Pakistan and Kyrgyzstan have signed an agreement to increase bilateral trade from around $16 million currently to $200 million a year within the next two years, giving fresh momentum to economic ties between the two countries.
The agreement was signed in Bishkek on Wednesday in the presence of Prime Minister Shehbaz Sharif and Kyrgyz President Sadyr Zhaparov. Shehbaz said he had pushed for an agreement instead of a memorandum of understanding to make the $200 million trade target a concrete commitment.
The prime minister said the two countries would prepare a practical plan to expand trade, improve trading mechanisms, promote joint investment and industrial projects and increase direct contacts between businesses. He described the current trade volume of around $16 million as far below the level warranted by the strength of bilateral relations.
The two leaders agreed that economic cooperation should move toward a more practical and results focused stage. Kyrgyzstan said it was ready to pursue joint projects in pharmaceuticals, agriculture, energy, light industry, tourism, the digital economy and virtual assets.
A major focus of the agreement is connectivity. The two sides signed a transit trade agreement aimed at facilitating the movement of goods, improving logistics and creating stronger trade links between South and Central Asia. They also agreed to simplify transport, customs and administrative procedures and increase freight movement between the two countries.
Kyrgyz President Zhaparov said Pakistan’s seaports could provide Kyrgyzstan with an important route to South Asian markets and wider international trade. The two sides also agreed to make greater use of multimodal transport and Pakistan’s ports to expand Kyrgyzstan’s trade and transit options.
Investment and industrial cooperation are also expected to become major parts of the new economic partnership. The joint statement called for greater cooperation in mining and processing, agriculture, food, textiles, light industries, pharmaceuticals, halal products and digital technologies, with an emphasis on joint ventures, local production and technology transfers.
The two countries also signed a memorandum on virtual assets, which they said could support cooperation between their financial markets, create a secure and transparent digital asset ecosystem and encourage cross border investment and technological innovation.
Another potentially significant development is cooperation involving Kyrgyzstan’s Tamchy Special Financial Investment Territory.
The two sides expressed interest in linking the platform with Pakistani banks, investment funds, financial institutions and businesses to develop joint investment projects, financial instruments and digital solutions.
The leaders also reaffirmed cooperation in energy, including the timely implementation of the CASA 1000 project and the establishment of a joint working group covering electricity, hydropower, renewable energy, energy infrastructure and modern technologies.
In total, 17 bilateral documents were signed during Prime Minister Shehbaz’s visit, covering areas including transit trade, virtual assets, medical education, education, climate change, security, extradition, postal services, e-commerce and business cooperation. The two countries also agreed to establish sister city ties between Lahore and Osh.
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