Pakistan Offers 1,000 Acres to Turkiye for Karachi Export Zone

Pakistan has offered 1,000 acres of land, free of cost, to Turkiye for the establishment of a dedicated Export Processing Zone (EPZ) within Karachi Industrial Park.

The initiative, first proposed by Prime Minister Shehbaz Sharif during his April 2025 meeting with Turkish President Recep Erdoğan, is designed to create a streamlined, investor-friendly environment and propel bilateral trade toward an ambitious $5 billion target.

A high-level Pakistani delegation, comprising officials from the Foreign Office, Special Investment Facilitation Council (SIFC), Board of Investment (BoI), and Sindh Export Processing Zone Authority, recently wrapped up a two-day visit to Istanbul and Ankara. The team met with Turkish government counterparts and business leaders, pitching the Karachi EPZ as a game-changer for Turkish manufacturers seeking regional market access and cost efficiencies.

According to a report by a national daily, Pakistan invited Turkish authorities to visit the Karachi Industrial Park, where the 1,000 acres have been exclusively reserved for Turkiye. They are expected to visit soon and will inform us of the dates shortly.

During the meetings, Pakistani officials highlighted Karachi’s strategic location, robust infrastructure, and proximity to Middle Eastern and Central Asian markets. “Our message was clear, Karachi Industrial Park offers immense potential. Turkish companies relocating here could cut freight costs from $4,000 to just $1,000 per ton for exports to the region,” the report added.

The delegation also toured Turkish EPZs in Istanbul and Ankara to study their operational models. Turkiye, with over six decades of experience in EPZs, has transitioned from government-run to privately managed zones since 1995, offering 20-year tax holidays, nominal land charges, and uninterrupted utilities. Pakistani officials believe this model could serve as a blueprint for the Karachi EPZ.

Bilateral trade between Pakistan and Turkiye reached a record $1.4 billion in 2024, a 30 percent jump from the previous year. Pakistan’s exports, led by cotton and textiles, stood at $352 million, while Turkiye’s exports to Pakistan, dominated by machinery and chemicals, totaled $250.8 million. Both sides are now eyeing a $5 billion trade volume, with discussions underway to expand the Preferential Trade Agreement (PTA) and explore a full-fledged Free Trade Agreement (FTA).

Officials in Islamabad see the proposed Karachi EPZ as a potential catalyst for a new phase of industrial cooperation, with Turkiye relocating select manufacturing units to Karachi to leverage cost savings and market access.