Pakistan, Turkey likely to ink SEF

Pakistan and Turkey are likely to ink Strategic Economic Framework (SEF) during the visit of Turkish President Recep Tayyip Erdogan, including defence, finance, trade, economy, customs, agriculture, banking and finance etc, well-informed sources told Business Recorder.

Pakistani side, sources said, is committed to delivery of 52 Super Mushak Primary Trainer Aircraft to Turkey. Turkish side will collaborate with Pakistan Defence Production Establishments (POF, HIT, PAC Kamra, NRTC, KSEW) for cooperation in the field of avionics, IT/Communication equipment, weapon and ammunitions and security equipment/vehicle/vessels. The Ministry of Defence Production has already contract with ASFAT (Turkey) for construction of four ships for Pakistani Navy (Two in Turkey and two in Pakistan). Turkish side is committed to delivery of 30 attack helicopters to Pakistan Army. Both sides have agreed in principle to develop collaboration between the relevant companies and organizations of the two countries for joint production of defence equipment including the following: (i) manufacturing of fifth generation fighter aircrafts; (ii) avionics components; (iii) establishment of MRO facilities; (iv) establishment of Gwadar shipyard; (v) manufacturing of ammunition/weapons; (vi) development/manufacturing of engines/bodies; (vii) communication equipment; and (viii) artificial intelligence, UAVs.

Both sides have agreed for simplification of customs procedures through cooperation in the areas of electronic data exchange in transit operations and multi-model infrastructure. The Turkish side will organise training programme to improve capacity of Pakistan Customs administration and systems.

Experience on Organised Industrial Zones (OIZs) will be shared and a feasibility study will be conducted to establish OIZs in Pakistan. Turkish side has agreed in principle to provide technical advice on establishment of OIZs in Pakistan. Pakistani side will provide a level-playing field to Turkish companies in Pakistan as per relevant laws of Pakistan.

Both countries will exchange experts to study SME support policies. Turkish side has agreed in principle to the following: (i) two experts from each of KOSGEB's counterpart organisation (SMEDA, TVETA, PSIC) will be invited to Turkey for a five workday training on SME support mechanism and policies; (ii) two experts from KOSGEB will be seconded in the counterpart organisation in Pakistan for an exchange program; and (iii) the exchange programme will be repeated on annual basis in case it is requested and the first exchange programme will be organised in Ankara. Upon B2B meetings and other events can be organised in Turkey and Pakistan, taking into consideration sectoral in both countries.

The Turkish side has agreed in principle to provide a credit line of $ 350 million for financing imports or eligible projects from Turkey. Terms and conditions of the credit facility including purpose of utilization will be mutually agreed between the two sides.

Both sides have agreed in principle to increase bilateral cooperation in the area of combating animal diseases and vaccine production. Towards this purpose, the Turkish side will encourage its companies for sale of animal vaccines in Pakistan subject to the regulatory approval. The Turkish side will also provide necessary technical assistance for production of vaccines with focus on FMD in Pakistan. The Turkish side will provide necessary assistance for establishment of animal registration system in Pakistan Training on artificial seeding and embryo transfer, embryo production will be given to Pakistani experts and frozen semen and embryo will be exported to Pakistan.

Turkish technical experts will assist Pakistan in developing its regulatory regime on tourism, focusing on planning and identification of tourist regions and construction of hospitality facilitates of international standards. Pakistani personnel will be provided on-the-job training programmeon front desk, food and beverage services, housekeeping, kitchen training and training of managers, in order to improve skills and knowledge of personnel in food and beverage and hotel sector in Pakistan. Additional training programs will be held in Pakistan for six days by 15 trainers designated by the Ministry of Culture and Tourism of Turkey with 15-35 participants.

Cooperation will be further strengthened in the areas of trade and investment, banking and finance, defence industry, energy and power, agriculture and water, transport and communications, tourism and culture and health education and housing. It was decided to supplement High Level Strategic Cooperation Council (HLSCC) with the Strategic Economic Framework (SEF). The Ministry of Foreign Affairs, however, is of the view that SEF is not intended to replace HLSCC which continues to be the main forum that guides bilateral relations in all fields, including economy. The SEF is a new mechanism and the Turkish side has placed it under the overall umbrella of the HLSCC with the Ministry of Foreign Affairs which is the focal point for the HLSCC, in the lead.

Both sides have agreed for simplification of customs procedures through cooperation in the areas of electronic data exchange in transit operations and multi-modal infrastructure. The Turkish side will organise training program to improve capacity of Pakistan Customs administration and systems.

Sharing of experiences on organ and tissue transplantation, establishing the supply system of safe blood and blood products, sharing of experiences on PPP facilitating sharing of experiences on health insurance system with the relevant authorities is also part of the agreement between the two countries. Turkish side has agreed in principle to support Pakistan in health insurance and reimbursement systems development in terms of knowledge sharing.

Both the countries shall facilitate development of commercial relations in the field of pharmaceuticals including medicines, vaccines, medical devices, surgical goods, alternative medicines and bio-tech products.

The two sides have agreed in principle to develop cooperation in the field of education including the following area: (i) cooperation between the leading universities of the two countries for faculty sharing, training and joint research; (ii) scholarship and students exchange program; and (iii) collaboration in the field of vocational and technical education. The parties will, each year, reciprocally grant scholarships in the language instruction, different fields of higher education and research, taking into consideration the areas that are needed and within the bounds of their possibilities.

Both sides have agreed on signing of combined freight transport agreement in due course of time as the trade volume between the two countries grows substantially. Both sides agree in principle to work for establishment of trade corridor (rail, road, sea and air connectivity), facilitating smooth flow of goods and services between the two countries.

Both sides have agreed in principle to encourage commercial cooperation between the Turkish airlines and Pakistan International Airlines (PIA). A committee of technical experts from both sides will identify and finalise the areas of cooperation. The Turkish side will extend cooperation and technical support for provision and modernization of rolling stocks. Turkish side will extend support for establishment of Joint Ventures (JVs) for operation and maintenance of Railway facilities in Pakistan. Pakistani side will encourage investment of Turkish companies in upgradation of Railway facilities in Pakistan. Turkish side will provide training for capacity building of the technical staff of Pakistan Railways.

Both sides have agreed in principle to encourage telecommunication industries of the two countries to expand collaboration for mutual benefits. Both sides have also agreed in principle to facilitate establishment of industry linkages for joint development of software. Collaboration for development of hardware system for ICT sector shall be encouraged by two sides. Pakistan side will encourage participation of Turkish companies in cellular sector in Pakistan.

The Turkish side has agreed in principle to extend technical support and share knowledge for development of Information Technology Parks in Pakistan including R&D development and support mechanisms. Development of agricultural industry and technology of aquaculture breading are also part of the understanding.

Both sides have agreed in principle to encourage their businessmen for establishing joint ventures in industrial sectors for value addition of products and services and export to their countries. Both sides will encourage their companies to cooperate in exploration of investment opportunities in the following areas: (i) auto industry particularly public transport and trucks; (ii) special economic zones; (iii) mining minerals; (iv) food processing and value addition; (v) tourism and hospitality; (vi) construction sector; (vii) diesel/ electric locomotive and railways wagons; (viii) textile including textile machinery; (ix) surgical and medical equipment; and (x) sports goods.