ISLAMABAD: Deputy Prime Minister and Federal Minister for Foreign Affairs Ishaq Dar said that Pakistan is exploring opportunities to enhance cooperation in financial and logistics services including opening of Turkish banks in Pakistan to support bilateral trade flows.
In a written reply to a question in the National Assembly on Friday, the minister said that in support of these efforts, the government is also planning to convene the 6th session of the Pakistan-Turkiye Joint Ministerial Commission (JMC) in Islamabad, revitalising institutional framework for economic cooperation.
He said that Turkiye has also expressed strong interest in investing in Pakistan’s Special Economic Zones (SEZs). He said that in response, the prime minister has directed the Board of Investment to develop a dedicated investment package for Turkish investors. He said that Pakistan wants to enhance trade and investment cooperation with Turkiye, in line with mutually agreed target of $5 billion by 2025. He said that bilateral trade volume currently stands at approximately $1.02 billion.
He said that Pakistan’s growing IT sector over $2.6 billion in exports annually, presents substantial opportunities for Turkish investment and joint ventures. He said that Turkish companies are being invited to participate in the Jinnah Medical Complex Project, which aligns with both countries’ vision for accessible healthcare.
In another written reply to a question, Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari said that renegotiating agreements with 36 IPPs (Independent Power Producers) and GPPs, leading to a reduction in the consumer end tariff. He said that the government has also terminated contracts of 06 IPPs leading to saving in capacity cost reduction. He said that the government saved Rs3.612 trillion over the life of the projects through these renegotiations.
He said that the negotiations with remaining IPPs are under process and the relief shall be passed on to the consumers once the negotiations are finalised.
The minister said that the amount of the circular debt as of March 2025 is Rs2,396 billion. He said that the matter relating to circular debt is being managed under Circular Debt Management Plan (CDMP). Moreover, efforts are being made by the Task Force/ Ministry of Energy (Power Division)/Ministry of Finance to curtail the circular debt.
He said that further, an amount of Rs1.2 trillion is being arranged to finance/ refinance the current stock of circular debt. He said that the tenure of this loan will be six years with the interest rate at 6-months KIBOR minus 0.9 per cent. He said that the same will be paid through the Debt Service Surcharge collected from the electricity consumers.
Copyright Business Recorder, 2025
