ISLAMABAD: Turkiye and Pakistan on Thursday agreed to expand the scope of their goods trade agreement, marking a significant step towards achieving a $5 billion bilateral trade target, and laid the groundwork for Turkish firms to develop a special economic zone in Pakistan.

This was announced during Turkish President Recep Tayyip Erdogan`s visit to Islamabad, where he co-chaired the seventh session of the PakistanTurkiye High Level Strategic Cooperation Council (HLSCC) with Prime Minister Shehbaz Sharif.

Established in 2009, HLSCC is the highest decision-making forum between the two countries, guiding bilateral relations through joint standing committees covering trade, investment, defence, energy, agriculture, health and education.

`HLSCC is the highestlevel mechanism that institutionalises this ancient friendship,` President Erdogan said while emphasising the importance of the meeting.

During the visit, the two countries signed 24 agreements and memoranda ofunderstanding (MoUs) to enhance cooperation in defence, energy, agriculture, information technology, health and other sectors. The signing ceremony was overseen by President Erdogan and PM Shehbaz after the HLSCC`s meeting.

`We have agreed with Prime Minister Sharif to continue our efforts to reach the $5 billion trade volume target between Turkiye and Pakistan,` MrErdogan said. `To this end, we are expanding the scope ofourcurrentgoods trade agreement as a first step.

Bilateral trade between Turkiye and Pakistan reached a record high of $1.4bn in 2024, rising nearly 30 per cent from the previous year.

Both leaders expressed optimism about building on this momentum, with Mr Erdogan urging Turkish investors to engage more actively in Pakistan`s growing market.

`We are encouraging our investors, who are the driving engines of economic cooperation, to engage more in Pakistan and develop flagship pro-jects,` Mr Erdogan said after the ceremony held for signing MoUs and agreements.

PM Shehbaz, while speaking at the PakistanTurkiye Business Forum, assured Turkish businesses of Pakistan`s full support, emphasising his administration`s commitment to facilitating investment opportunities.

`We are determined to further promote our deep friendship and mutual relations,` he said. `I want to assure my very dear brother, President Erdogan, that our teams will work closely to convert these agreements into action.

A key highlight of Mr Erdogan`s visit was the announcement of a special economic zone to be developed by Turkish firms to boost industrial production and economic growth in Pakistan. The initiative is another major step towards deeper bilateral economic collaboration.

`The announcement of the special economic zone to be built by Turkish firms for industrial production is going to materialise through our joint cooperation,` the PM said.

The 24 agreements signed during the visit covered a wide range of areas, including defence cooperation, power, energy, mining, trade, industrial development, water resources, seed production, scientific education and training, banking, religious services, halal food, media, legal cooperation, health, aerospace, and cultural exchanges.

Ministers from both sides presented progress reports from nine joint standing committees. Two newly formed committees on health and information technology also delivered their first reports. Both leaders reaffirmed their commitment to strengthening strategic cooperation and economic growth.

President Erdogan and PM Shehbaz also held in-depth discussions on regional and global issues, including security and counterterrorism. The premier emphasised the importance of regional stability and cooperation in combating terrorism.

`The menace of terrorism is a common factor for Pakistan and Turkiye, and together, we will fight this menace until we defeat it once and for all,` the premier said.

Mr Erdogan added, `We reaffirmed our determination to advance our strategic cooperation, including in defence industries, and to continue our military dialogue.

President Erdogan arrived in Islamabad in the early hours of Thursday, accompanied by First Lady Emine Erdogan and a high-level delegation. Pakistan was the final stop on his three-nation tour, which also included Malaysia and Indonesia.

During his stay, Mr Erdogan met President Asif Ali Zardari and Prime Minister Shehbaz Sharif. Chief of Army Staff Gen Asim Munir was also present during Mr Erdogan`s meeting with PM Shehbaz and attended the HLSCC discussions.

On Thursday morning, the visiting dignitary was given a guard of honour at the Prime Minister`s House as he arrived there for a bilateral meeting.

The Turkish president also planted a pine tree sapling in the lawns of PM House to mark the deep-rooted friendship between the two nations.

The president and his entourage later left for Turkiye on Thursday night.