Turkey, Pakistan should reflect their affinities in economic cooperation

Turkey, Pakistan should reflect their affinities in economic cooperation
by Gozde Nur Donat, Ankara
Pakistani Ambassador Muhammad Haroon Shaukat has stated that Pakistan and Turkey are “one nation in two countries,” in terms of their common history as well as cultural and political values, but laments that the two do not reflect this closeness in their economic relations.

During an exclusive interview with Today's Zaman, in honor of the 66th year of Pakistan's independence on Aug. 14, the ambassador noted that although there has been important growth in bilateral trade volume, it is not yet satisfactory, taking into account the trading potential of the two countries. The trade volume amounted to $1 billion in the last two years, but the two nations aim to double this figure by the end of 2012, reaching $2 billion.
“I am very unhappy at the level of trade between Turkey and Pakistan. I would like to see it five times, 10 times [the present figure] in the next two or three years. It can happen and it will happen. But the conditions are still not entirely in place,” Shaukat maintained.
Turkey and Pakistan have increased mutual cooperation since the establishment of the High Level Cooperation Council (HLCC) at the prime ministerial level in October 2009. During the last annual meeting of the HLCC in May, the two signed nine cooperation agreements in the fields of investment, energy and communications.
The two countries also finalized a Currency Swap Agreement (CSA) in November 2011, allowing them to trade in their own currencies, and are in negotiations to finalize a comprehensive Preferential Trade Agreement (PTA), currently discussing which sectors should be included in such an agreement. Because Pakistan does not have a Free Trade Agreement (FTA) with the EU, the two countries could not sign an FTA, as Turkey is a signatory to the Customs Union (CU) agreement with the EU.
Pakistan and Turkey have also increased their cooperation in terms of transportation. The Gül Train project, which is a railroad project connecting İstanbul-Tehran-Islamabad, was launched in August 2009. A logistics company has been established under the aegis of the Turkish Union of Chambers and Commodity Exchanges (TOBB) to operate the container train service.
The ambassador asserted that Pakistan is in a privileged location, next to the oil-rich Middle East, as a transit route to Central Asia, which is another major source of the world's energy resources. “We are at the crossroads. We are standing upon what is globally called the Silk Road. Because of the security situation, the road links have not been used very much. It is only a matter of time,” Shaukat claimed.
Expressing contentment over the level of cooperation between Pakistan and Turkey in terms of state-to-state relations, the ambassador maintained that such collaboration should also take place between the private sectors.
Currently, Pakistan's exports to Turkey are on a downward trend due to safeguard duties that Turkey has imposed on textile products. Turkey, aiming to protect its developing domestic textile industry, applies that safeguard to China, India and other textile exporters.
Shaukat acknowledged that Pakistan needs to diversify its trade, developing sectors other than textiles, but “it takes time,” he stated, adding: “Pakistan is in a very difficult position. We are the lead country in the war on terror.”
Despite being a resource-rich country, Pakistan's private sector has suffered major losses during the war with restive neighbor Afghanistan, now more than a decade old. The ambassador estimates the total losses suffered by Pakistan since the start of active engagement by NATO coalition forces in Afghanistan at $80 billion.
Touching on the sectors representing trade and investment opportunities for Turkish manufacturers and entrepreneurs in Pakistan, Shaukat mentioned construction, agriculture, energy and information technology. Emphasizing the scope for Turkish companies in terms of construction, the ambassador indicated an exceptional appetite in Pakistan for more business centers, highways, airports and dams. The electricity shortage in the country necessitates more dams and reservoirs, said the ambassador, creating an important opportunity for Turkish construction and energy companies.
The importance of construction projects has further risen following the major earthquake of October 2005 in Pakistan-administered Kashmir. The ambassador mentioned that a lot of reconstruction work has taken place in the north of Pakistan, with Turkey's help.
Shaukat also stated that Turkish construction companies are careful to comply with requirements to ensure buildings are able to withstand earthquakes.
In terms of natural disasters, there is mutual generosity between the two countries. Shaukat claimed that Pakistani people had great empathy for the suffering of the Turkish people in relation to the Van earthquakes, which started in October last year, and also conveyed gratitude to Turkey for its generous aid following the 2005 earthquake and the floods of 2010 and 2011.
The ambassador expressed an important opening for Turkish investment in Pakistan's energy sector. Turkish investments, he said, in terms of energy could take many forms, from building new dams and reservoirs to creating electricity networks
Furthermore, Pakistan enjoys large coal reserves, amounting to around 185 billion tons in total. These coal mines are intact and unutilized at present, said Shaukat, and Turkey could make an important contribution to coal mining, and to projects related to the generation of electric power from this energy resource.
Pakistan is also a member country of the Trans-Afghanistan Pipeline project, also known as TAPI (Turkmenistan-Afghanistan-Pakistan-India pipeline), which would transport natural gas from Turkmenistan, from the Caspian Sea, to the other three nations. The idea for the project dates back to the 1990s, and it aims to create an independent export route for member countries.
Stating that efforts to finalize the project are ongoing, under agreements signed between the four nations, the ambassador stated: “One important condition [for the realization of such projects] is real peace in Afghanistan. We hope that transition is coming.”
ARABAŞLIK ‘Time for political process to come to the fore in Afghanistan'
Since the Soviet invasion of Afghanistan in the Cold War climate of 1979, Afghanistan has remained a restive country, and itself experienced a civil war starting in the 1990s, following the withdrawal of Soviet troops from the country. The situation has also affected Pakistan, pushing millions of Afghan refugees into the country. Pakistan is home to 3 million Afghan refugees, while Iran is accommodating 1.1 million.
Afghanistan was the subject of a foreign intervention in 2001 by a US-led coalition of NATO forces attempting to put a stop to al-Qaeda's use of Afghanistan as a base, after the terrorist organization claimed responsibility for the Sept. 11 attack. The attack, which left some 3,000 people dead, propelled the US into a global war against al-Qaeda and its affiliates.
Regretting the restive situation in its northwestern neighbor for the past three decades, the ambassador claims that “it is not possible to fight terrorism with bullets. It is time for the political process to be on the front line from now on.”
Claiming that the use of force has bred more militancy in the country, Shaukat expressed hope that a political system administered entirely by Afghans would be initiated in the country very soon. The foundations of such a system have been laid in the country ahead of the complete withdrawal of US forces by 2014.
Shaukat also ruled out allegations that Pakistan has any relationship with Taliban insurgents seeking refuge on the Pakistani side of the border. He rejected the notion that there are Taliban sanctuaries in Pakistan. However, he pointed out, since the two countries have a long border of some 2,600 kilometers, it is difficult for Pakistan to deal with all terrorist groups infiltrating the country.
Recalling that Pakistan has suffered a loss of 30,000 people in the course of the war on terror in its neighbor nation, the ambassador stated that his country would be the biggest beneficiary of peace and stability in Pakistan. “What we need is the aid and assistance of the international community and not accusation and blame,” he stressed.
‘International community should take unified position on Syrian crisis'
Evaluating the 17-month Syrian crisis, the Pakistani ambassador expressed a common position with Turkey on the matter.
“In the Syrian crisis, we share the same concerns as Turkey. We want an end to violence. We want the suffering of the Syrian people to be eliminated. We want a peaceful resolution of the problem in accordance with the aspirations of the Syrian people,” Shaukat stated.
However, the ambassador has not favored any approach linking resolution to “coercive measures,” such as military intervention in Syria. Pakistan, which is a non-permanent member of the UN Security Council, abstained from voting on the last Western-backed resolution of July 20 over the Syrian crisis, on the grounds that the resolution imposed coercive measures on Syria by threatening the country with sanctions under Chapter 7 of the UN Charter. Russia and China also wielded their dual veto in the third council resolution since the beginning of the conflict.
Chapter 7 sets out the Security Council's powers to maintain peace, and authorizes the council to take military and nonmilitary action when regional security is at stake and threatened by an act of aggression.
The ambassador also made clear that any approach that divides the world on the Syrian crisis, such as military intervention, should be avoided in favor of finding common ground.
“We want more of a consensus approach. We do not want to see the world divided on Syria. So anything that divides the world we should keep away from, and work for a consensus to promote peace in Syria. A peace that is led and owned by the Syrians themselves,” the ambassador stated.
Courtesy: Today's Zaman, 14 August 2012

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