Pakistan and Kyrgyzstan have agreed to significantly increase bilateral trade over the next two years.
The two countries aim to raise annual trade from around $16 million to $200 million. The agreement is expected to strengthen economic relations between both countries.
The agreement was signed in Bishkek on Wednesday. Prime Minister Shehbaz Sharif and Kyrgyz President Sadyr Zhaparov attended the signing ceremony.
Prime Minister Shehbaz said he preferred an agreement over a memorandum of understanding. He said this would make the $200 million target a clear commitment.
The two countries will develop a practical plan to achieve the trade target. The plan will focus on improving trade procedures and business cooperation.
It will also encourage joint investments and industrial projects. Both sides want to increase direct interaction between businesses.
The prime minister said the existing trade volume was far below its potential. He linked stronger economic cooperation with closer relations between the two countries.
Kyrgyzstan has expressed interest in cooperation across several important sectors. These include pharmaceuticals, agriculture, energy and light industries.
Tourism and the digital economy are also part of the planned cooperation. The two countries also discussed opportunities related to virtual assets.
Connectivity remains a major part of the new economic partnership. Pakistan and Kyrgyzstan signed a transit trade agreement to support this goal.
The agreement is designed to improve the movement of goods between the two countries. It also aims to strengthen trade links between South and Central Asia.
Both sides agreed to simplify transport and customs procedures. They also want to reduce administrative barriers affecting cross-border trade.
Kyrgyz President Zhaparov highlighted the importance of Pakistan’s seaports. He said they could provide Kyrgyzstan access to South Asian markets.
The countries also agreed to increase the use of multimodal transport. Pakistan’s ports could provide additional options for Kyrgyz trade and transit.
Investment and industrial development will also receive greater attention. The two sides identified mining, agriculture and food production as key areas.
Textiles, pharmaceuticals and halal products are also included in the cooperation plans. Digital technologies will also receive greater focus.
The joint statement encouraged joint ventures and local production. It also highlighted the importance of technology transfers between businesses.
The two countries separately signed a memorandum on virtual assets. The initiative aims to support cooperation between their financial markets.
Officials said it could encourage cross-border investment and technological development. They also emphasized the need for a secure and transparent digital asset environment.
Another area of interest is Kyrgyzstan’s Tamchy Special Financial Investment Territory. Both sides discussed connecting the platform with Pakistani financial institutions.
The proposed cooperation could involve banks, investment funds and businesses. It may support joint investment projects and new financial solutions.
Energy cooperation was also discussed during the visit. Both countries reaffirmed their commitment to the CASA 1000 project.
They agreed to establish a joint working group for energy cooperation. The group will cover electricity, hydropower and renewable energy.
Energy infrastructure and modern technologies will also be included in its work.
Overall, 17 bilateral documents were signed during Prime Minister Shehbaz’s visit. The documents cover several areas of cooperation.
These include transit trade, education, medical education and climate change. Security, extradition, postal services and e-commerce are also covered.
Business cooperation and virtual assets are among the other areas included. The countries also agreed to establish sister-city ties between Lahore and Osh.
The latest agreements provide Pakistan with opportunities to expand its economic links with Central Asia. They also create new prospects for trade and investment.
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For Pakistan, stronger connectivity with Kyrgyzstan could support access to wider regional markets. The $200 million trade target will now require practical implementation by both sides.
