Pakistan has offered Turkey 1,000 acres of land in the Karachi Industrial Park to establish an Export Processing Zone (EPZ). The move is aimed at attracting Turkish investors and raising trade between the two countries to $5 billion. Companies operating in the zone will enjoy tax incentives, affordable facilities, and benefits to encourage exports.
Government Initiative and Historical Ties
Prime Minister Shehbaz Sharif’s administration made the offer to Turkish President Recep Tayyip Erdoğan during their meeting in April 2025. The proposal reflects the ongoing cooperation between Pakistan and Turkey, including Turkey’s support during the May 2025 India-Pakistan tensions around Operation Sindoor.
A Pakistani delegation also visited Turkey to study how its export zones operate. Unlike earlier government-run zones, these are now managed by private firms and provide investors with 20-year tax breaks, cost-effective land, and uninterrupted access to essential utilities.
Strategic Benefits for Pakistan
The Karachi EPZ is expected to significantly reduce logistics costs for Turkish manufacturers. Shipping goods from Karachi to Central Asia and Gulf countries could drop from around $4,000 per ton to $1,000 per ton, making the zone highly attractive for production and export.
Expanding Regional Trade
Pakistan also plans to enhance trade relations with Turkey and pursue a Free Trade Agreement (FTA) with Gulf Cooperation Council (GCC) nations. The new EPZ is intended to create mutual advantages for both countries, supporting investment growth and stronger economic ties.
