News
Tuesday, November 01, 2011
Pakistan, Turkey agree to finalise currency swap deal* President Zardari stresses need for removing trade barriers and easing visa restrictions
* Calls for fast-tracking conclusion of preferential trade agreement between two countries
ISTANBUL: President Asif Ali Zardari and his Turkish counterpart Abdullah Gul on Monday agreed to finalise the currency swap agreement between the two countries this week to further deepen, broaden and strengthen their partnership in every field.
The two presidents also reviewed progress on the implementation of the ECO Trade Agreement (ECOTA), Gul Train, the High Level Cooperation Council (HLCC) between the two countries and the setting up of Techno Parks in Pakistan in collaboration with Turkish universities in their wide-ranging bilateral talks in Istanbul on Monday, on the sidelines of trilateral summit on Afghanistan.
President Zardari was assisted in the talks by Secretary General to the President Salman Farooqui and Pakistan’s Ambassador in Turkey Muhammad Haroon Shaukat, while Turkish Ambassador in Pakistan M Babur Hizlan assisted President Gul.
Spokesperson to the President Farhatullah Babar said that the currency swap agreement would enable traders and businessmen of the two countries to trade in their respective currencies without drawing from their dollar-based foreign exchange reserves.
This would reduce the pressure on the foreign exchange reserves of the two countries on the one hand and give a quantum jump to bilateral trade between the two countries. Farhatullah Babar said that the president had been looking at boosting Pakistan’s trade as a means to generate economic activity in the country for job creation to wean the youth away from extremists and militants.
As Pakistan’s efforts to seek increased market access to European and US markets were still underway, President Zardari turned to regional markets to boost Pakistan’s trade.
Similar currency swap agreements are also envisaged with some other countries in the region, he said.
During the talks, President Zardari said that the level of bilateral trade and investment between the two countries remained far below the real potential and that there was a need to increase bilateral trade to the level which would commensurate with the level of their political relationship.
The existing bilateral trade of one billion dollars should be doubled to two billion dollars next year, the president opined.
President Zardari said that there was a need to remove trade barriers and ease visa restrictions. The signing of an agreement on currency swap arrangement was an important step in trade facilitation.
The president also called for fast-tracking the conclusion of Pakistan-Turkey Preferential Trade Agreement (PTA). The president said that it was an encouraging sign that private sectors were collaborating in the energy, construction, food processing and rubber industry, adding, “We would like to see further joint ventures and investment in key sectors such as infrastructure, engineering, energy, agriculture, telecommunications and mining.”
Pakistan would welcome Turkish investment in hydro-power generation, alternate energy and rental thermal plants, he said. app
Courtesy www.dailytimes.com.pk