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NIAS Area Studies
PAKISTAN READER
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PR Explainer
Pakistan-Turkiye: Looking beyond the recent visits, and bolstering defence ties
Abhiruchi Chowdhury
What happened?
On 8 July, the Foreign Minister of Turkiye Hakan Fidan and the Defence Minister Yasan Guler landed in Islamabad for a two-day visit.
On 9 July, Pakistan’s Foreign Minister Ishaq Dar announced setting up a Special Economic Zone to be solely utilized by Turkish businessmen in Karachi. He also referred to revitalizing the “Istanbul-Tehran-Islamabad train” and expressed interest in Pakistan drawing benefits from the localization of Turkish defence industry.
Turkish Foreign Minister stated that the two countires would back each other in combatting terrorism. He praised Pakistan’s position and measures taken during the brief military confrontation with India terming it ”wisdom-oriented attitude." He reaffirmed the resolve of the two countries to surge bilateral trade volume to USD five billion.
On the same day, Defence Minister met Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu in Islamabad. As per the Inter-Services Public Relations (ISPR), the two sides decided to formulate “dedicated joint working groups” for increasing progress in various areas of common interests, and take steps for increasing cooperation in new “domains of warfare.” The Turkish defence minister appreciated Pakistan Air Force, claiming that it showcased “exceptional performance” in the confrontation against India.
What is the background?
First, a brief history of Pak-Turkiye ties. In 1951, the two countries inked the “Treaty of Friendship”, which provided a solid foundation. In 1954, the two signed the Friendship and Cooperation Agreement, to strengthen economic and cultural ties. Jinnah and , Liaqat Ali Khan, had continually stressed building stronger ties with Muslim countries, especially with Turkiye. Despite the internal turbulence witnessed by both countries due to coups and military takeover, the two countries managed to maintain strong ties. Both have also been the members of Central Treaty Organization.
Second, the recent engagements and high-level visits between Turkiye and Pakistan. On 25 May, PM Sharif landed in Istanbul to embark on his two-day visit to Turkiye. He expressed gratitude for the Turkish President for backing Pakistan in the May 2025 military confrontation against India. The visit was a part of PM Sharif’s “four-nation visit” to enhance ties with the “friendly countries” which backed Pakistan against India. Earlier in February, President Erdogan visited Islamabad. He stated that the investors from his country would be urged to formulate “flagship projects” in Pakistan and highlighted how the two countries have expanded collaboration in the defence sector. During his visit, 24 agreements in areas such as trade, agriculture, energy, culture, water, science, education, defence, health, etc were inked between the two countries. On 5 July, the two leaders also met on the sidelines of the Economic Cooperation Organization summit.
Third, the growing defence cooperation. Formulating the High-Level Cooperation Council led to the institutionalization of bilateral ties between Turkiye and Pakistan in 2009. The High-Level Cooperation Council eventually evolved into the High-Level Strategic Cooperation Council (HLSCC). In the joint declaration of HLSCC, Turkiye and Pakistan vowed to enhance “security and defence collaboration.” The declaration sought to promote the buying of defence equipment from each other and increasing cooperation amongst law enforcement agencies. The two countries also decided to formulate a Joint Working Group on Defence Industry. From 2020 to 2024, according to Stockholm International Peace Research Institute, Pakistan received 10 per cent of the arms exported by Turkiye. Pakistan has been as a big market for Turkish made drones such as Bayraktar TB2 and Akinci. The two countries are looking towards enhancing “deeper missile technology exchange.” Pakistan and Turkiye also engage in naval cooperation with the former buying MILGEM-class corvettes from the latter. With regards to their cooperation in counter-terrorism, on 01 June, the two countries initiated a “joint-intelligence operation” which resulted in arrest of a militant belonging to Islamic State at the Pak-Afghan border.
Fourth, the bilateral trade. In 2024, it exceeded USD 1.3 billion. In 2024, Turkiye exported goods worth USD 918 million to Pakistan and imported around USD 440 million worth goods. Turkiye primarily imports cotton fabrics, apparels, synthetic dyes, PVC whereas it exports cotton, textile yarn, textile machinery, etc to Pakistan. In 2024, investments from Turkiye into Pakistan amounted to USD two billion, whereas the Pakistani direct investment into Turkiye totalled USD 700 million.
What does it mean?
First, the aim of two countries of achieving USD five billion bilateral trade will still take at least 15 years. From 2020 to 2024, the two countries were able to increase their bilateral trade volume by close to 50 per cent. To increase the volume of bilateral trade to USD five billion would mean that the two countries should see a jump in their trade by 370 per cent. Also, despite the push from the Turkish President, investors would not be too keen to invest in Pakistan considering the deteriorating security situation in the country.
Second, Pakistan would look to increase its defence purchases from Turkiye. With the kind of assistance Pakistan received from Turkiye during the military confrontation against India, the recent meeting between PAF chief and defence minister of Turkiye signifies that Turkiye could emerge as the main supplier of drones to Pakistan in future.
Third, with President Erdogan, Turkiye would continue to steer towards conservative Muslim countries like Pakistan, especially on the multilateral forums. With Turkiye’s stance on contentious issues such as Israel-Palestine conflict and J&K dispute resonating with that of Pakistan, the two countries would look to support each other in international arenas.
References:
Abdullah Momand, “Pakistan, Turkiye to establish special economic zone for Turkish entrepreneurs in Karachi: Dar,” Dawn, 9 July 2025
“Turkiye-Pakistan relations,” Ministry of Foreign Affairs Republic of Turkiye
“Pakistan, Turkiye pledge to achieve $5bn bilateral trade target,” Dawn, 13 February 2025
“PM Shehbaz thanks Turkish President Erdogan for supporting Pakistan during escalation with India,” Dawn, 25 May 2025
“IS operative captured at Pak-Afghan border in joint Pak-Turkiye intelligence operation,” Dawn, 1 June 2025
Syed Irfan Raza, “PM warns India against violating Indus treaty,” Dawn, 5 July 2025
“Turkiye denies sending weapons to Pakistan amid rising cross border tensions with India,” The Economic Times, 29 April 2025
Shaukatullah & Sadaf Sarfaraz, “Prospects and Obstacles in the Bilateral Relations between Pakistan and Turkey,” Journal of Social Science Review, 2023
Abhishek Yadav, “Turkiye–Pakistan Defence Cooperation: Evolving Dynamics,” IDSA, 9 February 2024
In Focus
UK suspends ban on Pakistani airlines after five years
On 17 July, The News International reported that the United Kingdom's Air Safety Committee has removed Pakistan from its Air Safety List, following sustained technical cooperation with Pakistan’s Civil Aviation Authority (PCAA) and a comprehensive review of aviation safety standards. This decision enables Pakistani airlines to apply for permission to operate flights to the United Kingdom. Previously, the European Union (EU) had removed the ban on Pakistan International Airlines (PIA) and other operators from flying to different European destinations. The ban was implemented in July 2020 by the UK following the fake pilot licence scam during the tenure of the Pakistan Tehreek-e-Insaf (PTI) government. Then-aviation minister, Ghulam Sarwar Khan, claimed that pilots were operating planes with fake licences after PIA's Airbus A-320s crashed in Karachi, killing nearly 100 individuals. PIA has historically been the only carrier to operate long-haul flights to the United Kingdom and the European Union. Pakistani carriers will still need to secure individual operating permits from the UK Civil Aviation Authority. PIA’s spokesperson said the airline was finalizing preparations to resume UK flights “in the shortest possible time” and had submitted its proposed schedule. He stated that flights would resume on the Islamabad-Manchester route, with three weekly flights planned initially. Additionally, Defence Minister Khawaja Asif upheld the decision as a “major milestone,” calling the inclusion in the Air Safety List a “national embarrassment.” Further, he praised former federal minister Khawaja Saad Rafique for following up on the case continuously over the past three years. British High Commissioner to Pakistan Jane Marriott also welcomed the removal of the ban on Pakistani airlines. Prime Minister Shehbaz Sharif expressed gratitude for the restoration of flight operations. However, he went on to blame the previous administration for making “reckless and irresponsible statements” that had damaged Pakistan’s reputation and isolated the national airline from key international routes.
On 17 July, an editorial in The Nation titled ‘Price of Spectacle’ expressed appreciation for the United Kingdom’s decision to remove Pakistan from its Air Safety List, declaring it as a “diplomatic and administrative success for the PML-N government,” while criticizing the then-PTI government of indulging in “media spectacles” rather than provising “steady, competent governance.” The editorial argued that this development is significant because the government has secured the national carrier’s return to a key international market, given the sizeable Pakistani diaspora in Britain, thereby enhancing the airline’s “commercial appeal,” bolstering efforts to privatise Pakistan International Airlines (PIA). The editorial criticised irresponsibility demonstrated by the then-PTI government, specifically the casual statements made by then-aviation minister Ghulam Sarwar Khan, resulting in Pakistan’s aviation industry being blacklisted by multiple countries. In conclusion, the editorial asserted that this incident highlights how unverified claims, when made by those in positions of authority, can inflict lasting damage on national institutions, showcasing that responsible communication is crucial at the highest levels of government. (Mehtab Haider. “UK removes ban on Pakistani airlines following safety improvements,” The News International, 17 July 2025 ; “Price of Spectacle,” The Nation, 17 July 2025)
Federal government orders closure of Utility Stores Corporation amidst privatization drive
On 17 July, The Express Tribune reported that in a meeting chaired by Finance Minister Muhammad Aurangzeb, the federal government reaffirmed its decision to close the loss-making Utility Stores Corporation (USC) by 31 July 2025. The government has also formed a committee to consider providing severance packages to 11,421 employees, amounting to approximately PKR 29 billion. It is unclear whether the government would give the severance package to all 11,421 employees or limit it to the regular 5,217 employees. The Ministry of Finance stated that the committee has been mandated to ensure “a smooth and transparent closure process” by formulating a “fair and financially viable” Voluntary Separation Scheme (VSS) for USC employees and recommending a structured timeline for privatization.
According to the State-Owned Enterprises Performance Report released by the Ministry of Finance last week, USC struggled with “high liabilities, ineffective subsidy utilisation, and operational inefficiencies,” citing its declining sales, reliance on government subsidies, and poor inventory management, creating a cash flow crisis and worsening fiscal risks. USC’s balance sheet revealed a weak equity of PKR 1.8 billion, overshadowed by current liabilities of PKR 50.7 billion, showcasing solvency risks and negative working capital. During the July-December period of FY 2024-25, USC recorded PKR 6.1 billion in losses, adding to the burden of compounding operational losses. The report concluded that without structural reforms such as privatization, supply chain digitalization, direct beneficiary targeting (DBT) of subsidies, and transition to a lean wholesale model, USC will “continue draining fiscal resources with no viable path to self-sustainability.”
During the meeting, various aspects of the proposed VSS were evaluated, including its potential size, projected fiscal impact, and the legal and operational consequences associated with its structure and disbursement. The Committee recommended consultation with the Privatization Commission for optimal structuring and feasibility of privatization. Furthermore, to facilitate a comprehensive review, the Chair established a subcommittee headed by the Secretary of the Establishment Division. The Sub-committee will submit its report to the main Committee by the end of the week, comprising representatives from the Finance Division and the Industries & Production Division. Finally, the Committee shall consolidate its findings, finalise its report, and submit its recommendations to the Prime Minister in line with the Terms of Reference. (Shahbaz Rana, “Govt offloads another white elephant,” The Express Tribune, 17 July 2025)
In Brief
POLITICS
PM Sharif calls for accountability from underperforming ministries
On 17 July, The Nation reported that a meeting of the federal cabinet was held under the chairmanship of Prime Minister Shehbaz Sharif. Prime Minister Sharif stated that he wants to make this message loud and clear—“it is all about delivery and service to the nation.” He warned that ministries performing well will be acknowledged and appreciated, while those falling short will be held accountable. Decisions taken in the cabinet meeting include a 15 per cent increase in Employees’ Old-Age Benefits Institution (EOBI) pensions, providing old-age benefits to the informal labor sector, initiation of legal procedures regarding the draft of the Sea Carriage Shipping Documents Bill, a five-year extension of exemption on the import of life-saving drugs used in hospitals, and endorsement of the decisions made in the meetings of the Cabinet Committee on Legislative Cases held on 2 and 3 July. While addressing the cabinet, PM Sharif spoke about various issues such as arrangements during Muharram, disaster preparedness amid the ongoing monsoon season, the tragic incident in Swat, recent positive trends in macroeconomic indicators, and service delivery. Particularly, PM Sharif appreciated Federal Minister for Planning Ahsan Iqbal for his ministry’s effective utilization of development funds, noting that development spending had reached over PKR 1 trillion under the Public Sector Development Programme (PSDP). (“Ministries falling short of performance will be held accountable, warns PM Shehbaz,” The Nation, 17 July 2025)
ECONOMY
Federal cabinet approves 15 per cent increase in EOBI pensions
On 16 July, The Express Tribune reported that the federal cabinet has approved a 15 per cent increase in pensions provided by the Employees' Old-Age Benefits Institution (EOBI) based on the recommendations of the Ministry of Overseas Pakistanis and Human Resource Development. In order to ensure that there is no additional burden on the national budget, this pension increase will be financed through the institution’s resources. PM Sharif instructed the establishment of a cabinet committee for the implementation of institutional reforms in the EOBI. Additionally, the committee will also consider extending old-age benefits to informal workers, consisting of domestic staff, agricultural labourers, and other marginalised workers who have been historically excluded from such programs. (“Cabinet okays 15% hike in EOBI pensions,” The Express Tribune, 16 July 2025)
SECURITY
Militants kill two police constables in Dera Ismail Khan, Khyber Pakhtunkhwa
On 16 July, gunmen attacked Kulachi tehsil in Dera Ismail Khan, Khyber Pakhtunkhwa, which resulted in the killing of two police constables. As per the spokesman of the police, the constables were on a motorbike when the militants opened fire on them. In response, police managed to neutralize one militant. “A Kalashnikov rifle and ammunition” were retrieved from the dead assailant. Police and law enforcement agencies sealed the spot and launched a “search operation” to detain the culprits. Separately, on 15 July, an Improvised Explosive Device went off, which was placed on a gas pipeline in Lakki Marwat. The explosion resulted in causing severe “damage” to the gas pipeline. The pipeline is used to transfer gas to Punjab. In July, three previous attacks took place that targeted “gas infrastructure.” (Muhammad Irfan Mughal, “Two cops martyred in Dera; Lakki gas pipeline blown up,” Dawn, 17 July 2025)
Militants attack bus traveling from Quetta to Karachi, three passengers killed
On 16 July, a bus journeying towards Quetta from Karachi was attacked by unknown militants, r resulting in three people losing their lives, and seven people being injured. The attack took place in Kalat, Balochistan. As per The News International, militants who were hiding in the mountains fired upon the bus and threw grenades on it. The spokesman of the Balochistan government, Shahid Rind, informed that security forces have sealed the area and initiated a “search operation” to bring the culprits under the wrath of the law. PM Sharif denounced the assault, alleging that “Fitna-al-Hindustan” was behind the attack. “Fitna-al-Hindustan” is a term Pakistan has been using to designate militant organizations operating in Balochistan. On the attack, Balochistan CM Sarfraz Bugti warned, “those who murder innocent people will be hunted to the last man.” Not long back, two buses journeying towards Punjab came under attack from the militants in Balochistan. The militants kidnapped and murdered nine people from the two buses. (Nadeem Kausar, “3 killed, 7 wounded as terrorists ambush bus in Balochistan’s Kalat,” The News International, 16 July 2025)
Counter-Terrorism Department kills three militants in KP
On 17 July, the Counter-Terrorism Department (CTD) of Khyber Pakhtunkhwa police carried out an operation in which they managed to neutralize three militants in Bannu. The spokesman from the CTD informed that the militants belonged to the banned Gul Bahadur and Zarar groups. The CTD also retrieved “explosives, automated weapons, a pistol, and a motorbike” which were in possession of the militants. Previously, CTD had managed to kill three militants belonging to the proscribed Tehreek-e-Taliban Pakistan (TTP) in Lakki Marwat. (Rasool Dawar, “CTD neutralises three terrorists in Bannu operation,” The News International, 17 July 2025)
EXTERNAL
Iran’s ambassador to Pakistan to have all privileges and immunities despite FBI listing him as “most wanted,” says Foreign Office
On 16 July, the foreign office came to the defence of Iran’s ambassador to Pakistan Amiri Moghadam, after the US Federal Bureau of Investigation (FBI) listed him in the “most wanted” category. According to the FBI, Iran’s envoy to Pakistan was responsible for the kidnapping, detaining, and killing of retired FBI agent Robert Levinson. Robert Levinson, in 2007, had visited Kish Island in Iran, after which his whereabouts remained unknown. On designating the Iranian ambassador as “most wanted,” Foreign Office spokesman Shafqat Ali Khan said, “The ambassador of Iran is widely respected for his role in the promotion of Pakistan-Iran relation.” Further, he clarified that the ambassador would have all the “privileges, immunities, and respect.” FBI has announced that it will pay USD five million in addition to the US State Department’s Rewards for Justice Programme’s USD 20 million for “information” which could help in the retrieval of the former FBI agent. (Azaz Syed, “Pakistan defends Amiri as ‘respectable, duly accredited’ envoy,” The News International, 17 July 2025)
Chinese foreign minister expresses readiness to enhance cooperation in agriculture, mining, and industry”
On 16 July, Foreign Minister Ishaq Dar met China’s Foreign Minister Wang Yi in Tianjin, China. Foreign Minister Wang Yi expressed China’s readiness to increase bilateral collaboration with Pakistan in areas such as “agriculture, mining, and industry.” He also expressed China’s backing for Pakistan in launching “anti-terror operations” and reckoned that Pakistan was doing its best to make sure that Chinese citizens are safe in Pakistan. The meeting between the two foreign ministers took place on the sidelines of the Shanghai Cooperation Organization Council of Foreign Ministers meeting. Pakistan and China reiterated their resolve to enhance bilateral ties and back “peace, stability, and development” in the region. Both sides also delved upon the progress of China-Pakistan Economic Corridor and other “multilateral collaborations.”(“China says ready to deepen ties with Pakistan in agriculture, industry, mining,” The News International, 17 July 2025)
Pakistan and EL Salvador sign Letter of Intent to increase collaboration in the use of digital assets
On 16 July, Minister of State for Crypto and Blockchain Bilal Bin Saqib met President of El Salvador Nayib Bukele in San Salvador, El Salvador. The two leaders agreed to ink a “letter of intent” for collaborating in “Bitcoin-related initiatives.” The meeting between the two leaders emphasized how the two countries can cooperate on the use of “Bitcoin and digital assets.” El Salvador is the first country to assign Bitcoin as “legal tender.” The Minister of State for Crypto and Blockchain appreciated El Salvador, asserting that its adoption of bitcoin as a legal tender has set an example for other countries to follow. The letter of intent inked between Pakistan and El Salvador would provide a start for cooperation between the two countries in key areas like “public sector adoption of digital assets, blockchain-based financial inclusion, and design of policies for emerging economies.” Recently, Pakistan formulated a new body called the Pakistan Virtual Assets Regulatory Authority, which will be administering the dealing of virtual assets. (Aimen Siddiqui, “Pakistan, El Salvador forge crypto ties in ‘Biplomacy’ visit,” The News International, 17 July 2025)
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