ECO Countries and Pakistan: The Future of Economic, Social, and Trade Relations

ATIF AKRAM SHIAKH

ECO Chamber of Commerce and Industry (ECO-CCI), established in 1990, is an affiliated institution of the Economic Cooperation Organization (ECO), aimed at facilitating trade and economic cooperation among member countries, fostering trade relations, and organizing trade-related activities.

It is a matter of great pride for us that for the years 2025-26, the presidency of this organization belongs to Pakistan. I hope that during this two-year tenure, we will elevate Pakistan’s relations with ECO member countries to new heights. Through the implementation of effective strategies and policies, we can further strengthen economic, social, and trade relations between Pakistan and ECO countries. Strengthening cooperation with these nations in the future will open new avenues for economic development, not only for Pakistan but for the entire region.

There is significant potential to strengthen trade relations between Pakistan and ECO (Economic Cooperation Organization) member countries. The ECO countries include Turkey, Iran, Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. These countries are not only geographically close but also share deep historical, cultural, and economic ties.

The Economic Cooperation Organization (ECO) provides a crucial platform for promoting regional economic cooperation. Pakistan is one of ECO’s founding members and is committed to fostering economic development and stability in the region. Due to geographical proximity, trade with ECO countries involves lower transportation costs, making trade more affordable and efficient. Additionally, various natural resources and industrial capacities exist, helping Pakistan meet its trade needs.

Strong trade relations with ECO countries are essential for political stability and regional peace and can help Pakistan access new markets and boost exports. By promoting the exchange of technology and knowledge, Pakistan can achieve a revolution in industrial and economic development. Financial and banking cooperation must be strengthened to facilitate trade transactions with these countries. There are vast opportunities to increase trade volume between Pakistan and ECO nations, and by utilizing them wisely, both Pakistan and member countries can embark on a rapid journey toward development and prosperity.

Current Trade Volume Between Pakistan and ECO Countries

Pakistan-Kazakhstan

Trade between Pakistan and Kazakhstan has seen significant growth in recent years. In 2021, bilateral trade reached $20 million, and in 2023, it increased to $139.33 million. Pakistan’s exports to Kazakhstan were valued at $68.1 million, with major exported items including:

Packaged pharmaceuticals ($14.7 million)
Bananas ($6.47 million)
Lemons ($14.9 million)

Kazakhstan’s exports to Pakistan were worth $5.58 million, with the trade balance in favor of Pakistan. The future goal is to increase bilateral trade to $1 billion.

Pakistan-Iran

In 2023, trade volume between Pakistan and Iran was approximately $2.8 billion, with Iran exporting more to Pakistan than vice versa.

Pakistan’s exports to Iran: $9.97 million
Iran’s exports to Pakistan: $943 million

Major Pakistani exports to Iran include construction vehicles, excavation machinery, trailers, and semi-trailers, while Iran’s key exports to Pakistan include petroleum gas, refined petroleum, dried legumes, LPG, bitumen, coal tar, iron or non-alloy steel bars, aromatic hydrocarbons, nuts, ethylene polymer, tomatoes, onions, and dates.

Pakistan and Iran have recently taken measures to increase trade volume to $10 billion, emphasizing counterterrorism cooperation and boosting commercial ties. Industrialists believe strengthening trade with Iran will benefit Pakistan’s economy, traders, and the general public.

Pakistan-Turkey

Pakistan’s trade relations with Turkey are also significant. Both countries aim to enhance cooperation in textiles, education, health, and culture.

In 2024, bilateral trade volume reached its highest level, growing by nearly 30% year-on-year to $1.4 billion.
Both countries aim to increase this to $5 billion.

Pakistan-Tajikistan

In 2023, the bilateral trade volume between Pakistan and Tajikistan reached $52.73 million, reflecting a 62.33% increase from the previous year.

Pakistan’s exports: $48.94 million (152.2% increase)
Pakistan’s imports: $3.80 million

Major Pakistani exports: Sugar, sugar confectionery, potatoes, tomatoes, onions, pharmaceuticals, cucumbers, apparel, rice, tomatoes
Major Pakistani imports: Coal, cotton, fruits, and vegetables

Pakistan-Azerbaijan

In 2024, Pakistan and Azerbaijan’s trade volume reached $22 million, a 22.5% increase from 2023.

Pakistan’s exports to Azerbaijan: $21.8 million
Azerbaijan’s exports to Pakistan: $196,000

Both countries have focused on strengthening energy cooperation, including partnerships between Azerbaijan’s State Oil Company (SOCAR), Pakistan’s Frontier Works Organization (FWO), and Pakistan State Oil (PSO) for the Machike-Thalian-Tarujabba White Oil Pipeline project. Agreements have also been signed to modify the trade framework, including cargo and petroleum product sales.

Pakistan-Turkmenistan

In 2023, bilateral trade between Pakistan and Turkmenistan was approximately $8.41 million.

Pakistan’s exports: $2.234 million
Pakistan’s imports: $6.17 million

Major Pakistani exports: Jute fabric, jute bags, pyrotechnic products, fruits, vegetables, and pharmaceuticals

Pakistan-Uzbekistan

Over the past five years, Pakistan’s exports to Uzbekistan have grown at an annual rate of 14.4%, increasing from $66.9 million in 2018 to $131 million in 2023.

Uzbekistan’s exports to Pakistan in 2023: $231 million

Pakistan-Kyrgyzstan

In 2023, Pakistan’s exports to Kyrgyzstan reached only $10.68 million, highlighting the need for improvement in trade relations.

Pakistan-Afghanistan

In 2023, Pakistan exported $969 million worth of goods to Afghanistan, a 10.4% decrease from 2018.

Pakistan’s major exports to Afghanistan: Rice ($212 million), packaged pharmaceuticals ($103 million), and other edible preparations ($86.7 million)
Afghanistan’s exports to Pakistan: $531 million, a 5.41% increase from 2018

Pakistan is Afghanistan’s largest importer of goods, with Afghanistan ranking as the fourth-largest destination for Pakistani exports.

Future Strategies and Recommendations

As President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), President of ECO Chamber of Commerce and Industry (ECO-CCI), and Vice President of KASI Chamber, I firmly believe that Pakistan must establish preferential trade agreements (PTAs) with ECO countries to enhance exports and imports.

Improving land and air connectivity will boost trade activities.
Direct air and land routes should be established with ECO countries.
Investment in joint ventures, particularly in energy, infrastructure, and transportation, should be prioritized.
Strengthening e-commerce platforms will promote digital trade, helping SMEs access international markets.
Harmonized economic policies among ECO countries can foster regional unity.
Infrastructure development, especially transit trade policies, should be accelerated to benefit the entire region.
Collaboration on shared challenges like climate change, energy crises, and pandemics should be a priority.

By strengthening trade ties between Pakistan and ECO countries, not only can Pakistan achieve economic growth, but the entire region can also benefit from sustainable development. However, various barriers still need to be addressed. The ECO Chamber of Commerce and Industry can play a pivotal role in promoting trade relations by facilitating trade information, delegations, and organizing trade fairs and exhibitions.