Pakistan, Türkiye aim to boost trade to $5 billion, deepen energy and defense ties

Turkish Foreign Minister Hakan Fidan (left), Defense Minister Yaşar Güler (right) and Pakistan's Deputy Prime Minister and Foreign Minister, Ishaq Dar, pose for the press in Islamabad, Pakistan, on July 9, 2025. (@MIshaqDar50/X)
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Updated 09 July 2025
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Pakistan, Türkiye aim to boost trade to $5 billion, deepen energy and defense ties

  • Deputy PM Dar announces Karachi special economic zone for Turkish investors
  • Turkish and Pakistani leaders explore joint aerospace and warfare tech initiatives

ISLAMABAD: Pakistan and Türkiye on Wednesday announced plans to expand bilateral trade to $5 billion and deepen cooperation in energy, defense, and strategic infrastructure, as senior ministers from both nations met in Islamabad amid growing regional instability.

Turkish Foreign Minister Hakan Fidan and Defense Minister Yaşar Güler arrived in Pakistan late Tuesday for high-level discussions with political and military leaders. The visit, described by Pakistan’s foreign office as a sign of “deepening strategic ties,” included consultations on regional stability, trade expansion, and defense modernization.

At a joint news conference with Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar, the Turkish foreign minister said both sides were committed to strengthening what has long been a close bilateral partnership.

“Economy, energy, defense industry, education and culture are areas where we are extending our cooperation each day,” Fidan said. “The joint working groups under the High-Level Strategic Cooperation Council — from defense, from energy, from education — are all working in a very productive manner.”

“We are aiming to increase our commercial relations to $5 billion,” he added. “In the field of energy, we are intensifying joint activities in mining and also in precious stones, as well as natural gas and the oil sector.”

Fidan highlighted a recent agreement signed in April between Turkish Petroleum Corporation (TPAO) and a Pakistani state-owned firm to explore offshore oil and gas, calling it a “preliminary step toward broader structural cooperation” in the energy sector.

On defense cooperation, Fidan described joint initiatives as “a strategic step for the security of both countries,” noting that multiple projects in defense manufacturing and technology were already underway.

ECONOMIC ZONE, RAIL REVIVAL

Speaking at the joint press conference, Deputy PM Dar announced several new initiatives aimed at increasing Turkish investment in Pakistan.

 

 

“We are pursuing establishment of a Special Economic Zone dedicated for Turkish entrepreneurs in Karachi,” he said, adding that Pakistan was working to revive the long-dormant Istanbul–Tehran–Islamabad freight train, which was once seen as a key transnational trade route linking South Asia with Europe.

“Our delegations are meeting in coming weeks to finalize the roadmap for its revival,” he said.

Dar added that Turkish companies were being considered for major upcoming infrastructure and energy projects, including the Jinnah Medical Complex, Danish University, offshore drilling operations, and privatization of electricity distribution companies (DISCOs).

The deputy PM said the two nations had also agreed to revive the long-dormant Joint Ministerial Commission after 11 years and the Pakistani minister of commerce and the Turkish minister of defense would be co-chairing a joint session of the Commission in coming weeks.

“All this work will lay a solid foundation for the 8th High-Level Strategic Cooperation Council, which will be held next year in Türkiye and co-chaired by the Honourable President of Türkiye [Recep Tayyip Erdoğan] and the Prime Minister of Pakistan [Shehbaz Sharif],” Dar said.

DEFENSE TIES

In a separate engagement, Turkish Defense Minister Yaşar Güler met with Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu at the Air Headquarters in Islamabad to assess the state of bilateral defense cooperation and discuss emerging regional threats.

According to Pakistan’s military media wing, Inter-Services Public Relations (ISPR), both sides agreed to set up joint working groups to deepen collaboration in aerospace technologies, advanced training, and new domains of warfare.

Güler praised the operational readiness of the Pakistan Air Force, particularly during its recent conflict with India, and expressed interest in expanding industry-to-industry partnerships.

He also emphasized the importance of joint ventures in disruptive technologies, including unmanned aerial systems, advanced avionics and pilot exchange programs. Both parties pledged to enhance joint air exercises and finalize plans for more intensive training cooperation.

The ISPR said the meeting reflected the “shared commitment of both the brotherly nations to enhance strategic cooperation, solidify defense ties and promote lasting institutional linkages between the Armed Forces of Pakistan and Türkiye.”


Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

Updated 05 December 2025
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Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

  • Pakistani officials, Binance team discuss coordination between Islamabad, local banks and global exchanges
  • Pakistan has attempted to tap into growing crypto market to curb illicit transactions, improve oversight

ISLAMABAD: Pakistan’s finance officials and the team of a global cryptocurrency exchange on Friday held discussions aimed at modernizing the country’s digital payments system and building local talent pipelines to meet rising demand for blockchain and Web3 skills, the finance ministry said.

The development took place during a high-level meeting between Finance Minister Muhammad Aurangzeb, Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib, domestic bank presidents and a Binance team led by Global CEO Richard Teng. The meeting was held to advance work on Pakistan’s National Digital Asset Framework, a regulatory setup to govern Pakistan’s digital assets.

Pakistan has been moving to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight, and encouraging innovation in blockchain-based financial services.

“Participants reviewed opportunities to modernize Pakistan’s digital payments landscape, noting that blockchain-based systems could significantly reduce costs from the country’s $38 billion annual remittance flows,” the finance ministry said in a statement. 

“Discussions also emphasized building local talent pipelines to meet rising global demand for blockchain and Web3 skills, creating high-value employment prospects for Pakistani youth.”

Blockchain is a type of digital database that is shared, transparent and tamper-resistant. Instead of being stored on one computer, the data is kept on a distributed network of computers, making it very hard to alter or hack.

Web3 refers to the next generation of the Internet built using blockchain, focusing on giving users more control over their data, identity and digital assets rather than big tech companies controlling it.

Participants of the meeting also discussed sovereign debt tokenization, which is the process of converting a country’s debt such as government bonds, into digital tokens on a blockchain, the ministry said. 

Aurangzeb called for close coordination between the government, domestic banks and global exchanges to modernize Pakistan’s payment landscape.

Participants of the meeting also discussed considering a “time-bound amnesty” to encourage users to move assets onto regulated platforms, stressing the need for stronger verifications and a risk-mitigation system.

Pakistan has attempted in recent months to tap into the country’s growing crypto market, crack down on money laundering and terror financing, and promote responsible innovation — a move analysts say could bring an estimated $25 billion in virtual assets into the tax net.

In September, Islamabad invited international crypto exchanges and other VASPs to apply for licenses to operate in the country, a step aimed at formalizing and regulating its fast-growing digital market.