The China-Pakistan Economic Corridor (CPEC) has opened doors for expansion of trade between Pakistan and Kyrgyzstan, WealthPK reported.
The two countries have had long-standing cultural, religious and economic ties. Kyrgyzstan won independence in 1991, unlocking a new era for Pakistan-Kyrgyzstan relations.
Pakistan recognised Kyrgyzstan almost immediately, and official diplomatic ties were established in 1992.
In order to develop commercial and trade links, Pakistan and Kyrgyzstan work and cooperate in a variety of ways. Twenty two Pakistani banks are already operating there.
Furthermore, bilateral ties have strengthened greatly as both countries support and interact with each other at many international forums such as the Organisation of Islamic Cooperation (OIC), United Nations (UN), Economic Cooperation Organisation (ECO), Shanghai Cooperation Organisation (SCO) and others. Kyrgyzstan is a major provider of hydroelectric power in Central Asia because of its abundant water resources.
Pakistan is expected to acquire 1,300 megawatts of hydel electricity from Kyrgyzstan and Tajikistan under the Central Asia-South Asia Electricity Transmission and Trade Programme (CASA-1000). By 2023, the project should be completed.
The Quadrilateral Traffic and Transit Agreement (QTTA) between Pakistan, China, Kyrgyzstan and Kazakhstan, which is part of CPEC, offers an excellent communication network between Central Asia and Pakistan’s Gwadar Port in the Arabian Sea.
Pakistan and Kyrgyzstan, two CAREC (Central Asia Regional Economic Cooperation) nations that are close neighbours, may considerably benefit from enhanced regional connectivity and trade. Both nations are growing economies with substantial agricultural bases and significant strategic benefits to offer the alliance.
Despite regular high-level active engagements with each other, trading volume is quite modest. The current trade volume does not match the actual potential that exists between the two nations.
THE ARTICLE ORIGINALLY APPEARED ON THE CHINA ECONOMIC NET
Published in The Express Tribune, January 30th, 2022.
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