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Kyrgyzstan, Pakistan view logistics to boost trade - ahead of President Sadyr Zhaparov’s visit

Economy Materials 3 December 2025 13:34 (UTC +04:00)
Kyrgyzstan, Pakistan view logistics to boost trade - ahead of President Sadyr Zhaparov’s visit
Gulnara Rahimova
Gulnara Rahimova
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BAKU, Azerbaijan, December 3. In the ever-changing game of regional geoeconomics, landlocked countries are pulling out all the stops to weave themselves into the fabric of international logistics and energy chains. Kyrgyzstan has its eyes on the prize, focusing on building sturdy transport routes and energy corridors that link Central and South Asia like a well-oiled machine. In light of the situation, joining forces with Pakistan is becoming a key piece of the puzzle.

Diplomatic relations between Bishkek and Islamabad have existed since 1992 and are reinforced through platforms such as the UN, SCO, the Organization of Islamic Cooperation, and the ECO. However, high-level political contacts have been few and far between: the last time a Kyrgyz president set foot in Pakistan was back in 2005. This makes the state visit of Kyrgyz President Sadyr Zhaparov, scheduled for December 3–4, 2025, a significant step toward revitalizing bilateral dialogue.

At the invitation of Prime Minister Shehbaz Sharif, President Zhaparov will meet with top Pakistani leadership, including President Asif Ali Zardari, the Speaker of the National Assembly, and the Chairman of the Senate. A Kyrgyz-Pakistani Business Forum is planned during the visit, intended to serve as a central platform for discussing new economic opportunities.

Even with a long history of relations, bilateral trade still falls short of its potential. In 2024, trade turnover reached only $16 million. The trend in recent years shows a decline: it was $11.2 million in the 2022–2023 fiscal year, falling to $5.18 million in 2024–2025. In early 2025, bilateral trade for January–May amounted to approximately $7.7 million, down 10% from the same period last year. An ongoing imbalance hangs on: Kyrgyz exports during this period totaled only $487,000, while imports from Pakistan exceeded $7.2 million.

Even with these hurdles in their path, both countries are aiming for the stars: increasing trade to $100 million in the short term and $500 million in the long term. To achieve these goals, in July 2025, the two sides signed memoranda of understanding on standardization, investment facilitation, and halal trade. Another important step was a document agreed on November 29, 2025, by Kyrgyzstan, Pakistan, Iran, and Türkiye under the ECO framework, aimed at simplifying customs procedures and expanding digital solutions.

Investment cooperation is picking up steam and moving in a more positive direction. According to the National Investment Agency, Pakistan’s foreign direct investment in Kyrgyzstan has steadily grown over the past five years, peaking in 2023 at $6.9 million. In 2024, it fell to $4.6 million but remained higher than in the early 2020s. From 2020 onward, Pakistan’s investments were as follows: $2 million in 2020, $1.2 million in 2021, $4.4 million in 2022, $6.9 million in 2023, and $4.6 million in 2024. The agency notes growing Pakistani business interest in sectors such as gold, copper, granite, and tungsten mining.

A key focus of bilateral cooperation remains logistics and energy corridors. Tolkunay Taalaybekova, Vice President of the Kyrgyz Chamber of Commerce and Industry, emphasizes that logistics and technological cooperation form the foundation for long-term connectivity between the two countries.

In the realm of energy, the crown jewel is CASA-1000, boasting a budget that breaks the bank at over $1.2 billion, with the goal of sending hydroelectric power from Kyrgyzstan and Tajikistan straight to the doorsteps of Pakistan and Afghanistan. Construction in Kyrgyz and Tajik territories is complete; the Pakistani section is expected to finish by the end of 2025, and the Afghan section by 2027. Once operational, Kyrgyzstan and Tajikistan will be able to supply up to 5 billion kWh annually, roughly 5% of Pakistan’s annual electricity consumption. According to Kyrgyzstan’s Ministry of Energy, participation in CASA-1000 could generate up to $250 million in annual revenue for Kyrgyzstan and Tajikistan. During the upcoming visit, a new memorandum on energy cooperation is set to be signed, with discussions lined up about linking Pakistan to the Kyrgyzstan–China–Pakistan cross-border transmission line.

Transport is equally significant. Being landlocked and dependent on transit through China, Uzbekistan, Tajikistan, and Afghanistan presents challenges for Kyrgyz businesses. A potential solution is linking the China–Kyrgyzstan–Uzbekistan railway with the trans-Afghan Uzbekistan–Afghanistan–Pakistan route, providing Kyrgyzstan with access to Karachi Port. On this account, in July 2025, a Kyrgyz delegation led by Edil Baysalov held talks with Karachi Port Trust and visited the Hutchison Ports Pakistan container terminal. Kyrgyzstan also proposed using the “At-Bashi” logistics center to support Pakistan’s National Logistics Corporation.

President Zhaparov’s state visit carries strategic significance amid increased cooperation in 2025. Over the summer and fall, both countries signed key agreements laying the groundwork for large-scale projects in transport, digitalization, and energy. The completion of CASA-1000, discussions on new railway connections, and the development of investment partnerships are set to move bilateral ties into a practical implementation phase. For Kyrgyzstan, this visit represents an opportunity to strengthen its economic position and secure reliable access to South Asian markets; for Pakistan, it provides a chance to expand its energy base and enhance connectivity with Central Asia. The potential of these initiatives suggests that the ambitious trade and economic goals set by both sides could be achievable in the near future.

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