Agreements with Turkey: Monitoring of projects is a key to success

Turkey’s collaboration in low-cost housing schemes, at a time when demand is steadily outstripping supply, would be of great significance. CREATIVE COMMONS

LAHORE: 

At a time when the economy of Pakistan is facing some serious challenges, the visit of Turkish premier Recep Tayyip Erdogan, along with a high-powered business delegation, has provided some respite.

Turkey agreed to support and invest in Pakistan, primarily in infrastructure development projects like motorways and road networks, metro bus, transport, housing and the struggling energy sector. Turkey also signed memoranda of understanding for a preferential trade agreement, exchange of students, business groups, civil society activists, Islamabad-Istanbul container train service and defence cooperation.

The government is happy and hopeful and so are the experts and business community, who although describe this visit as a significant development but also give some suggestions about how to get the best outcome from cooperation between the two sides.

“I believe that these agreements are positive for the economy of Pakistan, but continuous monitoring of projects at the high level would be the key to success and a meaningful contribution to the society,” said Dr Ishrat Husain, former governor of the State Bank of Pakistan while talking to The Express Tribune.

“This is just the beginning, however, feasibilities of these projects would present a true picture,” he added.

For Husain, Pakistan’s development depends on infrastructural projects, especially in underdeveloped swathes of the country, where basic necessities of life are still missing. Motorways, highways and metro bus service have their own economic impact which cannot be denied, but such projects need private investment. “It’s not the government’s job to operate the transport system,” Husain remarked.

Turkey has already been working with the Punjab government. Prominent examples of Turkish investments include the Lahore Metro Bus Service and the Lahore Waste Management Company. Besides these, Turkey is also cooperating in different energy projects.

Turkey’s collaboration in low-cost housing schemes, at a time when demand is steadily outstripping supply, would be of great significance.

“We encourage and welcome foreign investment in the housing sector, it will create an atmosphere of competition which is good for the overall economy,” said Akbar Sheikh, Regional Chairman of the Association of Builders and Developers. “But I am sure if a level playing field is provided, then local contractors would outperform foreign firms.”

The banking sector is also excited about the agreements, which say both countries will encourage their respective state and private banks to open branches in Pakistan and Turkey. This collaboration in the banking sector will ensure regular operation of the Istanbul-Islamabad container train for land connectivity.

“Banks are always happy to open a branch where they find some opportunity,” said Mubashar Bashir, Corporate Communications and Marketing Head of MCB Bank.

If the governments are working to open a trade link, then the role of banks is a must for better trade volumes and long-term infrastructure projects, he added.

Exchange of delegations to gain experience is another agreement which is drawing appreciation from the academia. “This is a step in the right direction, internationalisation is an important part of education,” said Dr Sohail Naqvi, Vice Chancellor of the Lahore University of Management Sciences, while talking to The Express Tribune.