The story of Direct Foreign Investment in Pakistan and Turkish companies in Punjab

    Lahore, Pakistan: One can find a number of news in Pakistani media in which you can read that Prime Minister of Pakistan Imran Khan has a vision of enhancing Direct Foreign Investment (DFI) in Pakistan.

    PM Imran Khan is firm that Pakistan is one of the best destinations in the world for foreign investment. He has directed Pakistani missions abroad to pitch Pakistan as the best destination for Investment in the region.

    When things come on the ground between Pakistan and Turkey then the situation is usually otherwise

    You can also find news in which you will read that Prime Minister Imran Khan is impressed by the Turkish Model of development and he always appreciates Turkish President Recep Tayyip Erdoğan for his firm position for Muslim Ummah and his support for Kashmir.

    However, when things come on the ground between Pakistan and Turkey then the situation is usually otherwise.

    Now there is one more news that you will not find in Pakistani media but Turkish Media including its State-Run News Agency Anadolu Agency reported that how did Pakistani police raid the garages of two Turkish companies in Lahore early Monday (December 21, 2020).

    The employees of Turkish companies told Anadolu Agency (AA) that the riot police raided the six facilities used as garages by Albayrak and Özpak Group companies, which provide cleaning services, at around 2:30 a.m. local time.

     


    Turkish media reported that the police forced the employees and their chiefs out to the streets during the raid and Police allegedly assaulted some employees in the brawl and did not allow the Turkish staff to take any of their belongings.

    Direct Foreign Investment in Pakistan has always been a problem at the ground level although Pakistan always seeks it

    Özpak’s CEO Nizamettin Kocameşe and Albayrak’s Project Coordinator Çağrı Özel said Lahore Waste Management Company’s (LWMC) officials, together with the Lahore police, raided the garages of the companies, the four belonging to Özpak and the two to Albayrak. Turkish company officials stated that they invested approximately $150 million since 2012.

    Direct Foreign Investment in Pakistan has always been a problem at the ground level although Pakistan always seeks it.

    We still remember that one Turkish firm Karkey Karadeniz invested in Pakistan and then went to the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank and won the case against Pakistan for its breaches of the bilateral investment treaty and the unlawful expropriation of various rights and assets of Karkey.

    Karkey contested its case and ICSID tribunal confirmed that Pakistan violated its obligations under the Turkish-Pakistan bilateral investment treaty by expropriating Karkey’s investments as well as restricting the company’s right to the free transfer of its investment. Karkey Karadeniz claimed that it had secured an $800 million compensation award against Pakistan.

    This matter according to the media reports was taken at the Presidential level in Turkey by the Prime Minister of Pakistan Imran Khan and the Turkish President in a goodwill gesture played his role to help Pakistan out of this situation.

    Now Pakistan and Turkey are facing another unpleasant situation and this time it is in the province of Punjab.

    Do such events help for the better bilateral relationship between Turkey and Pakistan or can harm friendly and warm interaction between Prime Minister of Pakistan Imran Khan and President Recep Tayyip Erdoğan?

    The best answer can come from the Foreign Office of Pakistan.