division tried to meet the International Monetary Fund's (IMF) requirement to meet fiscal targets, the Federal Board of Revenue (FBR) was not able to come up with the clear taxation policy. The Finance Bill 2025-26 appeared to be the most confusing document that any government produced in years. It revolved around going after the economy of the youth and the 21st century business practices. The government has proposed 18% sales tax on import of solar panels but it imposed Rs2.5 per litre carbon levy on use of petrol, diesel and furnace oil, showing the lack of clarity on the part of the government. Likewise, it increased the tax on cash withdrawals from banks from 0.6% to 0.8% to discourage cash economy and generate more easy money but it also imposed a new tax on digital services platforms in the range of 0.25% to 5%. The government also increased sales tax on 850 cc cars of the middle class from 12.5% to 18%. A new tax has been introduced on pensioners where the monthly pension of Rs833,000 has been taxed at the rate of 5%. The FBR was once again lacking in determining the policy, whether the government wanted to promote digital economy or cash economy. FBR Chairman Rashid Langrial cancelled the media briefing on the Finance Bill 2025-26, which was tantamount to compromising transparency and the right of the people to know about the measures that impact their futures. In his budget speech, the finance minister surprisingly stated that the "rapid growth in the online business and digital market places was creating problems for traditional businesses, therefore, it is proposed that e-commerce platforms, couriers and logistic services should be taxed at the rate of 18%. A tax official told The Express Tribune that the FBR would earn Rs64 billion by taxing the digital economy. The Finance Bill 2025-26 showed that the economic managers preferred the 19th century economy by providing some relief on purchase of properties but taxed the digital platforms of the 21st century. It has also proposed to ban economic transactions of ineligible persons, which include ban on purchase of properties, cars and investment in securities by persons whose assets do not match these purchases. Through the Finance Bill, the government also amended a host of other non-tax laws besides introducing two new legislations, the Digital Presence Proceeds Act 2025 and the New Energy Vehicles Adoption Levy Act, 2025. There might be constitutional questions, whether the new laws can be introduced through the Finance Bill. The government has proposed a total of over Rs415 billion worth of tax measures in the budget, said the senior tax official. These include Rs292 billion worth of FBR-related measures, Rs111 billion additional earnings by imposing Rs2.5 per litre carbon levy on petrol, diesel and furnace oil and Rs9 billion worth levy on conventional cars. Finance Minister Aurangzeb said that the IMF had also accepted the Rs389 billion worth enforcement measures. But he admitted that the FBR's tax-to-GDP ratio would remain below the IMF target of 10.6% in this fiscal year. The government has proposed these measures to extract a minimum Rs2.2 trillion from the sluggish economy in a bid to achieve next fiscal year's Rs14.13 trillion tax target. The petroleum and carbon levy target has been set at Rs1.47 trillion for the next fiscal year on the back of Rs80 per litre levy. The finance minister also announced some respite for the lower to middle income group salaried persons. He said that on the annual income of Rs1.2 million, the tax rate will be 2.5%, down from 5%. In the cabinet meeting earlier, there was an exchange of words between the finance minister and the Communication Minister Abdul Alaeem Khan, who had asked the prime minister to further increase the salaries for the government employees. On that the finance minister stated that this would require additional resources, prompting Khan to say that he was not a street vendor, who did not know that this required additional money, said a member of the cabinet on condition of anonymity. The prime minister decided that in order to give a 10% increase in the salaries, the tax rate for the lower middle income group should be increased from the proposed 1% to 2.5%, said the sources. On annual income of up to Rs2.2 million, the government has proposed to reduce the rate from 15% to 11%, on annual income of Rs3.2 million, the rate is reduced from 25% to 23%. There is no relief for the annual salaried income earners of over Rs4.1 million. However, the fine on highest income earners has been reduced from 10% to just 9%, which the finance minister called was necessary to stop "brain drain". Advance tax on sale or transfer of immovable property has been increased from 3% to 4.5% on the value of Rs50 million property. The rate is jacked up to 5% from 3% on Rs100 million property while it is further increased to 5.5% from 4%, if the value exceeds Rs100 million. However, on the purchase of the property the rate is reduced from 3% to 1.5%, from 3.5% to 2% and from 4% to 2.5%, depending upon the value of the property. The economic transactions by the ineligible persons have been banned, if the value of the new purchases is more than 130% of the value of the total assets. Tight fiscal path In order to stay in the IMF programme, the government has proposed a fiscally tight budget, although it created room for political spending too. The government has proposed a budget deficit of Rs6.5 trillion or 5% of the size of the economy. The total size of the budget is Rs17.6 trillion, which is 7.3% less than this year's original budget due to relatively lower allocations for the interest payments in fiscal year 2025-26. The proposed budget deficit is 1.8% of the GDP or Rs2.4 trillion less than the original estimates of this fiscal year. The deficit may still be appearing large in absolute terms. But it is, for the first time, lower than this year's gap, both in terms of size of the economy and in absolute numbers. The defence budget has been proposed at Rs2.55 trillion, which is 21% or Rs436 billion higher than this fiscal year due to war with India. The armed forces development programme has been marginally increased to Rs300 billion, which is far lower than what the military had demanded. The government is projecting gross federal revenues at record Rs19.3 trillion for next fiscal year, higher by Rs1.5 trillion. The gross revenues are based on the FBR's tax target of Rs14.13 trillion and Rs5.2 trillion non-tax revenues. The non-tax income will mainly come from the Petroleum Levy where the government wants to collect nearly Rs1.5 trillion and the Rs2.4 trillion profit by the State Bank of Pakistan. Out of the Rs14.1 trillion FBR tax collections, the provinces will get Rs8.2 trillion as their shares in the federal taxes under the National Finance Commission (NFC) Award. This leaves the federal government with Rs11 trillion net revenues for next fiscal year, which will not be sufficient to meet the interest payments and inclusive of all defence spending. The government will borrow Rs6.5 trillion in the next fiscal year to finance the Rs17.6 trillion total federal budget. Under the IMF programme, the four provinces are also required to save Rs1.46 trillion from their revenues as cash surplus to bring down the national budget deficit to Rs5 trillion or 3.9% of GDP. This is steeper fiscal consolidation and would require all the five governments to meet all their revenue and expenditures related targets. The interest payments will eat 47% of the budget and the federal government's net income —after paying the provincial shares — will be Rs2.8 trillion more than interest payments. The next year's interest payments are estimated at Rs8.2 trillion, which is lower than this fiscal year due to substantial reduction in the interest rates. The finance minister announced a Rs716 billion BISP programme aimed at expanding the net to over 10 million beneficiaries and adding more children in the conditional cash transfer programmes.


Express Tribune
3 hours ago
- Express Tribune
President pushes to unlock Russia trade
President Asif Ali Zardari on Tuesday said Pakistan and Russia have enormous potential needed to be exploited to expand bilateral partnership in trade, investment, technology, and people-to-people exchanges. The president made these remarks as chief guest at the special ceremony celebrating the 35th National Day of the Russian Federation held in the federal capital. Khyber-Pakhtunkhwa Governor Faisal Karim Kundi, Special Assistant to the Prime Minister (SAPM) Tariq Fatemi and members of the diplomatic corps attended the event. The president stated that Pakistan regards Russia as an important global power that has been a key player in ensuring regional peace and stability, particularly in the Eurasian region. President Zardari extended his sincere congratulations to President of the Russian Federation Vladimir Putin, Ambassador of the Russian Federation Albert Khorev as well as to the people of Russia. "On this significant occasion, Pakistan joins Russia in celebrating this National Day, reflecting our solidarity and friendship. I am glad to state that our bilateral relations have improved over the years, based on mutual respect, cooperation, and shared interests in various fields," the president said. He said there have been extensive high-level interactions between the two countries that had laid the foundation for deeper engagement and understanding. Pakistan and Russia also continue to cooperate closely on regional and international platforms, he added. The president underlined that SAPM Tariq Fatemi had a promising meeting with Russian Foreign Minister in Moscow early this month where both sides had underscored the importance of peace and stability in the region. "I am confident that the bonds of friendship between Pakistan and Russia will continue to strengthen. As we celebrate this important occasion tonight, let us reaffirm our commitment to building bridges of understanding and cooperation between our two nations. Let us take hold of the opportunities that lie ahead and work together for a brighter and more prosperous future. Long Live Pakistan-Russia friendship," President Zardari said. Earlier, in his welcome address, Ambassador Khorev emphasized that Russia remains a sovereign, powerful, and resilient nation, driven by the unwavering support of its people. Reflecting on the words of President Putin, the Ambassador noted that Russia has historically played a unifying role in the region, stretching "from the Baltics to the Caucasus." Highlighting the steady progress in Pak-Russia relations, Ambassador Khorev stated that bilateral cooperation is advancing at a satisfactory pace across various sectors. He expressed appreciation for Pakistan's growing interest in Russian language and culture. "We commend the Pakistani enthusiasm for learning the Russian language," he remarked. "The Russian Mission is actively supporting the establishment and expansion of language learning institutions across the country." The ambassador also reaffirmed Russia's continued support for Pakistan on various international platforms, noting that both nations are working together to deepen ties in education, diplomacy, and mutual development. The event concluded with Russian musician's performance on folk music.


Business Recorder
3 hours ago
- Business Recorder
Maryam, US diplomats discuss enhanced cooperation
LAHORE: Chief Minister Punjab Maryam Nawaz Sharif met US Chargé d'Affaires Natalie A Baker and Consul General Kristin K Hawkins and discussed matters pertaining to further strengthening the long-standing Pak-US relations and enhancing cooperation in areas of mutual interest. The CM appreciated Natalie Baker's dynamic and positive role as Chargé d'Affaires in Pakistan. She also appreciated the constructive and positive role of the United States in the recent Pakistan-India strained relations. The chief minister expressed solidarity with the people of California on being a sister state. She described her meeting with the US Congressional Pakistan Caucus as positive and constructive. She highlighted the active and positive role of the United States and deemed it highly important for attaining sustainable peace in the South Asian region. Pakistan-US relations are a valuable partnership based on shared values and strategic interests. She highlighted, 'Pakistan is emerging as a strategic partner for the United States in various sectors including textile. Punjab is the largest and most economically vibrant province in the country and welcomes US investment and cooperation in multiple sectors. The Pakistani-American community played the role of a strong bridge in further strengthening cordial relations between the two countries.' The CM outlined, 'We deem the United States as an important global ally on confronting formidable challenges such as climate change, food security and sustainable development. The Punjab government is keen to further expand its strategic partnership with the United States.' She apprised that Punjab province holds the honour of establishing the first Women's Virtual Police Station. Copyright Business Recorder, 2025