BISHKEK, September 2, 2026: Pakistan and Kyrgyzstan have agreed to increase bilateral trade from the current level of around $16 million to $200 million annually within two years, signalling a major push to transform their longstanding political friendship into a stronger economic partnership.
Prime Minister Muhammad Shehbaz Sharif and Kyrgyz President Sadyr Zhaparov witnessed the signing of an agreement aimed at achieving the ambitious trade target as the Pakistani premier concluded his three-day official visit to Kyrgyzstan.
Prime Minister Shehbaz said he had proposed replacing the initial Memorandum of Understanding (MoU) on increasing bilateral trade with a formal agreement to ensure concrete action towards achieving the $200 million target.
He said the two countries would develop a comprehensive plan of practical measures to expand trade, improve trading mechanisms, promote joint investments, strengthen industrial cooperation and increase direct business-to-business contacts.
“Economic partnership must now move to a more practical and result-oriented stage,” the prime minister said, emphasising greater engagement between Pakistani businesses, financial institutions and their Kyrgyz counterparts.
The two countries also placed regional connectivity and transit trade at the centre of their economic agenda. Prime Minister Shehbaz welcomed the signing of an agreement on transit trade, saying it would facilitate commercial movement, improve logistics and create new opportunities for connectivity between South and Central Asia.
Both sides reaffirmed their commitment to implementing the quadrilateral agreement on traffic and transit and agreed to work towards simplifying transport, customs and administrative procedures.
Kyrgyz President Sadyr Zhaparov said Pakistan’s seaports could provide Kyrgyzstan with an important gateway to South Asian markets and international trade routes. He stressed the need to expand the range of traded goods, attract investment and develop joint projects in key sectors.
The two countries identified pharmaceuticals, agriculture, food processing, textiles and light industry, energy, tourism, digital economy, mining, halal industry and technology as areas offering significant potential for joint ventures and investment.
The leaders also agreed to strengthen industrial cooperation through production localisation, technology transfer and mutually beneficial investment projects.
Energy Cooperation Gains Importance
Energy emerged as another important pillar of the expanding partnership. Pakistan and Kyrgyzstan reaffirmed their commitment to the timely implementation of the CASA-1000 power project and welcomed the establishment of a joint working group to develop practical cooperation in electricity, hydropower, renewable energy, energy infrastructure and modern technologies.
The two sides also expressed interest in expanding cooperation in environmental protection, climate change and sustainable development.
Prime Minister Shehbaz said stronger connectivity and energy cooperation would help realise the broader vision of integrating the economies of South and Central Asia.
17 Bilateral Documents Signed
According to Deputy Prime Minister and Foreign Minister Ishaq Dar, 17 bilateral documents were signed during the Pakistani premier’s visit, covering trade, transit, investment, education, health, environment, technology, security and other areas.
The agreements included a diplomatic Programme of Cooperation between the foreign ministries for 2026-27, a transit trade agreement, a treaty on extradition and several MoUs covering education, medical training, climate change, strategic research, security and virtual assets.
An agreement was also signed to establish Lahore and Osh as sister cities, while Pakistan Post and Kyrgyz Post agreed to strengthen cooperation in postal services and e-commerce.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Chamber of Commerce and Industry of the Kyrgyz Republic also signed an agreement aimed at strengthening direct business-to-business cooperation.
Both countries further welcomed cooperation between their respective virtual-assets authorities, reflecting growing interest in digital finance, blockchain technologies and cross-border investment.
Focus on Investment and Business Linkages
The leaders highlighted the important role of the Kyrgyz-Pakistan Joint Business Council in promoting direct contacts between the private sectors of the two countries.
They also welcomed the establishment of the Tamchy Special Financial Investment Territory in Kyrgyzstan and expressed interest in connecting Pakistani financial institutions, investment funds, banks and businesses with the new investment platform.
The two sides agreed that stronger trade, investment, industrial cooperation and transport links could make a practical contribution to economic connectivity between Central and South Asia.
President Zhaparov said Kyrgyzstan was ready to undertake joint projects with Pakistan in several priority sectors and emphasised the potential of Pakistan’s seaports for expanding Kyrgyzstan’s access to global markets.
Broader Cooperation
Pakistan and Kyrgyzstan also agreed to expand cooperation in education, science and technology, health, culture and tourism. Both sides expressed interest in increasing student and academic exchanges, strengthening links between universities and research institutions and promoting mutual tourism.
Security and defence cooperation also featured prominently in the discussions, with both countries reaffirming their resolve to strengthen cooperation against terrorism, extremism and other emerging threats.
The two leaders stressed that peace and stability in the region, particularly in Afghanistan, were essential for unlocking the full potential of trade, transport, energy and economic connectivity between South and Central Asia.
Prime Minister Shehbaz welcomed Kyrgyzstan’s election as a non-permanent member of the United Nations Security Council for 2027-28 and congratulated the country on hosting the sixth World Nomad Games.
He also congratulated Kyrgyzstan on its successful chairmanship of the Shanghai Cooperation Organisation and reiterated Pakistan’s commitment to strengthening cooperation through the UN, SCO, Organisation of Islamic Cooperation and other multilateral platforms.
President Zhaparov accepted Prime Minister Shehbaz’s invitation to visit Pakistan, with dates to be finalised through diplomatic channels.
The agreements signed during the visit and the new $200 million trade target mark an important step towards converting the close political relationship between Pakistan and Kyrgyzstan into a more dynamic partnership based on trade, investment, energy, connectivity and private-sector cooperation.
