Punjab Turkey Project

 
PBIT PUNJAB TURKEY PROJECT

Punjab Board of Investment and Trade | PBIT

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Punjab Turkey Project

CONTENTS
  
Turkey Quick Facts ……………………………………………………………………………………………………………Page 3 
Background and Current Status of the Bayindir case…………………………………………………………Page 4 
Turkey’s Political Depth………………………………………………………………………………………………..…..Page 6 
US as an ally………………………………………………………………………………………………………………………Page 6 
Alliance with MUSIAD……………………………………………………………………………………………………….Page 6 
Natural Partnership with Pakistan………………………………………………….…………………………………Page 8 
Punjab Political Similarity with Turkey………………………………………………………………………………Page 9 
Turkey and the European Union…………………………………………………………………………….…………Page 10 
 
Turkey’s Pain Points Grid …………………………………………………………………………………………………Page 11 
     Rising Unemployment…………………………………………………………………………………………Page 11 
  Integration of Women in the workforce………………………………………………………………Page 11 
   Rising Political Risk Index………………………………………………….…………………………………Page 11 
   Inevitable Food Crisis…………………………………………………………………………………….……Page 11 
   Human Development Index………………………………………………………..………………………Page 11 
  Losing out to cost‐competitive India and China…………………………………………..………Page 11 
 
Solutions by creating Synergies with Punjab……………………………………………………………………Page 12 
Capitalizing on Punjab’s rich resource base……………………………………….……………………………Page 12 
Joint women integration campaigns……………………………………………….………………………………Page 12 
Strengthening Judiciary……………………………………………………………..……………………………………Page 12 
Vocational Training Exchange Programs…………………………………………………………………………Page 12 
Launching Joint Ventures in Textiles………………………………………………………………………………Page 12 
 
Turkey and Punjab’s Trade and Investment Opportunities……………………………………………Page 13 
Agriculture…………………………………………………………………………………….………………………………Page 13 
Livestock……………………………………………………………………………………………….………………………Page 16 
Manufacturing and Industry…………………………………………………………………………………………Page 18 
Mining Industry …………………………………………………..………………………………………………………Page 20 
Power and Energy……………………………………………………………………….……………………….………Page 22 
Transportation and Construction………………………………………………………………………….………Page 25 
Education…………………………………………………………………………………………….……….………………Page 27 
Tourism……………………………………………………………………………………………………………..…………Page 28 
 
 
Annexure 1 – Prospective Punjab Turkey Project List……………………………………………………Page 30 
Annexure 2 – Summary of list of projects by line departments……………………………………Page 31 
List of References………………………………………………………………………………………………………..Page 32 
 
 
 
 

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Punjab Turkey Project

TURKEY FACTS

• Turkey is roughly rectangular in shape and is 1,660 kilometers wide

• Land connections to three continents and the sea surrounding it on three sides
• Access to strategic locations with proximity to the Balkans, European Union, Black Sea region,
Central Asia and Middle East
• Population of 73 million and workforce of 50 million
• According to international projections Turkey is among the top 10 world economies for the next
20 years
• Possesses high quality human capital with focus on manufacturing, finance, construction and
energy sectors
• Investors are attracted mostly by the stable tax structure
• Average growth of 7% for the past 6 years and accumulated growth of 49% since 2002
• Macroeconomic Stability through continuity of reforms and policies make it an investor safe
haven
• As a member of the G-20 Turkey holds sway in world politics
• Turkey has 7 regions 81 provinces and 923 districts

Turkish Exports (000 USD) POPULATION 2008

Manufacture of basic metals 11,706,464 Total 71,517,100
Motor vehicles and trailers 8,927,746 Urban 53,637,825
Wearing apparel 7,046,636 Rural 17,879,275
Textiles 6,673,105 Urban/Rural Ratio (Source) 3:1
Manufacture of machinery 5,783,846 Population Growth Rate 13.10%
Food products & beverages 4,247,871 GDP Per Capita (YTL) 13,367
Fabricated metal prod 3,179,128 GDP Per Capita (USD) 10,436
Chemical products 3,030,936
Rubber and plastic products 2,906,896 TURKISH CITIES TOTAL POPULATION
Electrical machinery 2,852,874 Istanbul 12,697,164
Ankara 4,577,094
Turkish Imports (000 USD)
İzmir 3,790,406
Chemical products 15,252,551
Konya 2,503,099
Petroleum & natural gas 11,854,006
Bursa 2,125,140
Manufacture of basic metals 9,462,307
Adana 2,002,479
Manufacture of machinery 9,077,766
Antalya 1,719,751
Motor vehicles and trailers 7,425,403
İçel 1,651,400
Petroleum & nuclear fuel 7,394,114
Şanlıurfa 1,443,422
Electrical machinery 4,641,789
Diyarbakır 1,362,708
Waste and scrap 3,307,796
Gaziantep 1,285,249
Communication Apparatus 3,220,325
Manisa 1,260,169
Agriculture and Livestock 3,179,566
Hatay 1,253,726

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Samsun 1,209,137

BACKGROUND AND CURRENT STATUS OF THE BAYINDIR CASE

Introduction:

The contract for M-1 project was awarded to a Turkish firm Bayindir in 1993. The contract was
terminated on Employer’s Convenience in 1994 before Bayindir had mobilized on site. Bayindir was
compensated with USD 10.72 million through an arbitration award held in Pakistan. In 1997 a
revival agreement was signed with Bayindir giving very lucrative terms over and above the 1993
contract.

A glance of the terms of the contract follows:

• Completion period enhanced from 2 to 3 years without reducing contract cost from PKR
16,820 million
• Component of the payment to the contractor in a foreign currency (FC) enhanced from 40%
to 50% (as Bayindir had promised to arrange FC credit of 50% of the contract price)
• Exchange rate assumed at 1USD=PKR 26.1058 as in 1993
• Bank guarantees for mobilization advance allowed to be directly issued by Turkish banks
without any intermediary arrangement by a scheduled bank in Pakistan
• Performance guarantee changed from one to be furnished by a scheduled bank in Pakistan to
a corporate guarantee by Bayindir Holding, a subsidiary company of BCI
• Liquidated damages revised downward from 0.10% to 0.01% per day for the first year and
0.03% per day subsequently
• Unprecedented mobilization advance at 30% of the contract price was paid in cash instead of
opening LC for the import of new equipment
• Recovery of the mobilization advance to be completed in 30 equal installments instead of 18
as in the original contract.

Bayindir’s progress on the project was very slow from day one. The Engineer of the project had
served many notices for enhancing the progress but got no response from Bayindir. On April 17th
2000 Addendum No.9 was signed with Bayindir according to which it had to complete priority
sections in March 2001 but it failed to do so. Bayindir could achieve only 29% progress against
planned progress of 43% till April 2001. Bayindir was expelled from site in April 2001 due to
consistent slow progress. Moreover, of the total FC component of USD 322 million to be arranged
by Bayindir as per the contract, Bayindir could arrange only USD 100 million, even though it was
getting 50% payments in FC through interim payment certificates.

ICSID Award dated 27-08-09 in arbitration case

Bayindir Vs Islamic Republic of Pakistan and Turkish banks cases

The case is 100% in favor of GoP. Tribunal has exonerated GoP from all allegations of the
contractor and removed all restrictions from NHA imposed through its Procedural Orders No.1 and
11.

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Salient features of the award are:

• Bayindir’s assertion of violation of Bilateral Investment Treaty (BIT) by GoP in matters of

Bayindir’s investment have been rejected and all claims dismissed.
• Bayindir allegation of expropriation of its investment by GoP has been rejected
• NHA is free to pursue its cases in Turkey and local arbitration after Procedural Order No. 1
& 11 are no longer in effect
• Cost claims of both parties have been dismissed.
• Parties to share cost of ICSID equally
• NHA has been directed to seek redress in Turkey for default interest disputes raised in Is
Bank 14 March 2007 application in Turkish court

Amounts awarded and due in Turkey

• NHA has recovered USD 48 million for its two finalized cases of PKR 948 million and USD
36.2 million against Is Bank. The amount has been credited to NHA Account in Turkey.
• The amount in case of PKR 60.8 million will be available in this week.
• The cases against rest of the five banks for principal amount of Turkish Lira (TL) 57 million,
and interest of TL 199.51 million and USD 21.49 million are being pursued through M/s
Birsel Law Offices (BLO), NHA lawyers in Turkey.

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TURKEY’S POLITICAL DEPTH

Turkey and US

The US president Barak Obama announced that in the first 100 days of his office he would chose to
address a strategic Muslim capital to articulate his policy for the Muslim world post the Bush
Administration. Istanbul was chosen for this address to communicate the importance of Turkey as a
pivotal figure among Muslim countries.

In his visit to Turkey, the President’s second formal bilateral state visit, after Canada, President
Obama touched on an important political nerve for Turkey by strongly supporting Turkey’s entry into
the European Union.

Analysts say Turkey and United States are likely to be closer in coordination on South Asia and Iraq
than they will be on Iran and Arab-Israeli issues. Turkey is also needed to ensure sustainable relations
with the oil producing nations.

Nobuo Tanaka, executive director of the International Energy Agency says that oil investors in the
US and elsewhere need a stable Turkey to ensure continued entry into the Middle East and Central
Asian markets.

Alliance with MUSIAD (Consortium of Muslim Countries)

Frustrated by European equivocation, Turkey is considering a reversal of its policy on years of

antagonism with its Arab neighbors.

But it’s not just the urge to explore Muslim political alliance but the attraction of the combined
Muslim world assts that interests Turkey’s cutting-edge industrial sector. The Muslim world has a
50% share of the world’s oil production, 40% of its raw material exports, 7% of its agricultural
produce and 23% in world population. Turkey foresees demand for its services in these markets.

MUSIAD is an economic and political network of Afghanistan, Albania, Azerbaijan, Bosnia,

Kazakhstan, Kirghizstan, Kosovo, Palestine, Senegal, Sudan Tajikistan, Turkey, Turkmenistan and
Uzbekistan. Pakistan’s possible inclusion into the organization will effectively add depth to the group
and the idea can be proposed to now president Omer Cihad Vardan.

Turkey’s trade with Muslim countries is only 8% and unless Muslim countries maintain intensive
sectoral activities between their respective chambers of commerce this is unlikely to change. Likewise
ambassadors should pay particular focus on engagements in the economic as well as the political
realm.

The Muslim world comprises of 57 Muslim majority countries and about 80 Muslim societies
dispersed in an area covering 30 million square km with a population of 1.57 billion people.
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The OIC is another network of Islamic Countries that collaborates economically along the lines of
common heritage. However investments by OIC counties in other OIC countries have a 1% share in
total world FDI.

Even in the OIC, Turkey takes the lead, as it is 6th in the top OIC member countries in terms of per
capita GDP even though it only has a 5% population of the Islamic world.

Turkey is aware that the combined national income of 6 Gulf countries has doubled and is at USD
1,000 billion in 2008 and as a strategic player in all networks for Muslim countries, Turkey can play a
leading role in this capital flow. Turkey alone performs 65% of the industrial exports of the countries
in the Middle East and North Africa.

In the past seven years alone, the value of Turkey’s exports to the Middle East and North Africa has
swollen nearly sevenfold to USD 31 billion in 2008. From cars to tableware, dried figs to television
serials, Turkish products, unknown a decade ago, are now ubiquitous in markets from Algiers to
Tehran.

Already a vital conduit for sending energy from east to west, Turkey is set to grow in importance as
more pipelines come into operation. The most notable among these projects is Nabucco, a
proposed USD 11.7 billion scheme to carry gas across Turkey from Azerbaijan and possibly
Turkmenistan, Iran, Iraq and Egypt.

Another mega project by the Turkish construction firm TAV has just finished an airport terminal for
Egypt’s capital, Cairo and is building others in Libya, Qatar, Tunisia and the United Arab Emirates.

Turkey has hundreds of infrastructure contracts in Iraqi Kurdistan, and invested in shopping malls,
hotels and even schools. And although these achievements are partly due to an energetic pursuit of
trading privileges, such as Turkey’s free-trade pacts with Egypt, Israel, Morocco and Tunisia the real
reason for its success is the constant deliberations though these trade networks that Turkey has
invested in over the years.

Based on this investment relationship Turkey is proposing free-trade pacts with the six-member Gulf
Co-operation Council, which includes Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United
Arab Emirates. It is estimated that about 1.5 trillion dollars worth of petro-dollars are traded annually
in this region and this is despite the fact that 22 of the 57 Muslim members are in the least developed
countries category. Turkey has over the years become a hegemon in the banking sector and can
convert much of this USD 1.5 trillion hosted in western banks into its own financial institutions.

In 2009, delegations of Turkish ministers travelled to Baghdad and Damascus to sign a package of 48
cooperation deals with Iraq and 40 with Syria respectively. These deals included memorandums of
Understanding (MoUs) on almost all sectors ranging from tourism to counter-terrorism and joint
military exercises, the deals could end decades of tension between Turkey and its former Ottoman
provinces.

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Natural Partnership with Pakistan

The link between Pakistan and Turkey is etched in History. The contributions of Muslims of the
regions that today constitute Pakistan to the Turkish War of Independence were numerous and are
still remembered and revered by the Turkish people. Particularly they were touched by the gesture of
women who sent gold and silver to Mustafa Kemal to fund his resistance during the War of
Independence. This gold is displayed at Turkey’s national bank to this day to commemorate the
contributions of Pakistan.

Quaid-e-Azam Mohammad Ali Jinnah's admiration for Kemal Atatürk was deeply grounded on a
deep study on Atatürk, and Jinnah’s daughter called him “Greywolf” because that was what Atatürk
was referred to among friends.

On Atatürk’s death Jinnah described Atatürk as “the greatest Musalman of the age and one of the
greatest men to ever live.”

The Muslim League celebrated Kemal Day during the Pakistan Movement as remembrance and
renewal of a pledge to form a modern republic for Muslims of South Asia modeled after Turkey.
Jinnah presented Turkey as the model for Pakistan to follow in terms of republicanism, industrial
progress, women's rights and development. There is great similarity between Atatürk’s and Jinnah’s
vision for the nation, especially in terms of women's equality and empowerment and progress of their
people through modern education, rapid industrialization and economic development.

Turkey was the first modern Muslim majority republic and Pakistan was the second. Both Turkey
and Pakistan are successor states to two of the greatest Muslim empires: The Ottoman and The
Mughal Empires respectively.

Pakistan and Turkey Politics

Turkey pledged to increase the number of troops it has operating as part of NATO's International
Security Assistance Force. In addition to its military role, Turkey has demonstrated a willingness to
use diplomacy and development assistance to help achieve progress in South Asia. To this affect,
Turkey has organized several high-level trilateral summits between Turkey, Afghanistan, and Pakistan
to discuss cooperation on broad security issues and Turkey has made important investments in
education reform in Afghanistan and Pakistan.

Pakistan and Turkey Economy

Trade focus should be on a) quality b) demand of goods c) price points

One of the biggest drawbacks of Turkey in international trade is its inability to compete with rivals
such as India and China at the same price-quality level. This is where a natural alliance with Pakistan
comes into play. Pakistan for Pakistan is capable and does compete with these two giants in these
regards.

Turkey – EU Free Trade Agreement and the Pakistan Factor

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Most of the exports from Turkey to EU are duty free. However, this duty free access is subject to
stringent Rules of Origin to ensure that the exports from Turkey to EU are actually manufactured in
Turkey, for there is a certain minimum value addition that must take place in Turkey if the unfinished
goods originate from another country. This has helped Turkey to expand its exports particularly in
the textile and engineering sectors.

Turkish companies can invest in Pakistan and/or collaborate with Pakistani companies in such a way
that unfinished goods are manufactured in Pakistan and exported to the EU via Turkey after the
requisite value addition and preparing the final products taking place in Turkey. The benefit of this
partnership is that the cost of production in Pakistan is lower due to inexpensive labor and the easy
availability of raw materials in case of most industries. Turkish companies will contribute by way of
capital, advanced technology, better business practices and easy access to European markets.

Pakistan Turkey and Iran Grid

Historically this tripartite coordination was designed to foster political depth for all three country’s
regional networks.

The focus has largely been the land transportation route linking the three countries. Analysts expect
the Pakistan, Iran and Turkey railway launch in August 2009 to boost Pakistan's trade with Turkey
and Iran - currently estimated at USD 1 billion by as much as 50%.

Turkey has initiated an assertive and proactive diplomatic approach throughout the Middle East,
seeking "zero problems" with neighbors and aiming to achieve strategic depth by expanding the zone
of Turkish political and economic influence.

Punjab Political Similarity with Turkey

The Chief Minister Punjab whose party has links to Jinnah’s Muslim League has a vision for Punjab
and Pakistan as a technologically advanced, modern, educated hub and a staunchly independent
nation state along the lines of Prime Minister Erdogan's vision for Turkey.

Similarities between the AKP’s and PML-N’s goals and vision as centre right moderate Muslim
democratic parties working towards prosperous Turkey and Pakistan respectively as liberal free
market economies based on economic development, and a healthy interaction with the world.

The Chief Minister in his desire to revive and renew the RCD and D-8 economic grouping and
strong endorsement of the Istanbul-Teheran-Islamabad Rail project, brings with him a proposal to
extend the link to Lahore and Karachi as well thereby creating an unbroken railway from Pakistan to
Turkey.

Although there are a number of student exchange programs there is a need for further student and
professor exchanges. Turkish universities can be opened to those students who are unable to go to

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the US or UK anymore due to visa and other restrictions. Turkish Universities should be encouraged
to open local campuses in Pakistan - especially small towns in Punjab.

Turkey and the European Union

This is one of the key examples cited in Clash of Civilization lectures in academic circles around the
world – The fact that Turkey is kept out of the benefits of the EU club because it is not European
enough.

Turks doubt EU’s sincerity because even recently European leaders like France’s Nicolas Sarkozy
think that as Turkey is in Asia Minor, it is time to stop “lying” to Turkey about full membership and
that “he will not be the one to tell French schoolchildren that the borders of Europe extend to Syria
and Iraq.”

The EU keeps Turkey out by setting a group of standards and benchmarks that Turkey falls below.
For example, Turkey could comply with EU environmental laws which could cost USD 200 billion
however that would not guarantee membership. Likewise another EU benchmark involves opening
Turkey’s public-procurement market to European firms. That market is worth around €60 billion a
year.

An independent commission of pro-Turkey bigwigs, led by a former Finnish president, Martti

Ahtisaari, has published a progress report on September 7th 2009. They do not mince their words.
Actions by “some European leaders”, they say, have “all but derailed the process.” At the same time,
there has been a “regrettable” slowing of reforms inside Turkey. Add in polls that show growing
Euro-disillusionment inside Turkey, and a “vicious circle” is upon Turkey, the report concludes.

Out of the 35 chapters in the accession talks, only one has been completed. Eight are formally blocked
because Turkey has not kept an agreement to open its ports and airports to traffic from Cyprus, an
EU member since 2004 (Turkey does not recognize the Greek-Cypriot republic and insists that
Turkish north Cyprus is being unfairly blockaded). The reunification of divided Cyprus would
unblock this impasse.

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TURKEY’S PAIN POINTS
Turkey’s Pain Points
Rising Unemployment
Integration of Women in the
workforce
Rising Political Risk Index
Human Development Index
Losing out to cost-
competitive India and China
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Details
The most problematic part of the Turkish Economy is the
unemployment. While the official employment statistics announced for
May 2009 show that nonagricultural employment increased by 300
thousand workers and unemployment rate declined from 18.2 to 17.0%,
with seasonal adjustment one can state that actually employment
declined.
Participation levels in the workforce that contracted with global
economic downturn and is expected to pick up and is forecasted to
stand at 56.5% in 2010.
While the share of women participating in the labor force has risen
since the 1980s in countries with a similar starting point, it has fallen
considerably in Turkey – from 34.3 percent in 1988 to 21.6 percent in
2008. By 2006, Turkey had fewer women participating in its economy
than any other country in the OECD or the European and Central
Asian region.
A recent row in Turkey over government-sanctioned wiretappings of
judges and prosecutors has resurrected fears of instability, unsettling
markets and increasing concern among investors. “We are observing
political risk coming on to the agenda in Turkey for the first time in a
long period,” said Fatih Keresteci, an Istanbul-based HSBC economist.
Turkey stands 96th in the published list (UN Human Development
Indicators). Although Turkey has high GDP per capita figure, the life
expectancy at birth, adult literacy ratio and combined enrollment ratio
trails behind other countries of similar GDP per capita figures.
While Turkey entered the global crises with financial sector strength,
significant foreign exchange reserves and manageable budget and debt
problems, and avoided much of the role-back of economic activity from
fall 2008 to summer 2009 several economic developments by the end of
2009 will present serious economic problems and will require policy
changes.
By August 2009, Asia was doing remarkable well based on the
performance of China and India however Turkish goods and services
are significantly getting out marketed.
Punjab Turkey Project

Solutions by Creating Synergies with Punjab

Issues Solutions by Creating Synergies with Details

Punjab
Rising Capitalizing on Punjab’s rich resource From mines and minerals to agricultural
Unemployment base products, Punjab can serve as Turkey’s
massive reserve of raw materials with
Turkey adding to the processing and
finishing to the materials which serves to
boost employment in Turkey
Integration of Women only Health/Education centers Both countries having Muslim majorities, a
Women in the cultural campaign can be launched jointly
workforce for both Pakistan and Turkey to encourage
women to join the workforce based on the
positive effects on society
Rising Political Strengthening Judiciary Pakistan and Turkey can launch Judges
Risk Index tours to each other’s country and
effectively place a committee to arbitrate
multinational or bilateral cases such as the
Bindayir case
Human Vocational Training Exchange Both Pakistan and Turkey fall short of
Development Programs international standards for human
Index development.
Collaboration on vocational training can
scale large numbers in Punjab as well as
augment the areas in Turkey that are weak
such as the use of English as a key
medium of communication. With Turkey’s
plans to elevate its economy through ICT,
it will need a large English speaking
population to interact competitively with
the global IT players.
Losing out to Launching Joint Ventures in Textiles Punjab is among the top 5 in the world’s
cost-competitive cotton yarn production and has one of the
India and China most sophisticated vertically integrated
industries in textile. However with US
tariffs on its cotton, Pakistan has been out
marketed by Indian and Chinese garments.
Turkey can upgrade these plants and leave
much of the labor intensive part of the
project to the cost effective Punjab and
save the value additions of the same
garments in Turkey. This will enable the

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Turkish textile industry to find its cost
effective niche for its Europe export.
TURKEY AND PUNJAB’S TRADE AND INVESTMENT OPPORTUNITIES
SECTORS AREA OF COLLBORATION FOR
PUNJAB
1. AGRICULTURE
Eliminate Create Joint Ventures with Punjab on production
seasonality in of major crops, fruits and vegetables
Agricultural
Export
Transfer of Climate Change has already made agricultural
Irrigation land uncultivable in Punjab and more land will
Technology continue to have this fate unless modern
irrigation technology, particularly drip irrigation
is introduced and institutionalized.
Irrigation increases Gross Domestic Agricultural
Product by 5 times according to Turkey's 2004
data.
Irrigation is also a means of reducing weather
induced production variations.
Pakistan has an identified a potential of 300,000
acres for drip irrigation installations. About half
of this land is in Punjab.
The Pakistan Government offers up to 80%
subsidy to farmers purchasing drip irrigation
systems.
Typically the cost is about USD 1000 per acre
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SECTOR STRENGTHS IN
TURKEY
Agriculture's share of GDP has declined
in Turkey from 35% in 1970 to 22% in
1980 to 7% 2007.
Crops contribute to 67% of Agriculture.
Livestock represents 26% and the rest to
forestry and fishing.
Trade liberalization and demand in
Agriculture and accounted for 6% of
Turkey's agriculture and agro-industrial
export of over USD 10 billion.
Turkey has successfully launched the
GAP project aka Southeastern Anatolian
project of USD 32 billion over 1.82
million hectares supporting a population
of 6.5 million. Not only is this land
irrigated but it also has a high power
generation component.
Turkey is the world most successful
modern irrigation model. Of the 8.5
million hectares of irrigable land in
Turkey; about 5 million is actually
irrigated: 2.8 million hectares is irrigated
by a company called DSI and 1.1 million
hectares by GDRS and the rest by small
private companies.
94% of the total area is irrigated using
surface irrigation methods such as furrow,
border and wild flooding and 6% by
pressure irrigation techniques like
sprinklers and drips. 11,000 hectares
devoted to citrus, vineyards, strawberries
and vegetables is cultivated using drips.
Gravity based irrigation techniques are
much cheaper for farmers.
Punjab Turkey Project
Doubling Reaching Middle East and Asian Markets
Production of through JVs in Punjab for Citrus fruits (Over
Fruits and 40% is lost/wasted in Sargodha citrus cluster),
Vegetables tomato, potatoes, onions, pulses, wheat and rice,
all of which are also major exports for Turkey.
Lahore and Dubai have a 2 hour flight time
which can feed a growing Middle East food crisis
specifically in perishables.
Given the EU quality sophistication that Turkey
has achieved re-entry into EU markets will meet
growing demand in the coming years.
Supplementing Sunflower, corn seed, soybean, corn oil and olive
edible oils oil are both Turkey and Punjab's unique
production agricultural specialties.
Olive grafting facts (wild olives)
Cold Storages, Creating strategic food preservation units will
Pack Houses reduce waste for fruits and vegetables by 40%
and and convert the produce to value added products
Processing increasing Punjab's international marketability.
Units Cold storages for Lahore, Islamabad, Faisalabad,
RY Khan and Multan Airports of total
investment of PKR 575 million.
Cold storages will bring a conversion of 90% of
produce to market specifically in Bhulwal
Pack House for Mango in Multan will make
Punjab among the world's largest mango
producer
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Turkey produces 12 million tons of fruits
and 24 million tons of vegetables
Ecological diversity enables Turkey to
grow all temperate, subtropical and
tropical products.
The similarity in major vegetables, fruits
and pulses suggests that technology
transfer though joint ventures with
Punjab is effective and makes business
sense specifically with regard to mango
pulp, tomato pulp, peeled and diced
tomatoes and citrus juice extraction.
(*Feasibilities available)
Across all fruit production farms in
Punjab, about 40% is wasted. This can be
converted to dried fruit products;
packaged, sorted and dehydrated for
export.
The olive oil market stands at 2.5 billion
US dollars per year, 75% of which is
virgin olive oil.
Turkey is the 3rd largest world exporter
of olive oil.
Punjab was among the top in the world in
soy, sunflower, corn and corn seed oil
production in 1993 but China's growing
subsidized markets brought it to a halt
The capacity of these edible oils can serve
a large local, and Middle East Market
once revived through joint ventures
between Punjab and Turkey
Turkey has an edge in all forms of
infrastructure contracting and has
successfully established numerous
processing units and storages in the
country.
Punjab Turkey Project
Yield Increase Rice and Wheat flour are high exports for both Turkey exports USD 9.1 million worth
through Turkey and Punjab wheat and USD 423 worth wheat flour
technology Punjab can be provided training on high-yield Turkey has a Rocca, Ribe,
farming methods in both as well as high-tech Kransnodarsky-424 kinds of rice
machinery for cultivation of both Punjab exports about 700,000 metric tons
basmati rice per annum out of which
around 350,000 metric tons to Iran and
360,000 metric tons to Dubai.
Given the price caps in Dubai on Pakistan
basmati rice, a JV with a Turkish
company could reenter the world market
by altering the logistical flow Turkey can
re-package and genetically recreate the
new rice variety developed by India called
1121 which has cut Basmati rice's market
by 50%
Organic Establishing Organic Farms in Textile, fruits and The world organic food market was USD
Farming vegetables though corporate farming incentives 46 billion in 2007 proving that Turkey
in Punjab and Punjab both have a vast tract of
agricultural land to tap into this market
though crop rotation, no use of pesticides
and other standards that Turkey is versed
in.
Turkey also can re-export to Europe,
specifically garments made from organic
cotton
Guaranteeing Punjab has an ideal climate for growing hazelnut, Turkey is the world's largest producer in
Supply of fig, apricot, dates and raisins to boost production hazelnut with USD 1,364 million in
Edible Nuts and export for Turkey exports in 2007 and this number has
for export doubled since 2001.
Hazelnut production for Turkey is at 530
thousand tones.
Citrus fruits grossed USD 514 million in
export.
Turkey produces half of the world's fig
production

15   
 
Punjab Turkey Project
SECTORS AREA OF COLLBORATION FOR
PUNJAB
2. LIVESTOCK
Establish a Halal Punjab is among the world's high milk yield
Meat Chain and low-cholesterol meat producing regions.
Punjab can export to Turkey not only the
semen but also the buffalos which Turkey
imports from other countries.
Chohlistan has a livestock farming project
ready for investment
Mozzarella Punjab has over 20 thousand heads of buffalo
Cheese and is ideal for manufacturing of mozzarella
cheese.
Italy however only has a 8000 strong
population and still maintains a 90% share in
the world market of mozzarella cheese.
Leather industry Leather is Punjab's meat market's raw material
and can support the car upholstery , leather
apparel, furniture and shoe market that is
estimated at USD 150 billion at wholesale
prices
Punjab exports for the year 2001 were about
USD 763 million which is hardly 0.5% of total
world trade figure.
16   
SECTOR STRENGTHS IN
TURKEY
Punjab has been unable to tap into the
USD 1 trillion world market even though
it has not only the largest animal
population among Muslim countries but
also a close proximity to Middle East,
India and China, and the Southeast Asian
Market.
According to the Times Magazine, that's
about 16% of the entire global food
industry
Turkey can provide the Halal meat
certification for this purpose and re-
export the produce to Europe's growing
Muslim population
Kraft is the leading producer of cheese in
the world leading with 31% of the market.
Turkey produces traditional cheeses such
as Otlu, Tulum, Urfa as well as high
export White cheese as well as mozzarella
cheese.
Specialized Mozzarella cheese plants can
out-compete Italian cheese in the market
due to low cost of raw material, and
cheap labor combined with high quality
standards ensured by Turkish experts.
The leather industry in total produces
about 18 billion square feet of leather a
year, and the total value of this is
estimated at about USD 40 billion.
Turkey exported USD 1.14 billion in 2006
and in among the world's leading leather
producer with over 7 Leather processing
zones established to promote the industry
and majority of the industry's raw leather
comes from imports.
Turkey exports leather to more than 140
countries Leather exports make up 31%
of all Turkish exports Leather garment
export alone for Turkey fetched USD 300
million.
Punjab can offer high quality buffalo
leather at competitive prices for further
Punjab Turkey Project
Dairy Industry Only 3% of Punjab's milk is processed at
Automation plants and over half of it wasted in transit
The major dairies of the country include
Nestle, Engro, Haleeb, Noon, and Milac.
Nestle is the biggest processing industry of the
sector, collecting over 1,000 tons of milk daily.
In the year 2008 Nestle Pakistan reported
revenue of USD 428 million, a 21% increase
in net sales. Pakistan has been one of the
fastest growth markets for the firm globally
and it is in the process of setting up one of the
largest dairy plants in Asia and plans to
increase its investment by USD371m over the
next five years.
17   
processing in Turkey.
Turkey's milk production is close to 10
million tons per year and looses less than
Punjab to hygiene standards such as
pasteurization. (Less than 50%).
Moreover turkey has cutting edge
technology and training on logistical
advancement to train Punjab farmers.
There is room for Turkish companies to
setup plant in Punjab and export
specifically for European markets
including baby cereals and dry milk
products given this market's cheap labor,
investment incentives and room for
investment
Punjab Turkey Project
SECTORS AREA OF COLLBORATION FOR
PUNJAB
3. MANUFACTURING AND INDUSTRY
Ceramic Industry Punjab's ceramic industry largely supports the
manufacture of Refractory Materials, Sanitary
ware, Tableware, Tiles and Insulators.
Additionally, the Gujranwala cluster provides
availability of cheap labor, availability of raw
materials and availability of natural gas.
According to the Federal Bureau of Statistics,
from 2000-01 to 2004-05 the import of
refractory products increased 5.2 fold, while
sanitary ware increased 4.33 fold, tableware
1.81 fold, tiles 6.69 fold and insulators 2.28
fold.
Glass Industry In Fateh Jhang Punjab a well established glass
industry exists that has recently lost out to
cost-effective China and India despite
abundance of raw material.
However more cost effective technology and
more advanced machinery can revive the
industry for an export ready market via Turkey
to EU
18   
SECTOR STRENGTHS IN
TURKEY
Turkey ranks 5th in the world and 3rd in
the Europe in the production of ceramic
tiles.
The second important group of items is
sanitary ware. Turkey ranks 2nd in
Europe and 4th in the world in the
production of ceramic sanitary ware, as
well.
Exports of the ceramic industry have
been increasing steadily. In 2007 exports
totaled to USD 823 million.
Approximately 58 % of the exports are
directed to the EU countries. The major
export destinations were the UK,
Germany, France, Israel, the USA,
Greece, Canada, Azerbaijan and Italy.
Substantial improvements were achieved
in the 17th and 18th centuries during the
Ottoman Empire.
At present, “Turkey Sis eve Cam Fab.
A.S.” is a group of companies in the
sector which accounts for approximately
90% of annual production with its 26
manufacturing establishments and 10
marketing and financial companies.
“Size Cam” group ranks 10th amongst the
top 25 glass firms in the world.
Glass industry exports, which increase
continuously and totaled to USD 828
million in 2007. Approximately 54% of
the exports are directed to the EU
countries.
Glass household articles constituted the
main part of the exports. Glass fiber and
glass wool together ranked the second
and safety glass ranked the third in the
total exports in 2007. The major export
destinations were Germany, the UK, Italy,
Romania, Iran, France, the USA, the
Russian Federation, Spain and Greece.
Punjab Turkey Project
Furniture Punjab grows the finest wood ideal for
furniture manufacturing and also has industrial
clusters for such around Chiniot.
Particularly known for extravagance and class,
this region is best known in the world for its
exotic carved furniture. The artisans of the city
have perfected the art of wood carving.
The export of wooden furniture from Punjab
has jumped by 130% during the last five years
since 2009. In 1997 the Punjab furniture
industry was approximately USD 4.34 million
in 2000-2001.
Carpets In 2009 Punjab's export in carpets stood at
approximately USD 171.23 million although
recently exports have fallen by 15%. In terms
of quantity, Punjab exported approximately 2
million square meters of carpets, rugs and
mats. Pakistan exports carpets to countries
such as the USA, Germany, Italy, the UK,
France, UAE, etc.
With technology transfer and JVs Turkey can
reinvigorate the slowdown in industry and
enable Punjab's unique patterns to enter
European markets.
According to the Pakistan Carpet
Manufacturers and Exporters Association
(PCMEA, 2003), there are 150,000-200,000
looms in the country. The number of weavers
is estimated at around 200,000-250,000.
Pakistan earns USD 300 million in foreign
exchange annually and more than 99% of
carpets made in the country are exported.
19   
Furniture exports have had an
outstanding performance in recent years,
increasing from USD 105.3 million in
1998 to roughly USD 1026 million by
2007. This is mainly due to improvements
in quality and design.
Main export products were: wooden
furniture, seats for motor vehicles, seats
convertible into beds, wooden bedroom
furniture and metal office furniture. In
2006, Turkey ranked fourth in the world
exports of seats convertible into beds
which are traditional items, showing the
large family, hospitality and past nomadic
characteristics of our nation.
In 2007, Turkey exported furniture to 160
countries throughout the world. The main
markets were Germany, Iraq, France,
Iran, Greece and the Netherlands. In the
last five years, Turkish furniture
companies have been establishing
showrooms and depots in increasing
numbers in most of these countries.
There are six leading carpet suppliers in
the world market: Iran, Pakistan, India,
China, Nepal and Turkey. Iranian and
Pakistani handmade carpets dominate the
U.S. market. The German market for silk
carpets is dominated by India and China.
The southeast Asian market is dominated
by China and Pakistan.
The total value of hand-made carpets and
kalins exported by Turkey in 2007 was
about USD 141 million. Turkey’s total
machine-made carpet capacity is over 190
billion square meters. The total value of
machine-made carpets exported in 2007
was over USD 850 million. Major export
markets are Saudi Arabia, Kazakhstan,
Ukraine, Germany and Poland.
Punjab Turkey Project
SECTORS AREA OF COLLBORATION FOR
PUNJAB
4. MINING
Marble and Through licensing agreements Turkey and
Granite Punjab can establish the region’s best marble
processing units.
According to the Geological Survey of
Pakistan, reserves of green marble (onyx) in the
Chagai district are in abundant quantities and
can be exported to the US after Turkish
manufacturing techniques are applied.
Iron Ore Punjab has more iron ore reserves than the
world's annual production.
Punjab has an estimated 1.1 billion metric tons
of Iron Ore reserves under alluvial deposits.
In best places, seam thickness ranges from 70-
178 meters.
Krupps did a detailed study and designed
model on how to convert Iron to steel. 36% of
Iron can be extracted from 5 resources found
in layers of Water, Coal, Magnesium, Dolomite,
Iron Ore
Limestone Limestone based cement, construction and
chemical units to produce: fluxes, glass raw
materials, refractoriness, fillers and abrasive soil
conditioning, as an ingredient in a host of
chemical process.
Punjab Coal Mining Company can deliver
requisite quantities at mine mouth or further
down.
Typical project: 5000 million tons cement plant
20   
SECTOR STRENGTHS IN
TURKEY
Turkey has 40% of the world's marble
share and the cutting edge technology
(non-blast) for polishing which can be
introduced for Punjab.
Block marble export is USD 302 million.
Turkey can produce 11,800 cubic meters
of marble annually for export amounting
to USD 1,835,500 in value, a 1000 cubic
meters of which can be onyx marble.
Turkey had iron ore production of 3.7
million tons in 2003 compared to 4
million tons in 2002.
The development of the iron and steel
industry more than 70 years ago has been
the basis of the country’s
industrialization effort. The first iron and
steel factory was built for military
purposes in 1928. The first integrated
iron and steel plant, Karabuk Iron and
Steel Works (Kardemir), was built in the
Zonguldak region in 1937. Eregli Iron
and Steel Works, built in 1961 with a 2.8
million tons/year capacity, is the main
flat-rolled steel producer.
The third biggest integrated producer is
Iskenderun Iron and Steel Works
(Isdemir) with a capacity of 1.6 million
tons/year.
The first electric arc furnace began
operating in 1960 and in the following 20
years a number of private sector iron and
steel plants were developed. Turkey relies
on imports of iron-ore concentrates.
Limestone production in Turkey has
gone down by a significant percentage to
30.3 million tons in 2009 down from
52.4 million tons in 1998. Turkey can
supplement its limestone by importing
from Punjab
Punjab Turkey Project
mode of investment: in JV with Government
of Punjab

Rock Salt World’s largest deposit exists in Punjab. Punjab
government envisions a rock Salt based
chemical complex of soda ash, caustic soda,
sodium sulphate, hydrochloric acid.
ICI UK has the oldest plant in Punjab and 2
additional plants since then.
Local units only able to meet 35% of domestic
demand for soda ash of 1.5 million metric tons.
Estimated investment range to about 100,000
metric tons per annum.
A soda ash plant in Punjab requires an average
investment of USD 30 million.
The detergent industry in Punjab has a huge
potential for growth. The industry's value of
production was over USD 69 million back in
2001.
One company in particular (Unilever: Surf
Excel) has shown a growth rate of over 63%
over the past year.
The Pakistan detergent industry has
consistently shown double figure growth rates
due to lowering of Import duties on the raw
materials.
Turkey’s soda ash is primarily used in
glass container manufacturing, fiberglass,
specialty glass, flat glass, powdered
detergents, medicines, photographic
processes, cleaning and boiler
compounds, pH control of water and as
a food additive.
The particular value addition through
cutting edge technology that Turkey can
provide in Punjab's detergent industry is
significant because of a large cost
effective manufacturing base, local
manufacturing expertise, experienced,
efficient and cost effective labor force,
superior product quality and an
advantageous geographic location

21   
 
Punjab Turkey Project
SECTORS AREA OF COLLBORATION FOR
PUNJAB
5. POWER AND ENERGY
Hydro Power Power shortage in Punjab is around 1500 MW.
Installed capacity is around 20,000MW and
dependable available capacity is just over
17,500 MW while demand increasing at 7 –
8% per annum. This forecasts the present
shortage 3000-4000 MW and an indicative
demand by 2030 of 100,000 MW.
Two 50MW solar thermal power projects at
Head Muhammad Wala Muzaffargarh and
New Industries Estate Bahawalpur are in
development.
Punjab is ready for investment in two 200MW
coal based power projects at Khushab and
DG Khan
Coal Based 2 coal based power plants of 200 MW in joint
Power plant venture with the Punjab Government
Mouth of the mine exists in Khushab on canal
Coal supply from Chamalan in DG Khan,
Baluchistan assured by PMDC.
Total capitalization: USD 350 million with a
probable equity requirement of 25% with the
Punjab government equity of up to 25% in the
project.
22   
SECTOR STRENGTHS IN
TURKEY
The gross electricity production in Turkey
reached 191,237 GWh in 2007.
Thermal energy is the source of 81% of
production; hydroelectric energy makes
18.7% of it. Coal, lignite and imported
coal accounted for 27.9% fuel oil 4 % and
natural gas 48.5% of thermal electricity
production.
The installed electricity capacity of Turkey
increased by 1% and reached about
40777.3 MWh in 2007. Electricity
consumption in Turkey reached to 2685
KWh/person in 2007.
The GAP project is one of the largest of
its kind in the world and includes the
irrigation of 1.82 million hectares of land
and power generation capacity of 27
billion kilowatt hours and an installed
capacity of 7500 MWs.
The plans call for the construction of 22
dams, including the Atatürk Dam, with
the sixth largest volume in the world; 19
hydropower plants; the Sanliurfa irrigation
tunnel system, the largest of its kind; the
extensive irrigation networks and canal
systems.
Turkey's domestic energy consumption
has more than tripled, reaching a level of
3.2 quadrillion Btu (quads) and coal
accounted for 31% of total energy
consumption in year 2000. Turkey's coal
reserves are 0.6% of the world reserves.
Rich lignite deposits are spread all over
the country. Total lignite reserves are
estimated at 8075 million tons, of which
7339 million tons (88%) are economically
feasible.
Lignite extraction is expected to increase
as the government feels pressure to close
down unprofitable hard coal mines that
are geologically difficult, increasing the
cost of extraction.
Punjab Turkey Project
Micro Hydel World’s largest irrigation canal network is in
Technology Punjab with “Run of river” micro hydel power
plants generating power of up to 10 MW
Water in Punjab runs 11 months which makes
Micro Hydel a dependable setup. The usual
mode of business is on Build-Own-Operate -
Transfer with a concession period of 50 years.
Punjab has identified 15 sites close to the load
center with a power capacity between 2-7
MW.
Small hydro is particularly attractive to
investors, as it does not require extensive
infrastructure, it can serve remote areas that
are not connected to the grid, it has less of an
environmental impact than large hydro
projects, and, perhaps most importantly in the
current credit climate, it is not capital
intensive.
Wind Power In Pakistan wind energy potential is about 0.
346 million MW and the government has
targets of at least 5% of total installed capacity
through renewable energy resources by 2030
(i.e. 9700 MW).
Wind energy is the fastest growing energy
resource with an annual growth of 26 percent.
Zorlu Energy Group, a leading Turkish firm
has launched a project to develop 50
megawatts on a build own operate (BOO)
basis in Sindh. The Alternative Energy
Development Board has a target of increasing
this number to 250 MW.
In Punjab a 40kW Micro Wind Turbine
Demonstration Unit at Kallar Kahar, district
Chakwal is set up 160 turbines of 600kW each;
thereby setting up a wind farm of 100MW
power generation capacity on successful
demonstration of this unit.
23   
The key development came in 2005 with
the passing of Renewable Energy Law
5346. This aimed to encourage investment
in renewable technologies by guaranteeing
projects a seven-year (updated to 10 years
by Energy Productivity Law 5627) feed-in
tariff of 5.5 eurocents, a 99% discount on
the license fee, and a free annual license
fee for the first eight years following
completion.
Renewable projects were also offered an
85% discount on the purchase of
government land and priority connection
to the transmission grid.
An important distinction for investors
was that the law defines river or canal
based projects of less than 50 MW;
reservoir volume of less than 100 million
square meters surface or an area of less
than 15 square km as a renewable project
but larger hydropower projects were not
eligible for the benefits offered by the law.
Hydropower plant operator Bilgin
Elektrik developed the first 100% free
market wind energy plant in 2006. The
20-turbine, 30MW Bares II plant based in
Bandirma proved to the Turkish business
community that wind farms could
generate both electricity and profits.
The technology that responded most
markedly to this new legislation was wind
power. Turkey’s first commercial wind
energy power plant, the 12-turbine, 7.2-
MW Ares Wind Farm near Izmir, was
built in 1998. Seven years later, two more
significant plants had been built with an
installed wind capacity of 20 MW by
2006.
In 2007 eight more wind farms came
online, boosting wind capacity by 736%
to 140 MW.
In the same year a government tender for
wind farm projects attracted 751 bids
worth a total of 78,000 MW, according to
EMRA. Today, the International Wind
Energy Association notes the total
installed wind capacity is 433 MW, and
Punjab Turkey Project
Solar energy Solar Energy is available at a rate of 1000
watts per square meter in Punjab. This can be
converted to DC electricity with the help of
Solar Photovoltaic cells.
Every day, the country receives an average of
about 19 Mega Joules per square meter of
solar energy.
Silicon deposits in the Mainsail region are pure
98% and as such an excellent raw material for
the manufacture of silicon ingots/ bricks
which are in turn used to manufacture solar
panels.
In this way an opportunity for a silicon
manufacturing plant exists in Mianwali entails
a strategic investment approx USD 500
million outlay with an adjunct downstream
industry.
24   
3,328 MW more are scheduled to be
constructed by 2010.
Zorlu Energy Group has recently received
55 million in IFC financing for the
development of the country’s largest wind
farm, a 135 mega watt project at
Osmaniye.
It comes at a time when Turkey is
launching a major program of increased
wind power to be carried out over the
next decade. By supporting these kinds
of industry leaders and exploring other
innovative responses through the World
Bank Group’s USD 5.2 billion Clean
technology Fund, Turkish Firms can find
new solutions.
The main solar energy utilization in
Turkey is the flat plate collectors in the
domestic hot water systems. Turkey is one
of the leading countries in the world with
a total installed capacity of 8.2 million
square meters collection area in 2001.
Total energy production equals to 290,000
TOE (ton oil equivalent).
The industry is well developed with high
quality manufacturing and export
capacity. The number of companies is
around 100 and annual manufacturing
capacity is 750,000 m².
Punjab Turkey Project
SECTORS AREA OF COLLBORATION FOR
PUNJAB
6. TRANSPORTATION AND CONSTRUCTION
Transportation With a growing population of 92 million
people who are on an urban sprawl migration
path, transportation is a crisis that if left
unsolved will be a social disaster.
Punjab needs a mass transportation system for
the cities and a climate control transportation
solution to absorb the movement of
populations across the rural-urban patterns
Construction Construction is one of the more vigorous
sectors of the economy, growing at an average
rate of about 6.5% since 1999. Construction
of houses which proposed the provision of an
annual demand of 667,500 housing units in
Punjab and a total housing backlog of 4.75
million housing units.
The housing plan also seeks to provide a rural
water supply to an additional 31.2 million
people and sanitation facilities for 17 million
people.
Currently there are three major highways to be
built in Punjab. First the 6 lane Kharian –
Sialkot - Lahore Motorway of Length: 155
25   
SECTOR STRENGTHS IN
TURKEY
The highway length has reached 63889
kilometers of which 1987 are motorways.
95% of passenger transport and 92% of
the transport of goods is realized by the
road transport. The number of coaches in
domestic transportation reached at 24680
whereas this number is 1921 for
international transportation. The length
of railways is 10991 km of which 2274 are
currently electrified. With the projects
which are underway at preset and with
those to be pursued in the coming years
(2009-2014), the length of electrified
main-lines will increase from 2274 km to
2686 km.
In terms of its rolling stock fleet, Turkish
State Railways (TCDD) has 522 diesel
mainline, 63 diesel shunting, 67 electric
locomotives, 83 electric railcars, 44 diesel
railcars 16320 freight cars and 993
passenger coaches. The total number of
passengers of this sector reached 81
million and 21 million tons of cargo
transported in 2007.
Turkey has 8333 kilometers of coastline,
15 principle state owned ports, around 50
municipal wharves, some 60 special
purpose wharves and quays.
With 22 companies among the top 225
contracting companies, Turkey ranked
third
in the world after the United States and
China in 2007. In the period of 1972-
2007 about 700 Turkish contractors have
completed over 4300 projects in 69
countries. The total value of the projects
undertaken by Turkish contractors abroad
reached USD 105 billion in the same
period.
For the year 2007, Turkish contractors
had undertaken 354 projects in abroad.
The total value of these projects was USD
Punjab Turkey Project
Km with provision of adding 2 additional
lanes and second is the 4 lane M-2 Link of 8.2
km and lastly the 4 lane Daska by-pass: 11.85
km (04 Lanes) as well as 10 Interchanges
26   
19.4 billion. Major markets for Turkish
contractors abroad were mainly Libya
(25.2%) the Russian Federation (18.4%),
Qatar (9.7%), Turkmenistan (8.1%) and
Kazakhstan (5.5%).
In 2007, the mainly fields of activity for
Turkish contractors abroad have been
building construction (44.3%),
transportation (25.9%), industry (13.2%),
water works (10.5%), and infrastructure
(6%)
Punjab Turkey Project

SECTORS AREA OF COLLBORATION FOR SECTOR STRENGTHS IN

PUNJAB
7. EDUCATION
Higher Punjab has a deepening middle class and a
Education large population base that is both fluent and
well versed in English. This edge over
Turkey's highly educated graduates can work
to synergize collaboration on higher
education. This is specifically important for
management universities like LUMS where
communication skills have English as the main
medium for instruction. Similarly NUML can
be the strategic student exchange destination
for Turkish students with reciprocal
admissions.
Primary/ Pak-Turk Schools run by International
Vocational Cag Educational Foundation (Pak-Turk ICEF)
Education since 1999 in 7 cities of Pakistan: Islamabad,
Lahore, Karachi, Khairpur, Multan, Peshawar
and Quetta.
Punjab has a need for the following vocational
training on bio medical engineering
technologies, glass ceramics, tile works, and
tourism and hotel management by sending
instructors to learn the training courses and
then teach students here in Punjab.
TURKEY
Turkey has higher education institutions
specializing in technology that is
specifically useful to Punjab including
lasers, biological sciences, physics,
chemistry, electronics, mechatronics,
medical sciences, chemical engineering,
industrial engineering, nano-mechanics,
nano-semiconductors and nano-sensing
devices.
Turkey has an edge in sectors ranging
from standards of curriculum,
modernization of equipment, training
trainers and managers and accreditation
of programs and institutions.

27   
 
Punjab Turkey Project

SECTORS AREA OF COLLBORATION FOR SECTOR STRENGTHS IN

PUNJAB TURKEY
8. TOURISM
Repackaging Linking Lahore and Istanbul by extending The number of foreign tourists was 16.9
Turkey's tourism packages from Turkey to Pakistan. million in 2006 and tourism revenues
Ottoman This makes synergistic sense because accounted for USD 16.9 billion.
destinations with historically Suleiman the Magnificent and Compared on the basis of tourism
extensions of the Akbar the Great were contemporaries. revenues, Turkey ranked 9th among the
Mughal heritage Suleiman built the Citadel in Istanbul and top 40 tourism countries in 2006. In 2007
sites Akbar built it in Lahore the number of foreign tourists reached
23.3 million and tourism revenues reached
USD 18.5 billion, realizing an increase of
17.7% and 11.9% respectively, compared
to the same period of the previous year. 5
major markets for Turkish tourism sector
are Germany, the Russian Federation,
United Kingdom, Bulgaria and Iran,
accounting for 47.11% of total tourist in
2006 and 46.39% in 2007. Trade and
tourism potential for Turkey has its trade
volume from USD 3 billion and climbed
to USD 15 billion last year. The figure is
expected to rise to USD 30 billion by
2011 and to USD 50 billion in 2015.

28   
 
Punjab Turkey Project

Annexure 1

PROSPECTIVE PUNJAB TURKEY PROJECT LIST

Sector Project Location Details

Mines and Coal Based Power Salt Range Joint venture of USD 350 million
Minerals Generation Plant(s) Punjab over 2-3 years. In the Salt Range,
Punjab, located only 130 miles north
of Lahore, 235 million metric tons
of coal reserves are anticipated and
out of these reserves 79 million
metric tons have actually been
proved.
Mines and Coal Based Power Dear Ghazi Joint venture of USD 350 million
Minerals Generation Plant Khan District, over 2-3 years. Up a 200 MW power
Punjab plant in D.G. Khan on additional
supply of coal from Chamalang
(Baluchistan).
The Government of Punjab has
worked out additional supply of 1
million tons coal from Chamalang,
District Lora lie, Baluchistan to
D.G. Khan. Punjab Coal Mining
Company (PCMC), registered with
SECP has been established to ensure
supply of coal on sustainable basis at
Dera Ghazi Khan to the power
plant investor.
Agriculture Fruit and Vegetable Lahore, Sunder USD 1.2 million projects over 1
Dehydration Plant Industrial year. Pakistan produces over 3.5
Estate million tons of vegetables every year.
To develop and operate an
economically viable dehydration
plant of vegetables and fruits with an
installed processing capacity of 2000
tons per day with an initial product
mix of potatoes, onions and garlic.
Agriculture Livestock Production Cholistan USD 0.75 million over 1 year. 50%
Farm, Cholistan Punjab of beef produced in Punjab is from
Cholistan and this project will boost
beef and milk production further.
Livestock farm consisting of 500
acres. A manageable yet viable size
of the farm is of 250 breeding

29   
 
Punjab Turkey Project
animals, for production of milk and
meat

Agriculture Integrated Cold Chain Various USD 0.12 million over 1-3 years.
System locations in There is an estimated loss of 35% in
Punjab horticulture products at post harvest
including stage due to absence of an integrated
Sargodha and cold chain system. The country
Multan needs to increase and maintain its
cold storage capacity from current
6.37% to around 15% of
production.
Power and Hydel Raw Sites 15 sites in Build-Own-Operate-Transfer
Irrigation Punjab on investment for projects up to 50MW
Canal capacity. Abolition of 5% limit on
investment of equity in associated
undertakings

30   
 
Punjab Turkey Project

Annexure 2

SUGGESTED AREAS OF COLLABORATION FROM LINE

DEPARTMENTS
1 Ministry of Health • Turkey has introduced a PPP model where private hospitals can benefit
through Universal Health Insurance for patients recently introduced by
the Govt. while capping their rates and dedicating the hospital to
general public use only. The volumes guarantee returns to the private
hospitals
• Turkey is benefitting greatly from medical tourism from Europe
2 Minister of Interior • Anti terrorism and police equipment/training
3 Minister of • Turkey has a very advanced system of pressurized drip irrigation, which
Agriculture & has been successfully used by Mr. Tareen at his farms in Punjab, and
Livestock can contribute positively both towards agricultural yields and water
conservation
• Turkish companies are supplying substantial amount of produce to
Europe and JV’s with Turkish firms would provide our companies with
access to European markets through existing supply chains
4 Mayors of Ankara & • Both cities are running successful services:
Istanbul o mass transit systems
o solid waste management
o slaughter houses
5 Minister of • Punjab has a large surplus of rice which we are seeking to export
Commerce • Key meeting to increase commerce and trade especially in the sectors
identified in Attachment 2
6 Minister of • Proposed Rumi chair of learning at a Punjab University
Education • Increase of student exchange
• Increase the number of Pak-Turk schools in Punjab
7 Minister of Culture • Turkey is a brotherly Muslim country which has long standing
relationship with Pakistan and there is substantial goodwill for each
other
8 Minister of Energy • To help promote investments and JV’s in Punjab
• Zorlu Energy, a Turkish Energy Co., started to invest up to USD80m in
wind power in Sind. PBIT is in the process of attracting them to
Punjab but the lack of sovereign backed wind data makes the effort
challenging

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Punjab Turkey Project

List of References

GDP Data source: World Bank, World Development Indicators 2009

http://www.economcom/displaystory.cfm?story_id=14753776

http://www.forbes.com/2009/09/21/turkey-imf-negotiations-business-oxford.html

http://www.atlantic-
community.org/index/articles/view/The_US_needs_Turkey_for_its_Middle_East_Agenda

Istanbul 2009, IMF World Bank Summit

Turning Globalization into Opportunity, the Case of Turkey (2009)

Political Structure of Turkey 2009

CERCEVE, Economic Cooperation among Islamic Countries 2008

The Report, Turkey 2009 by DEiK

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