Potential for trade and economic connectivity and the analysis of the factors impeding connectivity: Options and strategies for improving trade and economic connectivity.
Dear conference participants,
Dear moderator,
First of all, I would like to express my gratitude for the invitation to participate in this highly respected forum, for the hospitality extended, and for creating the most favorable conditions for a fruitful exchange of views.
In my speech, I would like to touch upon the priority areas of regional cooperation for Turkmenistan, primarily in the areas of economics, energy, and transport. I also believe it is appropriate to examine the dynamics of the Turkmen-Pakistani partnership, which has been gaining momentum in recent years.
It should also be noted that geoeconomic strategy is a priority of Turkmenistan’s foreign policy and diplomacy. In this context, regional cooperation occupies a central place, with particular attention being paid to trade and economic partnerships and the implementation of major energy and transport projects. The “Concept of Turkmenistan’s Foreign Policy for the Period 2022-2028” prioritizes continued efforts to create favorable international conditions for the development of the national economy, expand and diversify trade and economic ties with foreign countries, and provide political and diplomatic support for an “open door” foreign policy strategy to attract foreign investment, advanced technologies, and innovative solutions.
It should be noted that the Concept essentially provides a basis for the systematic coordination of foreign policy measures based on current international positions that support the national interests of the modern Turkmen state.
Therefore, this Concept clearly defines Turkmenistan’s priorities in international trade and economic relations. These priorities define the main directions for developing relations with countries in various regions of the world, including Southeast Asia, the Near and Middle East, the European and African continents, and North and South America. Economic diplomacy, as an integral part of the entire complex of foreign policy implementation, is carried out mainly in two directions, namely on a bilateral and multilateral basis, as well as in the format of international organizations.
Regarding bilateral relations, our country, guided by national interests and a neutral foreign policy, pursues mutually beneficial and equitable political, economic, and cultural cooperation with all states.
One of the priorities of multilateral diplomacy is cooperation in the “Central Asia+” format, where, along with issues of peace and security, prospects for sustainable economic development are discussed. Furthermore, Turkmenistan actively participates in the Consultative Meetings of the Heads of State of Central Asia.
As is well known, in the modern world, most regions are experiencing a decline in economic growth, and instability in international commodity, stock, and financial markets is observed. Development disparities between different regions are growing, negatively impacting the overall development of the global economy.
In this context, Turkmenistan is pursuing innovative development, as well as a digital, circular, and “green” economy as a whole. Its primary focus is on cooperation with foreign countries in the field of high technology, the introduction of modern advanced knowledge and management solutions, and the structural diversification of trade and economic relations.
Among the important tasks identified are the creation of favorable conditions that will contribute to the stable development of the economy of Turkmenistan, an increase in the standard of living of the population, as well as active participation in global economic relations, further development and diversification of foreign economic relations, and the attraction of large investments.
Turkmenistan’s international energy cooperation is a separate area. Key objectives include strengthening energy security at the regional and broader international levels, protecting the interests of producing, transit, and consuming countries, diversifying energy resources, and supporting the creation of diversified, stable, and secure fuel export routes. Particular attention is paid to developing bilateral and multilateral cooperation among Caspian countries based on the Convention on the Legal Status of the Caspian Sea, taking into account Turkmenistan’s long-term national interests in energy, transport, environmental protection, and economic security.
Turkmenistan continues consistent work on the implementation of the Turkmenistan-Afghanistan-Pakistan-India gas pipeline, power transmission systems, and the Turkmenistan-Afghanistan-Pakistan fiber-optic communication system.
As part of this comprehensive work, Turkmenistan is expanding cooperation with international organizations such as the Energy Charter, the International Energy Agency, and the International Renewable Energy Agency.
Turkmenistan is implementing major transport and transit projects that require effective transport diplomacy.
Developing transport and communications infrastructure and access to new markets is of paramount importance not only for Turkmenistan but for the entire region. Developing logistics corridors and strengthening trade ties directly contributes to regional integration. Given that Turkmenistan is one of the key and promising hubs for transport and transit partnerships between Asia and Europe, new positive and convenient opportunities are envisaged for attracting foreign partners to our country’s land and sea transport infrastructure. To this end, the information and communications component of international transport, logistics infrastructure, and transport services will be further developed.
In this regard, targeted efforts are underway to establish Turkmenistan as a transcontinental multimodal transport and logistics hub linking the strategic North-South and East-West directions. Cooperation is underway on the practical implementation of the Lapis Lazuli (Afghanistan-Turkmenistan-Azerbaijan-Georgia-Turkey) and Uzbekistan-Turkmenistan-Iran-Oman transport projects, as well as the effective use of existing regional routes.
Turkmenistan is consistently developing international partnerships to attract foreign investment and mutually beneficial cooperation within regional and international financial systems. In this regard, significant importance is attached to cooperation with such organizations as the Organization for Economic Cooperation and Development, the International Monetary Fund, the World Bank Group, the European Bank for Reconstruction and Development, the Asian Development Bank, the Islamic Development Bank, and others.
Turkmenistan expresses its intention to continue implementing measures to join the World Trade Organization (WTO). The country’s ultimate goal in its interaction with the WTO is to become a full member of the Organization, which is also envisioned in the recently approved Program “Revival of a New Era of a Powerful State: National Program for Socioeconomic Development of Turkmenistan in 2022–2052,” as well as in Turkmenistan’s Foreign Trade Strategy for 2021–2030.
To this end, a Government Commission is working to study issues related to Turkmenistan’s accession to the WTO, and consultative meetings are regularly held with the UN Economic Commission for Europe (UNECE) on advancing the WTO accession process and the WTO Trade Facilitation Agreement.
In July 2020, Turkmenistan received observer status in the WTO, and in February 2023, during the regular meeting of the WTO General Council, a decision was made to grant Turkmenistan accession status (“active observer”) to the WTO.
Investment attractiveness is also supported by indicators from the international rating agency Fitch Ratings.
According to Fitch, the country’s sovereign balance sheet remains one of the strongest among countries in the ‘BB’ and ‘B’ categories. Turkmenistan has the highest net foreign assets to GDP ratio and one of the lowest public debt ratios. The presence of the world’s fourth-largest natural gas reserves plays a significant role.
In August 2025, the agency affirmed Turkmenistan’s long-term foreign currency issuer default rating at ‘BB-‘ with a stable outlook.
Fitch forecasts that Turkmenistan’s net foreign assets will reach 50.8% of GDP by 2027. The country’s foreign exchange reserves are estimated to be among the highest in the region, covering more than 52 months of external payments.
Turkmenistan’s sustainable GDP growth rates are maintained at 6.3% or more annually.
Turkmenistan places particular emphasis on expanding international partnerships to strengthen and develop the private sector in the Turkmen economy. In our country, support for the private sector is carried out under the national motto: “Entrepreneurs are the golden fund of our country.”
As esteemed President Serdar Berdimuhamedov emphasizes, favorable legal, economic, financial, and social conditions for the development of small and medium-sized businesses have been created in modern Turkmenistan. Thanks to state support, entrepreneurs are making a significant contribution to strengthening the country’s economic potential. At the state level, attention and support for the development of small, medium, and large businesses are growing, and we will continue to pay special attention to increasing the share of the private sector in the national economy. Investment policies aimed at supporting youth business initiatives and developing industrial structures in the country are increasingly being intensified.
By the end of 2024, the private sector’s share of Turkmenistan’s economy, excluding the fuel and energy sector, was 72.8%. This is 1.5 percentage points higher than the 2023 figure.
According to official data, since the establishment of the Union of Industrialists and Entrepreneurs in 2008, its members have implemented more than 5,300 projects worth approximately $28 billion. Approximately 425,000 jobs have been created.
Dear conference participants,
Today, there is a recognition that Central Asia needs its own large-scale program that will unite the efforts of all countries in the region to build sustainable ties with the global community. As some experts have noted, it could be called, for example, “Central Asia Connectivity” (CA Connect). This concept envisions not only the construction of roads and pipelines, but also the development of digital infrastructure, green energy, and human capital—in other words, the creation of a unique Central Asian “gateway,” a single entry point to the region’s market and, simultaneously, its access to external markets.
These ideas were voiced during the recent Turkmenistan Investment Forum on September 18-19 in Avaza, where it was noted that today it is necessary to develop a common vision for the future. This is also relevant for broader regional partnerships.
Dear conference participants,
I would like to say a few words about the growing momentum of constructive cooperation between Turkmenistan and Pakistan.
In 1991, Pakistan recognized Turkmenistan’s independence, and official diplomatic relations between the countries were established on May 10, 1992.
It is deeply symbolic that it was in Pakistan’s capital, Islamabad, in March 1995, during its participation in the 3rd Economic Cooperation Organization summit, that Turkmenistan first announced its intention to initiate this international document.
Pakistan actively supported Turkmenistan in 1995, when the UN General Assembly Resolution granted our country the status of a permanently neutral state.
In subsequent years, our country’s international initiatives and proposals aimed at further strengthening the foundations of peace and security also received active support and understanding from Pakistan. In December 2008, the Islamic Republic of Pakistan co-sponsored the UN General Assembly Resolution on Reliable and Stable Energy Transit and its Role in Sustainable Development, which was adopted at the initiative of Turkmenistan.
The active interstate dialogue between our countries has recently become consistent. Turkmenistan and Pakistan actively cooperate on critical global development issues and within a number of authoritative international and regional organizations. Our countries hold constructive positions on global and regional issues, and their approaches coincide or are similar on many pressing contemporary issues.
We know that our Pakistani partners’ strong interest in close cooperation with Turkmenistan is primarily determined by such important factors as our country’s socio-political stability and its enormous economic and resource potential. Our country’s advantageous geopolitical and geostrategic position at the intersection of continents and regions is also crucial for constructive international cooperation. The Turkmen leadership’s policy of actively integrating the country into the international system, including by developing ties with neighboring regions, serves as a key foreign policy vector, pointing to a constructive path for international development.
On June 30, 2025, President Serdar Berdimuhamedov received the newly appointed Ambassador Extraordinary and Plenipotentiary of the Islamic Republic of Pakistan to Turkmenistan, Faryal Leghari, who presented her credentials to the head of state.
As noted during the meeting, our countries and peoples are bound not only by friendly and fraternal relations, but also by shared spiritual, cultural, and historical values. As emphasized during the meeting, Pakistan is one of Turkmenistan’s most important partners in the South Asian region. Currently, cooperation between Turkmenistan and Pakistan is successfully developing in the political, diplomatic, trade, economic, energy, transport, educational, cultural, and humanitarian spheres.
Trade, economic, and energy cooperation occupy a special place on the agenda of Turkmen-Pakistani relations.
Our countries are currently implementing major regional energy and communications projects, in particular, the construction of the Turkmenistan-Afghanistan-Pakistan-India transnational gas pipeline, as well as a fiber-optic communication line and power transmission line along the Turkmenistan-Afghanistan-Pakistan route.
In this regard, the head of state emphasized that these projects will ultimately contribute to the socioeconomic development of the entire region. As Ambassador Leghari emphasized in her article published in the central newspaper Neutral Turkmenistan on September 23, 2025, “In the past, there have been 19 visits by Pakistani delegations at the level of heads of state and government, 28 visits at the ministerial level, and five exchanges of high-level delegations. Turkmenistan has conducted four high-level visits, 10 ministerial visits, and one parliamentary visit.”
Institutional cooperation mechanisms are strengthened by 48 existing memoranda of understanding. Additional agreements in the areas of trade, multimodal logistics, including seaports, culture, education, and tourism are under preparation.
Economic cooperation is primarily focused on energy, transportation, business, and the textile industry.
As the Ambassador noted, “Joint projects such as the TAPI gas pipeline and the TAP energy project have become an important factor in bringing the two countries closer together in the energy sector. Pakistan highly values Turkmenistan’s strategic energy resources and its leading role in shaping the country’s energy policy, considering it a reliable regional energy supplier.”
Pakistan offers new and profitable trade and transport routes connecting Turkmenistan with Pakistan’s domestic markets and providing access to regional and global markets through the ports of Karachi and Gwadar.
World-class Pakistani companies offer logistics and infrastructure services that can significantly strengthen bilateral and regional connectivity through Afghanistan and provide the shortest overland route to the warm waters of the Arabian Sea.
Pakistan already offers Turkmen entrepreneurs the opportunity to obtain a business visa within 24 hours to facilitate trade. Textile trade is an important area of bilateral economic relations. Turkmen cotton, yarn, and wool can be exported to Pakistan, while Pakistani textiles and clothing can find a market in Turkmenistan. The similarities between Turkmen and Pakistani women’s fashion make it an ideal platform for collaboration between designers and for hosting fashion shows and exhibitions that showcase historical trends passed down over centuries among Turkmens from Central Asia to Pakistan.
Diplomatic dialogue between Turkmenistan and Pakistan is ongoing. In particular, a number of important meetings have taken place in recent months alone.
One such meeting was held on July 31, 2025, between the Ambassador of Turkmenistan to Pakistan and Muhammad Ali Durrani, a high-ranking politician and head of the Pakistan Diplomatic Friendship Group. During the meeting, the parties expressed mutual interest in further strengthening cooperation and expanding bilateral trade and economic relations. In this context, proposals were made to hold joint exhibitions, investment forums, and exchange business delegations. At the end of the meeting, the parties confirmed their mutual interest in developing bilateral dialogue and strengthening partnerships.
On August 11, 2025, Turkmenistan’s Ambassador to Pakistan, Atajan Movlamov, met with Pakistan’s Federal Minister of Finance and Revenue, Senator Muhammad Aurangzeb, to discuss bilateral cooperation in the financial and economic sphere. The agenda focused on accelerating the implementation of the TAPI gas pipeline project (Turkmenistan-Afghanistan-Pakistan-India). The parties also discussed expanding trade and economic ties, stimulating mutual investment, and creating favorable conditions for business activity.
In August 25, 2025, political consultations were held in Ashgabat between the foreign ministries of Turkmenistan and the Islamic Republic of Pakistan. Along with political and diplomatic issues, special attention was paid to the importance of trade and economic cooperation, which occupies a central place in Turkmen-Pakistani relations.
The parties noted the importance of the work of the Joint Turkmen-Pakistani Intergovernmental Commission on Economic Cooperation and the implementation of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) transnational gas pipeline project, which is seen as an important step in strengthening energy and transport connectivity in the region. The parties also discussed ways to improve the legal framework for cooperation and promote joint projects in the energy and transport sectors.
On October 1, 2025, a meeting was held in Islamabad between the Ambassador of Turkmenistan to Pakistan, Atajan Movlamov, and Shaheriyar Memon, Coordinator for Foreign Relations, Business, and Trade Contacts within the framework of the Pakistani Prime Minister’s Youth Program.
The meeting, held at the Embassy of Turkmenistan, focused on exploring new ways to strengthen trade and economic relations and expand the partnership between the two countries.
The key topic of discussion was the development of energy ties and the implementation of strategic projects critical to regional integration and energy security. The Ambassador reported on the progress of construction of the TAP (Turkmenistan-Afghanistan-Pakistan) power transmission line.
Particular attention was paid to Turkmenistan’s innovative achievements. The parties discussed the construction of the environmentally sustainable and innovative city of Arkadag, which is positioned as a model for “smart” urban development in the region.
Most recently, on October 29, 2025, a meeting with a Pakistani delegation led by Senator Nasima Ehsan, Chairperson of the Senate Committee on Delegated Legislation, was held at the Embassy of Turkmenistan in Islamabad. This was reported on the website of the Turkmen diplomatic mission.
The parties emphasized the strategic importance of the TAPI gas pipeline and the TAP power transmission line under construction. The relevance of these projects for Pakistan’s Balochistan province was noted, as the region urgently needs natural gas and electricity to stimulate its economic development.
In conclusion, I would like to note that the Central Asian region, and indeed the broader region of so-called Greater Central Asia, holds great potential for developing mutually beneficial relations, primarily in the areas of trade, economics, investment, infrastructure, and industry.
Therefore, engaged dialogue, including this forum, will undoubtedly make a constructive contribution to a fruitful regional partnership between our countries and peoples.
Thank you for your attention. /// nCa, 17 November 2025