Pakistan and Kyrgyzstan have agreed to increase bilateral trade from around $16 million to $200 million annually within the next two years, sources told RBN.
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 insisted on a formal agreement rather than a memorandum of understanding so that the $200 million target becomes a concrete commitment.
The two countries will develop a practical plan to boost trade, improve trading procedures, encourage joint investments and launch industrial projects. They will also work to increase direct links between businesses.
The prime minister said the current trade volume of around $16 million was much lower than the potential of economic relations between the two countries.
Kyrgyzstan has expressed interest in joint projects in pharmaceuticals, agriculture, energy, light industry, tourism, digital economy and virtual assets.
Connectivity is another major part of the agreement. Pakistan and Kyrgyzstan signed a transit trade agreement to make the movement of goods easier and strengthen trade links between South and Central Asia.
The countries will also work on simplifying transport, customs and administrative procedures and increasing freight movement.
Zhaparov said Pakistan’s seaports could give Kyrgyzstan an important route to South Asian markets and international trade. Both sides agreed to increase the use of multimodal transport and Pakistani ports.
The new partnership will also focus on mining, agriculture, food, textiles, pharmaceuticals, halal products and digital technologies. The two sides want to promote joint ventures, local manufacturing and technology transfers.
Pakistan and Kyrgyzstan also signed a memorandum on virtual assets. The agreement is aimed at developing cooperation between their financial markets and supporting cross-border investment and digital innovation.
The countries also showed interest in connecting Kyrgyzstan’s Tamchy Special Financial Investment Territory with Pakistani banks, investment funds, financial institutions and businesses.
This could help create joint investment projects, financial products and digital solutions.
Energy cooperation will also be expanded, including work on the CASA-1000 project. A joint working group will focus on electricity, hydropower, renewable energy, energy infrastructure and modern technologies.
A total of 17 bilateral documents were signed during Shehbaz Sharif’s visit. They cover transit trade, virtual assets, medical education, education, climate change, security, extradition, postal services, e-commerce and business cooperation.
Pakistan and Kyrgyzstan also agreed to establish sister-city relations between Lahore and Osh.
