pakistan turkey energy cooperation

The Pakistan and Turkey Energy Cooperation Agreement: A Strategic Partnership 

Last month, President Recep Tayyip Erdogan attended the 7th session of the Pakistan-Türkiye High-Level Strategic Cooperation Council in Islamabad. During the session, 24 agreements and a memorandum of understanding (MOU) were signed, focusing on trade, defense, energy, and culture. The end goal is to significantly boost bilateral trade, with a target of $5 billion, and encourage Turkish investments in Pakistan's Special Economic Zones.

Last month, the 7th session of the Pakistan-Türkiye High-Level Strategic Cooperation Council took place in Islamabad. President Recep Tayyip Erdogan attended the session. During the session, both countries signed several agreements—twenty-four to be precise—and a memorandum of understanding (MOU). The agreements covered various areas of development and trade, including energy, defense, technology, finance, and culture. There were also discussions on strategic cooperation.

This is an attempt to strengthen the existing relationship between the two countries.

Turkey-Pakistan Strategic Energy Partnership

Pakistan and Turkey share deep-rooted historical and cultural ties. Turkey was among the first countries to recognize Pakistan, and the Pakistani government describes their bond as “brotherly,” emphasizing shared religious, linguistic, and civilizational connections.

Pakistan-Turkey Energy Agreements

In 2018, Pakistan exported around $349 million in products, which increased to $457 million in 2023. At the same time, Turkey’s exports amounted to around $466 million. Thus, a trade relationship between the two countries is not new. 

In 2022, Pakistan and Turkey also signed a Preferential Trade Agreement (PTA) to strengthen business relations. In this agreement, Turkey decreased tariffs on 261 items for Pakistan. Pakistan also attempted to seek investment from Turkey in the energy sector.

There was an important focus on strengthening strategic ties during last month’s meeting between the two countries. An MOU was signed between Turkey’s Secretariat of Defense Industries and Pakistan’s Ministry of Defense Production and between Turkey’s Aerospace Industries and Pakistan’s Naval Research and Development Institute. Plans were made for the joint production of newer fighter jets for Pakistan. Turkey also offered four MILGEM corvette warships, the first of which has already been delivered. Another key focus of the talks was regarding the increased terrorism in South Asia. Talks were made to solve the issues, with a special emphasis on the role of Afghanistan within the region. The Prime Minister of Pakistan, Shehbaz Sharif and Turkish President Recep Tayyip Erdogan expressed the need for cooperation from the Afghan Taliban in countering terrorism within the region. However, the Turkish president wasn’t so outright in pointing fingers towards Afghanistan.

Energy Sector Collaboration

In the energy sector, several agreements were made, too. One of the agreements included technical visits from TEDAŞ (Turkish Electricity Distribution Company) to assist Pakistan in power distribution and maintenance. A key aspect of the discussions was energy cooperation between Pakistan and Turkey, particularly in the realm of green and renewable energy such as solar and hydroelectricity, where both nations explored investment opportunities and technical support to modernize Pakistan’s energy infrastructure. This perhaps showcases development in the previously mentioned attempts to seek investment in this sector. Another focus point was the privatization of the energy sector with help from Turkey, which had plans to privatize the hydropower sector. Apart from these points, several other agreements within the energy sector were also made, including sub-group meetings and cooperation opportunities. The talks on hydroelectricity go back as far as 2014.

Major emphasis was also put on a Memorandum of Understanding (MOU) regarding trade and customs cooperation. According to the Federal Bureau of Revenue (FBR), one of the tasks of the agreement is “cooperation for the establishment of Electronic Data Exchange” between Pakistan and the Turkish Ministry of Trade and Customs Agency. The focus of this organization would be to facilitate communication through exchanging information and documents. This communication would focus on matters of trade to make it more efficient. The subject of the said MOU was finalized as “Agreement Between the Republic of Turkey and the Islamic Republic of Pakistan on Co-operation and Mutual Assistance in Customs Matters,” a progression of an agreement signed in Ankara in 2002. Focus must also be put on countering smuggling attempts by combating different smuggling methods. 

The FBR also reports that talks regarding fighting and curtailing offences related to customs took place, ensuring more swiftness in trade. Furthermore, these information exchange efforts are expected to help in import and export clearance times. The FBR also expects that this would lead to a reduction in tax and duty evasion. According to the Chairperson of FBR, Ms Nausheen Javaid, the MOU would “go a long way in facilitating and securing bilateral trade between both countries.”

Bilateral Energy Partnerships

These agreements and MOUs are expected to significantly boost bilateral trade, with a target of $5 billion. Prime Minister Shehbaz Sharif acknowledged that there is still a long way to go but expressed optimism for future progress. There have been talks of Turkey investing in the Special Economic Zones, areas designated by the CPEC for economic development. Turkey can find an opportunity in this by strengthening bilateral relations and helping Pakistan build infrastructure, as they have a strong construction sector.

In total, 24 memorandums were signed “in the fields of trade, water resources, agriculture, energy, culture, family and social services, along with science, banking, education, defence, and health.” 

The highest number of MOUs signed in this joint declaration are related to defence – amounting to four. Apart from this, two MOUs related to education and training in the scientific fields were signed. One MOU was related to media. One MOU is related to the aerospace industry, two are in the cultural fields, and two are in the banking sector, including a few more focused on different fields. In short, Pakistan and Türkiye signed several agreements and MOUs jointly at the 7th session of the Pakistan-Türkiye High-Level Strategic Cooperation Council in February 2025. 

As both countries aim to expand their trade relations to $5 billion, the energy cooperation between Turkey and Pakistan is expected to play a crucial role in fostering sustainable economic growth and strengthening bilateral cooperation in the coming years. The timing of the agreements is also important, as terrorism in the region is increasing. One of the major focuses of the talks was countering terrorism—the Taliban especially, but also militant organizations from Syria. In this regard, Turkey made an offer for MILGEM corvette ships. What the future might hold for the two countries remains to be said.

* The terms Turkey and Türkiye have been used interchangeably throughout this piece by the author.


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About the Author(s)
Shahalam Tariq

Shahalam Tariq is based in Rawalpindi, Pakistan. His writings on history, theory and literature have appeared in The Friday Times and Bazm e Dana. His poems have appeared in The Writers Sanctuary, Borderless Journal and Gentle Visitations.