Sample Solution

ivate Investment
In 1993, the Turkish highway construction company STFA was awarded the contract by the Government of Pakistan. The Turkish private sector needed successfully qualified to execute part of the prestigious Indus Highway project. At that time the second major private Turkish investment company was STFA (Sezai T??rke Fevzi Akkaya) construction company, with a total capital commitment of $597 million. Through 1998 five projects were accomplished, counting the $138 million Jinnah Naval Complex, the $100 million Lahore Bypass Project, the $42 million Indus Highway Project, the $6 million Ormara Water Supply Project and the $5 million Ormara Submarine Rebuild Project (Ahmad, 2000).
On March 1993, the contract for the construction of the Islamabad-Peshawar section of the Pakistan Motorway was awarded to Messieurs Byinder Holding Construction of Turkey. The total length of Islamabad-Peshawar Motorway was noted 189 km. Total estimate of that project was targeted to be at Rs.16.5 million which would be completed on partial financing basis with 60% GOP funding, 40% as a loan back by the government of the Turkey (Ahmad, 2000).
In October 1994, a joint venture agreement was signed between Tutan Bank which belongs to Yasar group (Turkey) which was one of the largest business houses of Turkey and the Fidelity Investment bank of Pakistan to set up a Universal Trading Bank with headquarter at Lahore. It would have approved capital of 500 million rupees of which 100 million rupees would be subscribed by the Turkish side.
In March 1995, both countries signed two accords for the endorsement and safeguard of investment and agricultural cooperation, the first agreement would protect each other’s investment in respective countries, while the second aimed at promoting scientific, technical, and economic cooperation in the agricultural fields (Hasan, 2002).
Economic relations with Turkey came under strain, when Pakistan cancelled the Islamabad-Peshawar Motorway project, which was awarded to a Turkish firm. Compensation to the Turkish firm was discussed between the Turkish Prime Minister Demirel and Pakistani Prime Minister Benazir Bhutto during third ECO summit in Islamabad. (Ahmad, 2000)
In March 1995, a Turkish company won the bid for construction of the Ghazi Brotha Dam. Turk sicmen has won the contract for the supply of $30 million worth of cables to Pakistan Telecommunicati