Bilateral Trade - The Times Of Central Asia

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Trade and Investment

Kyrgyzstan and Afghanistan Launch Joint Business Council to Expand Trade and Investment

Kyrgyzstan and Afghanistan have established a joint Business Council aimed at boosting bilateral trade and promoting new investment projects, as Bishkek deepens economic engagement with Afghanistan following the removal of the Taliban from its list of banned organizations. The agreement to create the council was signed during an Afghan-Kyrgyz business forum in Bishkek, where officials and business leaders from both countries discussed opportunities in trade, agriculture, food processing, construction, and logistics. The new body is intended to serve as a permanent platform for direct dialogue between entrepreneurs, support joint initiatives, and coordinate business missions, according to Kyrgyz officials. Opening the forum, Temir Sariev, head of Kyrgyzstan’s Chamber of Commerce and Industry, said the move marked a new stage in bilateral economic relations. “Today, we are creating more than just a new structure. We are laying a solid foundation for systemic business interaction, which will increase trade volumes, attract investment, and open up new opportunities for entrepreneurs in Kyrgyzstan and Afghanistan,” Sariev said. According to Sariev, Kyrgyz exports to Afghanistan reached a record $50.4 million in 2024. The Afghan delegation was led by Sayed Karim Hashemi, who said Afghan businesses were particularly interested in expanding cooperation in agriculture, trade, and infrastructure projects. Trade between the two countries has accelerated since Kyrgyzstan removed the Taliban from its list of prohibited organizations in September 2024, a move the Kyrgyz Foreign Ministry said was intended to support regional stability and strengthen constructive dialogue. In December 2025, Kyrgyzstan opened its Trade House in Kabul, a platform designed to promote Kyrgyz exports and facilitate direct business contacts. According to Afghanistan’s Ministry of Industry and Commerce, the country’s main exports to Kyrgyzstan include aluminum and copper products, pressure cookers, carpets, fruits, and vegetables, while Kyrgyzstan exports significant volumes of petroleum products to Afghanistan. Kyrgyzstan has also expanded its regional trade infrastructure to support access to the Afghan market. In November 2024, it secured a pavilion at the Termez International Trade Center in Uzbekistan, near the Afghan border. The center has become a key transit hub for trade flows between Central Asia and Afghanistan, offering Kyrgyz exporters a strategic gateway into the Afghan market. The new Business Council reflects Kyrgyzstan’s broader strategy to diversify regional trade routes and strengthen economic ties with southern neighbors amid shifting geopolitical and logistics patterns in Central Asia.

Kazakhstan-China Economic Cooperation

Kazakhstan and China Aim to Double Bilateral Trade to $100 Billion

Kazakhstan and China plan to increase bilateral trade to $100 billion in the coming years, nearly doubling the expected volume for 2026, Kazakhstan’s Deputy Prime Minister and Minister of National Economy Serik Zhumangarin said. According to Kazakhstan’s government press service, Zhumangarin held talks with Chinese Vice Premier Ding Xuexiang on the sidelines of the 9th China-Eurasia Expo in Urumqi. The talks focused on expanding strategic partnership, joint investment projects, transport and logistics infrastructure, and broader trade cooperation. Kazakhstan said bilateral trade reached a record $48.7 billion in 2025. In the first five months of 2026, trade volume totaled $22 billion, up 27% compared with the same period a year earlier. Officials expect trade to exceed $50 billion by the end of this year, with more than half of total turnover linked to China’s Xinjiang Uyghur Autonomous Region, which remains the key hub of economic interaction between the two countries. “Our main task is to achieve $100 billion in mutual trade in the near future. To do this, we need to accelerate the approval of the Kazakhstan-China Trade and Economic Cooperation Program and Roadmap for 2027-2030,” Zhumangarin said. China has invested around $30 billion in Kazakhstan since independence, making it one of the country’s largest foreign investors, he added. Kazakhstan has invited Chinese businesses to expand participation in high value-added projects, including deep agricultural processing, full-cycle metallurgical production, agrochemicals, and drone manufacturing. Zhumangarin also praised the technological level of the China-Eurasia Expo and called on Chinese manufacturers and investors to localize production in Kazakhstan. Agricultural trade was another priority in the talks. Bilateral trade in agricultural products has already reached $2 billion, while China has approved imports of 34 categories of Kazakhstan's agricultural goods. Another nine categories, including chilled meat, are still under review. Zhumangarin said around 85% of all overland freight traffic between China and Europe currently passes through Kazakhstan. Following the completion of the new Bakhty-Ayagoz rail crossing, the combined capacity of border checkpoints between the two countries is expected to reach 100 million tons annually. China also confirmed its readiness to jointly implement the construction of the new railway crossing, which officials say will improve the resilience and security of international transport routes. Ding said Beijing was interested in expanding cooperation with Kazakhstan in the digital economy, artificial intelligence, energy, and navigation technologies, and encouraged Kazakhstani companies to use the China-Eurasia Expo as a platform to expand their presence in the Chinese market. As previously reported by The Times of Central Asia, China now accounts for nearly a quarter of Kazakhstan’s total foreign trade turnover. However, the growth of Chinese imports continues to outpace the increase in Kazakhstani exports.

Middle Corridor

Kyrgyzstan and Georgia Seek Black Sea Link for CKU Railway

Kyrgyzstan and Georgia placed Black Sea access at the center of their transport agenda during Georgian Prime Minister Irakli Kobakhidze's official visit to Bishkek on June 11-13. In talks with President Sadyr Japarov at Yntymak Ordo, the new presidential palace complex, on June 12, the two sides linked their cooperation to the China-Kyrgyzstan-Uzbekistan railway, known as CKU, and to Georgia's role in the Trans-Caspian route between Central Asia and Europe. The visit was the first official trip to Kyrgyzstan by a Georgian head of government since the two states established diplomatic relations 34 years ago. "Special attention was paid to linking the China-Kyrgyzstan-Uzbekistan railway with Georgia's port infrastructure," Japarov said after the talks. He called cooperation in this sector "one of the priority areas" in relations between the countries. That focus gave the visit a wider regional dimension, as landlocked Kyrgyzstan still lacks a direct rail link with China. Georgia offers access to Black Sea ports and sits on the South Caucasus section of the Middle Corridor. If the CKU line becomes operational, Bishkek wants cargo moving from China through Kyrgyzstan and Uzbekistan to connect with routes across the Caspian Sea, Azerbaijan, and Georgia. Kobakhidze linked the same issue to Tbilisi's transit goals. "We emphasized the importance of developing the Middle Corridor," he said, adding that the route needs more cargo flows. He said Georgia was closely following the CKU and was pleased that the project was "progressing rapidly," because it would strengthen links between Central Asia and the South Caucasus. The two sides signed a joint statement and a package of bilateral documents after the talks. The agreements covered aviation authorities, state property management, veterinary cooperation, education, justice, sport, radiation safety, foreign ministry cooperation for 2027-2028, and customs cooperation. The customs document provides for advance exchanges of information about goods and vehicles moving between the two countries. That aspect may prove the most practical for freight, since cargo routes depend on data exchange, border processing, and predictable clearance times. The CKU railway has moved from a decades-long plan to active construction. The financing agreement signed in Bishkek set the project cost at $4.7 billion. About half will be financed through a 35-year Chinese loan to the joint project company. China holds a 51% stake in the company, while Kyrgyzstan and Uzbekistan each hold 24.5%. The planned line runs from Kashgar in China through Kyrgyzstan to Andijan in Uzbekistan. The Kyrgyz section represents the most difficult part of the route. It is about 305 kilometers long, with 50 bridges and 29 tunnels planned. More than 5,000 people and about 5,600 pieces of specialized equipment were involved by late March, with tunnel excavation, earthworks, and bridge construction already under way. Transport Minister Talantbek Soltobaev said on June 10 that work was in progress on sections totaling up to ten kilometers. Japarov has outlined 2030 as a target for the launch. The project would give Bishkek a rail role it has never had. Kyrgyzstan has no through rail route linking China with...

Bilateral Trade

Tajikistan and Pakistan Agree to Expand Trade and Economic Cooperation

Tajikistan and Pakistan have agreed to deepen trade and economic cooperation following the eighth meeting of their Joint Commission on Trade, Economic, Scientific, and Technical Cooperation in Dushanbe. The meeting concluded with the signing of a protocol outlining measures to expand bilateral cooperation across a range of sectors, including trade, investment, energy, agriculture, and transport. According to Tajikistan’s Ministry of Energy and Water Resources, the discussions also covered banking, education, science and technology, tourism, youth policy, sports, and communications. Tajikistan’s delegation was led by Minister of Energy and Water Resources Daler Juma, while Pakistan was represented by Federal Minister for Energy Sardar Awais Ahmad Khan Leghari. Officials from both countries said bilateral relations have improved in recent years, supported by growing political engagement and economic cooperation. Trade between the two countries reached $43 million in 2025, according to figures presented during the meeting. Bilateral trade totaled $8.9 million in the first quarter of 2026. The two sides agreed on the need to increase trade volumes by expanding the range of goods exchanged, identifying new areas of cooperation, and developing ties between businesses and investors. Particular attention was given to the CASA-1000 electricity transmission project, which aims to export surplus hydropower from Tajikistan and Kyrgyzstan to Afghanistan and Pakistan. Participants described CASA-1000 as a key element of regional energy cooperation and an important platform for expanding economic links between Central and South Asia. The protocol of the commission’s eighth session is expected to help advance future cooperation and support the implementation of joint initiatives. The meeting ended with the signing of the protocol of the commission’s eighth session, which both sides said would help advance future cooperation and support the implementation of joint initiatives.

agricultural exports

Kazakhstan’s Agricultural Exports to Iran Nearly Double in 2025

Kazakhstan’s agricultural exports to Iran nearly doubled in 2025, driven by a sharp increase in grain shipments, Agriculture Minister Aidarbek Saparov said during talks with Iranian Minister of Industry, Mine and Trade Seyyed Mohammad Atabak. According to Kazakhstan’s Agriculture Ministry, agricultural trade between the two countries rose 55.8% year-on-year to $342 million in 2025, accounting for 79% of total bilateral trade. Exports of Kazakhstan's agricultural products increased 97% to $238.5 million. Grain exports more than doubled to 1.1 million metric tons, valued at $225.3 million, Saparov said. “Kazakhstan attaches special importance to expanding cooperation with Iran in the agricultural sector. Our markets complement each other, as demonstrated by the steady growth in bilateral agricultural trade,” he said. The ministers discussed prospects for expanding trade in agricultural products, investment cooperation, and the development of joint projects in the agro-industrial sector. Particular attention was given to increasing Kazakhstan's exports of grain, beef, and lamb that meet international veterinary and halal standards. The two sides also highlighted the potential for expanding supplies of vegetable oils and other food products to the Iranian market. Atabak said Iran was interested in expanding economic ties with Kazakhstan, including through increased agricultural trade, improved transport links, and joint processing projects. “Kazakhstan is an important partner for Iran in the region. We are interested in increasing bilateral trade, expanding agricultural supplies, developing logistics routes, and implementing joint projects in processing and agro-industrial cooperation,” he said. Saparov also invited Iranian investors to participate in projects involving agricultural production and value-added processing, including grain and oilseed processing facilities. The growth in agricultural trade comes despite disruptions to some bilateral projects earlier this year. In April, Kazakhstan’s Deputy Foreign Minister Arman Issetov said several joint projects with Iran had been suspended because of military hostilities there. Trade ties have nevertheless continued to expand. In May, Kazakhstan's vegetable oil producers launched pilot shipments of rapeseed and sunflower oil to Iran via the Caspian Sea, opening a new export route for the sector. Kazakhstan and Iran have set an ambitious target of increasing bilateral trade to $1 billion in the coming years, with plans to double that figure over the longer term, following agreements reached during Iranian President Masoud Pezeshkian’s visit to Astana last year.

Mongolia

Uzbekistan and Mongolia Target $100 Million Trade Turnover

Uzbekistan and Mongolia discussed expanding cooperation in mining, agriculture, transport, and industrial production during the Uzbekistan-Mongolia Business Forum held in Tashkent, according to Uzbekistan’s Ministry of Investment, Industry and Trade. More than 70 companies from the two countries took part in the forum, which brought together government officials, business representatives, and investors seeking to deepen economic ties between Central Asia and Northeast Asia. The delegations were led by Uzbekistan’s Deputy Minister of Investment, Industry and Trade Ilzat Kasimov, Mongolian Ambassador to Uzbekistan Dadanhuu Batbaatar, and Mongolian parliament member Sukhbaatar Erdenebat. One of the main topics was cooperation in geology and mining. The ministry said Uzbekistan’s Ministry of Geology has already started practical work on developing mineral deposits through its representative office in Ulaanbaatar. The sides also reviewed growing trade figures. Uzbekistan’s exports to Mongolia increased by 15.6% in the first quarter of 2026, and both governments set a target of raising annual bilateral trade turnover to $100 million. Industrial cooperation focused heavily on processing Mongolian wool and cashmere in Uzbekistan for export markets. In agriculture, officials discussed plans to increase the number of Mongolian sheep raised in Uzbekistan to one million by 2029, while Uzbek irrigation technologies may also be introduced in Mongolia. Transport and logistics were another key area of discussion. Participants explored launching freight transportation along the Uzbekistan-Kyrgyzstan-China-Mongolia corridor, which could improve trade routes between Central and East Asia. The forum included B2B and G2B negotiations involving companies such as Suzur Health Med, Prime Nomadic Meat, and Tsamkhag Construction. According to the ministry, the talks resulted in the formation of a package of investment projects and the creation of a permanent mechanism to monitor joint initiatives. Economic ties between the two countries have been growing from a relatively small base. Bilateral trade totaled about $14 million in 2023 but nearly doubled year-on-year, driven by what analysts describe as complementary economies. Uzbekistan exports automobiles, textiles, and agricultural products, while Mongolia supplies livestock products, wool, leather, and minerals.