Pakistan Offers 1,000 Acres to Turkiye for Karachi Export Processing Zone
Islamabad | September 2025 – Pakistan has offered 1,000 acres of land, free of cost, to Turkiye for the development of a dedicated Export Processing Zone (EPZ) within the Karachi Industrial Park.
The proposal, first introduced by Prime Minister Shehbaz Sharif during his April 2025 meeting with Turkish President Recep Tayyip Erdoğan, aims to create an investor-friendly ecosystem and boost bilateral trade toward a $5 billion target.
High-Level Engagements in Turkiye
A senior Pakistani delegation, including officials from the Foreign Office, Special Investment Facilitation Council (SIFC), Board of Investment (BoI), and the Sindh Export Processing Zone Authority, recently concluded a two-day visit to Istanbul and Ankara.
During the meetings with Turkish authorities and business leaders, Pakistani officials presented the Karachi EPZ as a strategic opportunity for manufacturers seeking cost efficiency and regional market access.
“Our message was clear: Karachi Industrial Park offers immense potential. Turkish companies relocating here could reduce freight costs from $4,000 to $1,000 per ton for regional exports,” one official noted.
Turkish officials are expected to visit Karachi soon to review the proposed site.
Learning from Turkiye’s Experience
The delegation also toured established EPZs in Istanbul and Ankara to study operational models. Turkiye, with more than 60 years of experience in export zones, has successfully transitioned to privately managed zones since 1995. Incentives include long-term tax holidays, low land charges, and uninterrupted utilities — a model Pakistan is considering for Karachi.
Growing Bilateral Trade
Bilateral trade between the two countries reached $1.4 billion in 2024, a 30% increase from the previous year. Pakistan’s exports, led by cotton and textiles, stood at $352 million, while Turkiye’s exports, mainly machinery and chemicals, totaled $250.8 million.
Both sides are now working toward a $5 billion trade volume, with talks underway to expand the Preferential Trade Agreement (PTA) and explore a Free Trade Agreement (FTA).
A Catalyst for Industrial Cooperation
Officials in Islamabad believe the Karachi EPZ could mark the beginning of a new phase of industrial partnership, with Turkish companies relocating manufacturing units to Pakistan to benefit from reduced costs, improved logistics, and enhanced access to Middle Eastern and Central Asian markets.
