Strengthening Ties: Pakistan’s Economic Potential within the ECO

Atif Ikram Sheikh

ECO Chamber of Commerce and Industry (ECO-CCI), established in 1990, is an affiliated body of the Economic Cooperation Organization (ECO) dedicated to facilitating trade and economic cooperation among member countries, promoting trade relations, and organizing trade-related activities. It is a matter of pride that I am representing Pakistan as the President of ECO-CCI for 2025–26 and confident that, during this two-year term, there is tremendous potential to elevate Pakistan’s relations with ECO nations. It is also a blessing that under the experienced leadership and visionary foresight of Prime Minster Shehbaz Sharif, economic, social, and trade, ties between Pakistan and ECO countries will be further strengthened and future cooperation will unlock new avenues for economic development not only in Pakistan but also across the entire region.

Significant potential exists for strengthening trade relations between Pakistan and ECO member countries, which include Türkiye, Iran, Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. These nations are not only geographically close but also share deep historical, cultural, and economic ties. As a founding member of the ECO Chamber, Pakistan benefits from a platform that promotes regional economic growth and stability. The proximity of these countries lowers transportation costs, making trade more economical and efficient. Furthermore, their diverse natural resources and industrial capabilities present ample opportunities to satisfy Pakistan’s trade needs. Enhanced trade relations are vital for ensuring political stability, regional peace, and the expansion of export markets.

Facilitating the exchange of technology and expertise can transform Pakistan’s industrial and economic landscape. Simultaneously, enhancing banking and financial cooperation is essential for streamlining trade transactions with these nations. By judiciously leveraging the abundant opportunities for increased trade, Pakistan and its ECO partners can embark on a swift journey towards development and prosperity.

Trade Volume Highlights

• Pakistan–Kazakhstan: In 2021, bilateral trade was approximately $20 million, which soared to $139.33 million by 2023. Pakistan’s exports valued at $68.1 million featured prominent products such as bananas ($6.47 million), packaged medicines ($14.7 million), and lemons ($14.9 million). Imports from Kazakhstan reached $5.58 million, yielding a favorable trade balance. Both nations now aim to expand bilateral trade to $1 billion.
• Pakistan–Iran: In 2023, trade between Pakistan and Iran totaled around $2.8 billion. Iranian exports to Pakistan reached $943 million, significantly surpassing Pakistan’s $9.97 million in exports. Pakistan’s exports, primarily comprising construction vehicles, excavation machinery, and trailers, complement Iran’s offerings, which include petroleum gas, refined petroleum products, dried beans, LPG, bitumen, coal tar, non-alloy steel bars and rods, cyclic hydrocarbons, nuts, ethylene polymers, and agricultural commodities such as tomatoes, onions, and dates. Ambitious targets are set to raise bilateral trade to $10 billion, supported by joint initiatives to combat terrorism. Industry experts affirm that enhanced trade ties will benefit the economies, business communities, and people of both nations. Pak- Iran Preferential Trade Agreement Procedure for Operationalization of barter Trade under the agreement on Barter Trade between Quetta CCI and Pakistan and Zahidan CCI.
• Pakistan– Türkiye: Bilateral trade with Türkiye reached a record $1.4 billion in 2024 a nearly 30% year-on-year increase—with both nations now aspiring to boost trade to $5 billion. The cooperation spans sectors including textiles, education, health, and culture. Pakistan and Türkiye have an agreement on Trade in Goods.
• Pakistan–Tajikistan: In 2023, bilateral trade totaled $52.73 million an increase of 62.33% over the previous year. Pakistan’s exports surged to $48.94 million (a growth of 152.2%), while imports amounted to $3.80 million. Major exports include sugar and confectionery, potatoes, tomatoes, onions, pharmaceuticals, cucumbers, used clothing, and rice; imports primarily comprise coal, cotton, fruits, and vegetables. Pakistan and Tajikistan had signed Transit Trade Agreements.
• Pakistan–Azerbaijan: In 2024, trade with Azerbaijan climbed to $22 million—a 22.5% increase over 2023. Pakistan’s exports amounted to $21.8 million, contrasted with Azerbaijani exports of $196,000. This growth is bolstered by efforts to strengthen energy cooperation, exemplified by the Machike-Thalian-Tarujabba white Oil Pipeline project an initiative between the Federation of West African States (FWO) and Pakistan State Oil (PSO). Agreements to revise the framework for energy cooperation further underline both countries’ commitment to expanding trade and investment in energy, infrastructure, and connectivity. Pakistan and Azerbaijan had signed Preferential and transit Trade Agreements  
• Pakistan–Turkmenistan: Bilateral trade in 2023 totaled approximately $8.41 million, with Pakistan exporting around $2.23 million and importing $6.17 million. Over the past five years, Pakistan’s exports to Turkmenistan have grown at an annual rate of 16.3%, rising from $798,000 in 2018 to between $1.7 million and $2.23 million in 2023. Major exports include jute fabrics, jute bags, pyrotechnic products, fruits, vegetables, and pharmaceuticals.
• Pakistan–Uzbekistan: Pakistan’s exports have grown at an annual rate of 14.4%, increasing from $66.9 million in 2018 to $131 million in 2023. However, no services were exported in 2023. On the import side, Uzbekistan’s exports to Pakistan reached $231 million. Both countries had signed the Preferential Trade Agreement. 
• Pakistan–Kyrgyzstan: In 2023, Pakistan’s exports to Kyrgyzstan totaled approximately $10.68 million, indicating substantial potential for growth.
• Pakistan–Afghanistan: Pakistani exports to Afghanistan were valued at $969 million in 2023—a decline of 10.4% from $1.68 billion in 2018, while Afghan exports to Pakistan increased by 5.41% to $531 million (from $691 million in 2018). Key Pakistani exports include rice ($212 million), packaged medicines ($103 million), and other edible preparations ($86.7 million). Pakistan remains the largest importer of Afghan products, with Afghanistan ranking as the fourth largest destination for Pakistani exports. Pakistan facilitating Afghanistan through Transit Trade Agreement.

As President of the Federation of Pakistan Chambers of Commerce and Industry, I firmly believe that entering into preferential trade agreements with ECO countries is essential to boosting Pakistan’s trade volume. Improving land and air connectivity by establishing direct routes coupled with increased investments in joint projects, will fortify economic ties. Prioritizing cooperation in energy, infrastructure, and transportation and bolstering digital trade through strengthened e-commerce platforms will enable small- and medium-sized enterprises to access international markets.

The Economic Cooperation Organisation (ECO) has proposed and worked on several rail infrastructure projects to enhance connectivity and trade among its member countries, including the Islamabad-Tehran-Istanbul (ITI) route, the Kazakhstan-Turkmenistan-Iran (KTI) railway, and the Qazvin-Rasht-Astara railway.  The “ECO Container Train,” also known as the Islamabad-Tehran-Istanbul (ITI) freight train, is a project under the Economic Cooperation Organisation (ECO) that aims to facilitate trade and regional connectivity by linking Islamabad, Tehran, and Istanbul via a railway route, with the train resuming operations in 2021 after a period of inactivity.

Furthermore, formulating common economic policies to foster regional integration—particularly by accelerating major infrastructure and corridor projects will significantly enhance trade activities. ECO nations must work collaboratively to address shared challenges such as climate change, energy crises, and pandemics. Although obstacles remain, further strengthening trade relations between Pakistan and ECO member countries will unlock new avenues for economic development throughout the region.

The ECO Chamber of Commerce and Industry is poised to play a pivotal role by providing trade intelligence, facilitating the exchange of trade delegations, and organizing trade fairs and exhibitions. Exploring advancements in digital trade, renewable energy partnerships, and cross-border technology exchange promises to further transform regional dynamics and reinforce economic resilience among ECO countries.