Pakistan pushes transit trade pact as Kyrgyz president arrives on first visit in 20 years

Kyrgyz President Sadyr Japarov attending a meeting in Moscow, in July 2025. (Reuters/File)
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Updated 03 December 2025
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Pakistan pushes transit trade pact as Kyrgyz president arrives on first visit in 20 years

  • Foreign ministers say early completion of transit agreement will help reach $100 million trade target
  • Current Pakistan–Kyrgyzstan trade is under $10 million, making $100 million target a major leap

ISLAMABAD: Pakistan and Kyrgyzstan on Wednesday agreed to accelerate work on a long-delayed transit trade agreement that both sides say is essential for raising bilateral commerce to $100 million, according to a statement by the foreign office in Islamabad. 

The development came as Kyrgyz President Sadyr Nurgozhoevich Zhaparov arrived in Islamabad earlier in the day for a two-day state visit, the first by a Kyrgyz president to Pakistan in 20 years, according to state broadcaster Radio Pakistan. He was received by Pakistan’s President Asif Ali Zardari and Prime Minister Shehbaz Sharif and accorded a 21-gun salute.

The two countries have been seeking to deepen economic and energy cooperation, with Pakistan looking to secure new trade corridors through Central Asia and Kyrgyzstan aiming to expand access to South Asian markets. A major element of their collaboration is CASA-1000, a regional electricity transmission project designed to export surplus hydropower from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan. The multibillion-dollar initiative has been long delayed by instability but is central to regional energy integration plans.

“We noted with satisfaction the convening of a business forum and expressed hope that early finalization of the Transit Trade Agreement will help achieve the bilateral trade target of $100 million,” the foreign office said after Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar met Kyrgyz Foreign Minister Zheenbek Kulubaev in Islamabad. 

Despite the ambition to raise bilateral commerce to $100 million, trade between Pakistan and Kyrgyzstan remains extremely limited. 

Official statistics show annual trade has fluctuated below $10 million in recent years, with Pakistan exporting around $5–8 million worth of goods to Kyrgyzstan and importing only a small volume in return. The modest base means achieving the $100 million target would require a tenfold increase, underscoring why both governments have linked progress to new transit arrangements, improved transport corridors and deeper private-sector engagement.

According to the foreign office statement, the two delegations agreed to hold regular meetings of the Pakistan–Kyrgyzstan Bilateral Political Consultations and the Inter-governmental Commission, mechanisms intended to strengthen cooperation on trade, transport, investment and energy.

The statement added that both governments reaffirmed their commitment to the “timely and effective implementation” of CASA-1000 and emphasized the need for “secure, sustainable and diversified connectivity routes,” a reference to regional transport and energy corridors linking Central and South Asia.

The two ministers also discussed regional security and agreed to coordinate in multilateral forums, including the United Nations (UN), the Shanghai Cooperation Organization (SCO), a Eurasian political and security bloc led by China and Russia, the Organization of Islamic Cooperation (OIC), a 57-nation body representing Muslim-majority states, and the Economic Cooperation Organization (ECO), a regional grouping focused on trade and connectivity in Central and South Asia.

Dar also conveyed Pakistan’s appreciation for Kyrgyzstan’s facilitation of Pakistani students and workers, an issue that has periodically arisen in bilateral ties, and emphasized the need to strengthen cooperation in education and people-to-people exchanges, the statement added.

Radio Pakistan said Zhaparov is accompanied in Islamabad by senior Kyrgyz ministers, top officials and business leaders. 

During the visit, he is scheduled to hold one-on-one and delegation-level talks with Pakistan’s leadership and address the Pakistan–Kyrgyzstan Business Forum on Thursday, which aims to bring private-sector firms into discussions on trade, transport and investment.


Pakistan to sell excess gas in international markets from Jan.1— petroleum minister

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Pakistan to sell excess gas in international markets from Jan.1— petroleum minister

  • Pakistan was reportedly exploring ways to reduce $378 million in annual losses from supply glut caused by excess fuel imports 
  • Move to sell excess LNG in international markets will limit $3.56 billion losses caused since 2018-19, says petroleum minister

ISLAMABAD: Pakistan will sell its excess liquefied natural gas (LNG) in international markets from Jan. 1, Petroleum Minister Ali Pervaiz Malik said, revealing the move would limit losses caused from a years-long supply gut. 

Local and international media outlets had reported in July that Pakistan was exploring ways to sell excess LNG cargoes amid a gas supply glut that government officials said was costing domestic producers $378 million in annual losses. News reports had said Pakistan had at least three LNG cargoes in excess that it imported from Qatar and has no immediate use for.

Speaking to reporters during a press conference on Sunday, Malik said there was an excess of imported gas in Pakistan as the use of this fuel for power generation had reduced in the country during the past few months. He said Islamabad had been forced to sell the gas to local consumers, due to which the circular debt in the gas sector from 2018 till now had ballooned to around Rs1,000 billion [$3.56 billion]. 

“From Jan. 1 we will sell this excess fuel in international markets to reduce our burden and limit our losses of this Rs1,000 billion [$3.56 billion],” Malik said. 

He said this move would also allow Pakistan’s state-owned enterprises in the sector to operate on their full capacity and generate profits and employment. 

Malik also spoke of foreign oil companies that were ready to invest millions in the country in the near future. 

The minister cited the recent visit of Turkish energy minister to Pakistan which had resulted in the state-owned Turkish Petroleum signing deals to carry out onshore and offshore drilling activities in Pakistan. 

“Turkish Petroleum will also open its office in Islamabad, where 10 to 15 Turkish nationals will be working,” Malik said. 

He also said that a delegation of the State Oil Company of Azerbaijan Republic (SOCAR) visit Pakistan this week, adding that it was also expected to collaborate with local companies for oil and gas exploration.

The minister said SOCAR was also opening its office in Pakistan. 

“It will also invest millions of dollars in the construction of an oil pipeline from Machike to Thalian in collaboration with the PSO (Pakistan State Oil) and FWO (Frontier Works Organization),” Malik said.