Pakistan, Turkmenistan to finalize transit trade agreement, introduce liberal visa regime

ISLAMABAD: Deputy Prime Minister Ishaq Dar said on Tuesday Pakistan and Turkmenistan have agreed to expand bilateral investment in the fields of energy, connectivity and information technology (IT) while seeking the early finalization of a transit trade agreement and the institution of a liberal visa regime.
Turkmenistan’s Foreign Minister Rasit Meredow is currently visiting Islamabad for three days with his delegation where he held wide-ranging discussions with the deputy prime minister who also holds his country’s portfolio for external affairs. The two leaders spearheaded their delegations at the third round of bilateral political consultations wherein they focused on various global and regional developments.
There has been a flurry of recent visits, investment talks and economic activity between Pakistan and Central Asian states, including meetings of top Pakistani officials with the leaders from Uzbekistan and Azerbaijan.
Located in a landlocked but resource-rich region, Central Asian countries need better access to regional markets including Pakistan, China, India and the countries of West Asia. Meanwhile, Islamabad is seeking to bolster trade and investment ties with allies to stabilize its fragile $350 billion economy as it faces an acute balance of payment crisis amid soaring inflation and rising external debt.
“We have agreed to intensify our joint efforts to further expand and deepen bilateral investment, especially in energy, connectivity and information technology,” Dar said during a joint news conference with Meredow after the talks at the foreign office in Islamabad.
“We agreed to work together on trade diversification, early finalization of the transit trade agreement and instituting a liberal visa policy to facilitate greater contacts between businessmen of the two countries,” he continued, adding that both sides reiterated commitment to enhancing the volume of bilateral trade and to making it commensurate with its true potential of the existing ties between the two countries.
According to the foreign office, Pakistan’s bilateral trade with Turkmenistan stands at $8.41 million, with Pakistan exporting $2.234 million and importing $6.17 million.
Dar invited Turkmen companies to benefit from the investment environment created by the Special Investment Facilitation Council (SIFC) and the regional connectivity opportunities provided by Pakistan’s southern port cities of Gwadar and Karachi.
Last year, the country established the SIFC, a civil-military hybrid body designed to oversee foreign financing, to help overcome its prolonged economic turmoil that has forced successive administrations to seek financial assistance from global lenders and close allies.
Pakistan has recently offered Central Asian states to become part of the China-Pakistan Economic Corridor (CPEC) project, under which Beijing has pledged around $65 billion in energy, infrastructure, and other projects in Pakistan.
Islamabad believes the corridor presents a strategic opportunity for Central Asian states to transport their goods with greater ease to regional and global markets.
Pakistani foreign minister also emphasized the importance of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline and electricity transmission line, saying, “These projects offer enormous opportunities for our region and our two countries.”
The pipeline will link the energy-rich Central Asian country of Turkmenistan through Afghanistan to Pakistan and India, supplying nearly 33 billion cubic meters (bcm) of natural gas each year along a route stretching about 1,800 kilometers from Galkynysh, the world’s second-biggest gas field, to the Indian city of Fazilka near the Pakistan border.
Work on the project has been stalled due to differences over price review and delivery points.
Meredow endorsed Dar’s emphasis on the mega projects, stating that both sides agreed to make joint efforts to implement these large-scale initiatives, which are the cornerstone of Turkmen-Pakistani trade and economic cooperation.
“Our discussions reaffirmed our shared commitment and unwavering resolve to collaborate on the practical implementation of these initiatives,” he said, adding that transport emerged as another key area for enhanced Turkmen-Pakistani cooperation.
“Leveraging our respective strengths, can jointly develop modern infrastructure along east, west and north, south corridors,” he continued. “In this context, we agreed to maintain an active dialogue on creating international transport rules that capitalize on the transit potential of both Turkmenistan and Pakistan.”
Addressing the media, Meredow said both sides engaged in detailed discussions on fostering closer ties in the fields of science, education and culture.
“Our collaboration with Pakistan is firmly set on a future-oriented cause with a steady growth envisioned across all dimensions,” he added.