Turkiye’s Erdogan, Pakistan’s Sharif discuss boosting cooperation in defense, energy, infrastructure

Prime Minister Muhammad Shehbaz Sharif meeting with Turkish President Recep Tayyip Erdogan (right) in Istanbul on 25 May 2025. (PMO)
Short Url
Updated 25 May 2025
Follow

Turkiye’s Erdogan, Pakistan’s Sharif discuss boosting cooperation in defense, energy, infrastructure

  • Sharif is visiting Iran, Azerbaijan, Tajikistan and Turkiye on five-day regional diplomacy visit
  • Ankara openly supported Pakistan in recent military confrontation with archrival India

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif met Turkish President Tayyip Erdogan in Istanbul on Sunday and said the two countries would strive to boost economic cooperation, particularly in defense production, energy, IT, infrastructure development and agriculture.

Sharif reached Istanbul on Sunday as the first stop in a five-day regional diplomacy tour that will also see him visit Iran, Azerbaijan and Tajikistan.

Ankara expressed solidarity with Islamabad in a military standoff with India earlier this month when the two nuclear-armed neighbors traded missile, drone and artillery strikes for days, killing around 70 people on both sides. A ceasefire was reached on May 10. 

Ankara also maintains cordial ties with India but after Erdogan’s expression of support for Pakistan in the recent conflict, Indian grocery shops and major online fashion retailers have boycotted Turkish products. Indian travel firms have also reported drop in Turkiye bookings over Pakistan support.

A statement released by Sharif’s office after delegation-level talks with Erdogan said the PM expressed “heartfelt gratitude” to the government and people of Turkiye for its support during the conflict with India, the worst between the two nations in decades. 

“Emphasizing the need to further strengthen economic cooperation, particularly through joint ventures and enhanced bilateral investment, the prime minister highlighted key sectors including renewable energy, information technology, defense production, infrastructure development, and agriculture as areas of mutual interest and potential,” the statement said. 

The two leaders also followed up on the implementation of key decisions taken during the 7th session of the High-Level Strategic Cooperation Council held in Islamabad on Feb. 13. 

“Both sides agreed to take steps for achieving 5 billion USD annual bilateral trade target as agreed earlier by the two leaders,” the statement from Sharif’s office said. 

Erdogan’s office said he told Sharif it was in the interest of Turkiye and Pakistan to increase “solidarity” in education, intelligence sharing and technological support in the fight against terrorism.

Erdogan spoke by phone with Sharif on May 7 to convey his solidarity after India first hit Pakistan and Azad Kashmir with missiles. Leaders from the two nations had several contacts subsequently and it is widely believed that Turkiye played an important role, besides the US, UAE and Saudi Arabia, in convincing India and Pakistan to back off and agree to a ceasefire. The two nations have strong ties, both being largely Muslim countries and sharing historical links.

Bitter rivals India and Pakistan have fought three wars, including two over the disputed region of Kashmir, since gaining independence from British rule in 1947. Both claim the Himalayan territory in its entirety but rule it in part. They both acquired nuclear weapons in 1998.


Pakistan stocks hit record high on hopes of rate cut, improved US ties

Updated 19 January 2026
Follow

Pakistan stocks hit record high on hopes of rate cut, improved US ties

  • Benchmark index gains 2,662 points, or 1.44 percent, to close at an all-time high of 187,761 points
  • Engro, UBL, Hub Power, Fauji Fertilizer, Meezan Bank and Service Industries added 1,554 points to index

ISLAMABAD: The Pakistan Stock Exchange (PSX) hit a record high as it surpassed the 187,500-point mark on Monday, with analysts citing improving ties with the United States and expectations of an imminent interest rate cut.

The benchmark KSE-100 index gained 2,662.86 points, or 1.44 percent, to close at an all-time high of 187,761.69 points, up from the previous close of 185,098.83 points, according to PSX data.

The stock gains came a day after President Donald Trump invited Prime Minister Shehbaz Sharif to join the so-called “Board of Peace” for Gaza, amid increasing Pakistan-US diplomatic and economic engagement since Trump’s rise to presidency.

“Falling government bond yields and improving Pakistan-US relations played a catalyst role in record close at PSX,” Ahsan Mehanti, chief executive officer of Arif Habib Commodities, told Arab News.

Meanwhile, Karachi-based market research firm Topline Securities said bulls extended their rally as hopes of a rate cut by the State Bank of Pakistan (SBP) fueled investor sentiment.

“Investor sentiment remained upbeat, largely fueled by rising expectations of an imminent interest rate cut,” it said in a post on X. “Market participants increasingly priced in a 50bps reduction in the upcoming monetary policy, which kept buying interest alive and underpinned broad-based gains.”

In December, the SBP cut its key policy rate by 50 basis points to 10.5 percent, resuming monetary easing after four meetings in a move that surprised many despite International Monetary Fund guidance to keep policy “appropriately tight” to anchor inflation expectations.

Engro Holdings Limited (ENGROH), United Bank Limited (UBL), Hub Power Company Limited (HUBC), Fauji Fertilizer Company Limited (FFC), Meezan Bank Limited (MEBL) and Service Industries Limited (SRVI) collectively added 1,554 points to the benchmark index on Monday, according to Topline Securities.

“Total market volumes stood at 1,195 million shares, while the value of shares traded amounted to Rs63.7 billion,” the research firm said. “[Bank Makramah Limited] BML led the volume chart, emerging as the most actively traded stock with 246 million shares.”