Pakistan, Turkiye to Set Up Special Economic Zone in Karachi

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Islamabad, July 9, 2025 – Pakistan and Turkiye are advancing their strategic partnership with plans to establish a Special Economic Zone (SEZ) in Karachi dedicated to Turkish entrepreneurs, strengthening economic ties between the two nations.

During a visit by Turkish Foreign Minister Hakan Fidan and Minister of National Defence Yasar Guler to Islamabad, Deputy Prime Minister and Foreign Minister Ishaq Dar announced the SEZ initiative at a press conference. The move aims to boost bilateral trade, which both countries target to reach $5 billion, following commitments made during Turkish President Recep Tayyip Erdogan’s February visit to Pakistan.

The SEZ in Karachi is expected to attract Turkish businesses, fostering investment in sectors like infrastructure, energy, and defense. Dar highlighted Turkish companies’ potential involvement in major projects, including the Jinnah Medical Complex and Daanish University in Islamabad, as well as offshore drilling and the privatization of Pakistan’s electricity distribution companies.

Beyond economic cooperation, the two nations are deepening ties in education and defense. Pakistan has allocated land for a Maarif School in Muzaffarabad, managed by the Turkish Maarif Foundation, which operates over 80 schools in Pakistan. Discussions also covered the revival of the Istanbul-Tehran-Islamabad train, with delegations set to finalize plans soon.

Defence collaboration was a key focus, with both sides agreeing to form joint working groups to enhance cooperation in emerging warfare domains, including advanced avionics and unmanned aerial systems. The Pakistan Air Force and Turkish defense officials emphasized professional exchanges, such as pilot training programs, to strengthen operational ties.

The visit included the first meeting of a joint commission under the High-Level Strategic Cooperation Council (HLSCC), reviewing progress in trade, investment, defense, and energy. Upcoming meetings of joint standing committees will further solidify these partnerships.

Both nations reaffirmed their commitment to counterterrorism and regional peace, with Fidan praising Pakistan’s measured approach in recent regional tensions. The leaders expressed a shared vision to elevate bilateral relations through expanded cooperation in culture, education, and energy sectors like mining and natural gas.