Pakistan, Kyrgyzstan agree to pursue $200m trade target within two years

BISHKEK, Sept. 2, 2026: Pakistan and Kyrgyzstan agreed to achieve a $200 million annual bilateral trade target within the next two years, while signing a transit-trade agreement and committing to measures to facilitate trade, transport and regional connectivity.

The commitment was part of a joint statement signed by Prime Minister Shehbaz Sharif and Kyrgyz President Sadyr Zhaparov following their talks in Bishkek, where they reviewed bilateral cooperation in trade, investment, energy, transport and other areas.

The two sides agreed to take systematic steps to increase bilateral trade, expand the range of traded goods and attract investment, while developing joint projects in pharmaceuticals, agriculture, energy, light industry, tourism, the digital economy, virtual assets and other sectors, according to the joint outcome.

They also agreed to improve trade mechanisms, promote joint investment projects, strengthen industrial cooperation and expand direct business-to-business contacts as part of efforts to raise bilateral trade to $200 million annually.

Shehbaz said current bilateral trade stood at around $16 million and described the volume as far below the potential of relations between the two countries. He said the economic partnership needed to move towards a more practical and result-oriented stage.

The two countries also signed a transit-trade agreement. Shehbaz said it would facilitate trade, improve logistics and create new opportunities for regional connectivity. He said the two sides had reaffirmed the importance of effectively implementing the Quadrilateral Agreement on Traffic and Transit and agreed to work towards simplifying transport, customs and administrative procedures.

Zhaparov said Pakistan's seaports provided Kyrgyzstan with a natural route to South Asian markets and global trade routes, while Kyrgyzstan could serve as an important transport bridge for Pakistan to Central Asian and wider Eurasian markets, according to his statement issued after the talks.

The Kyrgyz president said transport and logistics had received special attention during the discussions and linked the two countries' geographical positions to the expansion of bilateral and regional trade.

Shehbaz said Pakistan had proposed initiatives to open roads and ports and develop routes through China and Uzbekistan. He said the first cargo had already been sent through the emerging route and had reached Pakistan, while further work was needed to resolve logistical issues.

Pakistan's Foreign Ministry says the Quadrilateral Agreement on Traffic and Transit involves Pakistan, China, Kyrgyzstan and Kazakhstan and provides a framework for facilitating transit traffic and trade between the participating countries, including connectivity between Central Asia and Pakistan's seaports.

Energy cooperation was another major component of the talks. The two sides reaffirmed the importance of CASA-1000, while Shehbaz said a joint working group would develop practical cooperation in electricity, hydropower, renewable energy, energy infrastructure and modern technologies.

The two governments also signed a broader package of bilateral instruments covering areas including science and technology, education, health, environment and climate change, narcotics control, extradition, research, virtual assets and e-commerce.

The two countries' chambers of commerce agreed to strengthen bilateral business ties, while Pakistan Post and Kyrgyz Post concluded an agreement on cooperation in postal services and e-commerce. Pakistan and Kyrgyzstan also established a sister-city relationship between Lahore and Osh.

Zhaparov said the two countries had signed a substantial package of bilateral documents and expressed confidence that the agreements reached would be implemented consistently. He also said Kyrgyzstan was ready to continue political dialogue and coordination with Pakistan at international forums.

The $200 million trade target itself dates back to President Zhaparov's state visit to Pakistan in December 2025, when the two countries agreed to raise bilateral trade to $200 million by 2027–28 through effective implementation of signed agreements and a result-oriented approach.

Trade between the two countries remains limited. While Shehbaz cited current bilateral trade at around $16 million, Pakistan's Foreign Ministry records bilateral trade of $5.18 million in fiscal year 2024–25, comprising Pakistani exports of $4.85 million and imports of $0.33 million.

The two countries have also been developing practical land links. In April 2026, Pakistan Customs reported the first export consignment from a Karachi export processing zone to Kyrgyzstan by land under the TIR system through Sost and China.

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