TEHRAN - Iran and Kyrgyzstan must establish financial and banking agreements to unlock the full potential of bilateral trade, said Ghadir Ghiafeh, deputy head of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) during a meeting with his Kyrgyz counterpart Mamadsadek Bekirov.

Speaking at the joint session, Ghiafeh said the current $106 million trade volume between the two countries does not reflect the true capacity of their economic ties. He urged both chambers of commerce to work alongside small and medium-sized enterprises (SMEs) to develop a clear roadmap for increasing bilateral trade.

Ghiafeh highlighted Kyrgyzstan's economic advantages, including its membership in the World Trade Organization, and stressed the country’s untapped potential for collaboration with Iran. He noted that while bilateral trade grew by 10 percent recently, the growth remains modest given the scale of possible cooperation.

The implementation of the Iran-Eurasian Free Trade Agreement, set to take effect on May 15, could mark a turning point in trade relations, Ghiafeh added.

He emphasized that banking and financial agreements are crucial to expanding bilateral cooperation and called for stronger private sector connections through participation in trade expos in both countries.

Joint investments in logistics and transportation, he said, would help reduce the cost of goods and increase trade efficiency. He also pointed to Kyrgyzstan's geographic proximity to China, which could be leveraged for efficient transfer of Iranian goods to Kyrgyz and Chinese markets.

Tourism and overseas farming were cited as additional promising sectors. Ghiafeh noted Kyrgyzstan's rich natural resources, fertile land, and abundant water, and proposed Iranian investment in agriculture to produce crops for export to Iran and other countries.

“There is clear political will at the leadership level in both countries to deepen ties,” he said, calling for win-win industrial and commercial joint ventures.

Bekirov, Vice President of the Kyrgyz Chamber of Commerce, agreed that economic cooperation must serve the interests of both sides. He acknowledged the current trade balance favors Iran, but said efforts should be made to achieve a more equitable exchange.

He emphasized the need to raise awareness among businesses about each country’s trade opportunities, and called on chambers of commerce to provide updated information to the private sector. Bekirov also said logistical and financial issues must be resolved through government action.

To enhance trade security, Bekirov proposed establishing a joint Iran-Kyrgyzstan chamber of commerce, opening trade centers in Tehran and Bishkek, and organizing reciprocal visits to each other’s trade fairs.

Iran and Kyrgyzstan held the 14th meeting of their Joint Economic Committee in Tehran, on April 28-29, aiming to expand bilateral ties across economic, scientific, cultural, and technical sectors.

Senior officials from both countries, including Iran’s Agriculture Minister Gholamreza Nouri Ghezeljeh and Kyrgyz Economy and Commerce Minister Sydykov Bakyt Tolomushevich, attended the meeting, which emphasized boosting trade and investment cooperation.

At the opening ceremony, Nouri highlighted agriculture, industry, energy, and technology as key areas of collaboration. He expressed hope that the session would lay the groundwork for a significant rise in economic exchanges between the two nations.

Sydykov echoed these sentiments, noting the long-standing ties between Iran and Kyrgyzstan since 1992 and underscoring multilateral cooperation through organizations such as the Shanghai Cooperation Organization and the Eurasian Economic Union.

Iran’s First Vice President Mohammad Reza Aref met with Kyrgyz officials on the sidelines of the meeting, stating that Tehran is ready to expand cooperation in technical and engineering services and technology transfer. He pointed to the Eurasian Free Trade Agreement as a mechanism to deepen both bilateral and multilateral ties.

“The economies of our two countries complement each other, particularly in agriculture,” Aref said, calling for greater involvement of the private sector in realizing trade potential. He also called for removing administrative hurdles and accelerating direct air links and visa facilitation.

Aref recalled his past visits to Kyrgyzstan and emphasized the shared cultural and historical heritage that supports closer ties. He said the current session of the commission could pave the way for a new era in bilateral cooperation.

During the closing session, Iran’s agriculture minister said the joint committee meeting coincided with the 7th Iran Export Capabilities Expo (EXPO 2025), providing a platform for business networking. He welcomed a memorandum of understanding signed during the meeting to establish a joint investment committee and called for continued efforts to finalize practical agreements.

The two sides reached consensus on joint fish farming, livestock feed production, and cooperation in plant and animal quarantine. They also discussed Kyrgyz investment in Iranian ports, particularly within the framework of the International North–South Transit Corridor (INSTC).

Nouri emphasized the need to bring economic cooperation in line with political ties and said the cultural affinity between the two countries could be harnessed for expanded exchanges in energy, sports, and cultural sectors.

Kyrgyz Economy Minister Sydykov said his country had seen nine percent annual economic growth over the past three years, including a 13 percent rise in the first quarter of this year. He noted Iran’s role in joint projects and said a more robust private-sector partnership could help realize further gains.

Sydykov also extended condolences to Iran following a recent explosion at Shahid Rajaee port in Bandar Abbas, expressing solidarity with the Iranian people.

According to Iranian officials, bilateral trade between the two countries rose by 31 percent last year. The committee reviewed progress made in recent years and outlined new opportunities for cooperation in investment, knowledge sharing, and economic development.

One of the key outcomes of the meeting was the signing of a memorandum of understanding to form a joint investment committee. Iranian and Kyrgyz authorities also agreed to launch a bilateral investment office to streamline future ventures.

The two-day committee meeting was held on April 26 and 27 in Tehran, with discussions centered on trade facilitation, port access, export lists, joint infrastructure projects, and transit cooperation under the INSTC framework.

Meanwhile, Iran’s National Development Fund (NDF) signed a €50 million credit line agreement with Kyrgyzstan on April 27.

As reported, the credit line will be made available through a bank selected by the exporter, enabling Iranian exporters of technical and engineering services to finance their projects in Kyrgyzstan.

The agreement was signed by Mehdi Ghazanfari, Chairman of the NDF Executive Board, and Bakyt Sydykov, Kyrgyzstan’s Minister of Economy and Commerce.

On the sidelines of the signing ceremony, Ghazanfari announced the possibility of doubling the credit line to €100 million, depending on project performance.

He recalled that nearly two years ago, the two sides signed an initial memorandum of understanding in Bishkek, under which €50 million in financing was earmarked for buyers of Iranian technical and engineering services.

He added that Kyrgyz authorities were expected to identify low-risk, high-return projects and propose them for implementation by Iranian companies.

"This investment has two main benefits; on the one hand, it contributes to Kyrgyzstan's economic growth through the implementation of construction projects, and on the other hand, it activates the production chain in Iran, as Iranian contractors will be required to use Iranian goods and equipment", the official reiterated.

Ghazanfari said that during Sunday's meeting, the two sides agreed to re-establish a joint investment committee to oversee the projects.

Referring to the need for high quality projects, he added: "The quality of project implementation is very important for the National Development Fund. We are seeking to create a mechanism where real representatives of the Iranian private sector, who prioritize national interests, are present in the joint committee so that the interests of the two countries are properly protected."

Ghazanfari stated that the goal is to fully absorb the first 50 million euros by 2025, and if successful, the second 50 million euros will also be allocated, adding: "Exporting technical and engineering services will not only generate foreign currency for the country, but will also develop factories and create jobs."

In response to some concerns about investing the fund's resources abroad, the official said: "These foreign currency resources return to the country along with the profits, and this process not only does not harm domestic needs, but also strengthens domestic production by developing the export of technical and engineering services."

During the ceremony, Minister Sydykov said: "Kyrgyzstan and Iran have always had strong relations, and this deal will pave the way for the development of bilateral economic and technical cooperation."

Emphasizing the importance of this deal, he said: "We in our team are adopting the best working methods to attract investment. The demand for infrastructure projects in Kyrgyzstan is very high, and this joint cooperation with Iran will open a new chapter in the economic relations of the two countries."

He emphasized the strong and expanding economic ties between the two countries, noting that current cooperation remains far below their potential. The minister said the new memorandum would bolster investment, highlighting Kyrgyzstan's steady economic growth over the past three years, controlled public debt, and an inflation rate between five and seven percent. He also pointed to ongoing economic reforms and currency stability in Kyrgyzstan.

The official thanked the NDF for organizing the meeting and announced that a follow-up session to sign an additional cooperation document would be held the next day. He noted that Kyrgyzstan already has successful infrastructure cooperation with the NDF and that development funds from countries like Russia are active in Kyrgyzstan at low interest rates. Project risks, he said, are managed under the supervision of a national committee.

Ghazanfari welcomed reports of Kyrgyzstan’s strong economic growth, calling it a sign of effective policymaking, particularly in the economic sector.

He stressed the importance of informing Iranian technical and engineering companies about the business environment in Kyrgyzstan, where knowledge gaps persist among the Iranian private sector.

Regarding the terms of the memorandum, Ghazanfari explained that Iranian companies would submit their contracts to the NDF to access financing. The funds would be disbursed through Iranian banks directly to the contractors, meaning the NDF would not operate inside Kyrgyzstan; instead, Iranian private firms would enter the Kyrgyz market with NDF backing.

He concluded by stating that if Iranian contractors perform well in Kyrgyzstan, the credit line could be doubled, reaching a total of $100 million.

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Photo: ICCIMA Deputy Head Ghadir Ghiafeh (R) meet with his Kyrgyz counterpart Mamadsadek Bekirov in Tehran on Thursday, May 1.