Pakistan is ramping up efforts to position itself as a key trade and transit hub for Central Asia, with a renewed focus on enhancing economic ties with Uzbekistan. On December 2, 2024, Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, met with Alisher Tukhtayev, Uzbekistan’s Ambassador to Pakistan, in Islamabad to explore opportunities for expanding bilateral trade and investment.
In recent weeks, Pakistan has intensified its engagement with the Central Asian Republics (CARs) through a series of high-level visits, investment negotiations, and economic initiatives. This strategic push aims to capitalize on Pakistan’s geographic advantage in connecting the landlocked CARs to global markets.
$1 Billion Trade Agreement
Pakistan and Uzbekistan previously signed a $1 billion trade agreement in February 2023 during the eighth Inter-Governmental Commission meeting in Tashkent. The deal focuses on boosting the exchange of goods and services. In September, former Uzbek Ambassador Oybek Usmanov hinted at a forthcoming $1 billion trade and industrial cooperation roadmap.
Both nations agreed to work closely to unlock their economic potential. “We aim to build a robust partnership that benefits both countries,” the Pakistani Commerce Ministry stated following Khan’s meeting with Tukhtayev.
Infrastructure and Connectivity
Khan lauded Uzbekistan’s rapid infrastructure development, particularly its advanced railway system. “Uzbekistan’s progress is impressive, especially its railway network, which could serve as a model for Pakistan,” he said.
He also highlighted the success of newly launched direct flights between Pakistan and Uzbekistan, noting high passenger occupancy as a sign of growing cooperation. “These flights indicate significant potential for collaboration, particularly in tourism and trade,” Khan added.
Tourism and Visa Reforms
Khan emphasized the need to promote religious tourism and streamline visa processes to facilitate travel between the two nations. He suggested partnerships with local airlines to enhance connectivity and proposed business-to-business (B2B) interactions during Prime Minister Shehbaz Sharif’s upcoming visit to Uzbekistan.
“The idea of hosting a business forum during the Prime Minister’s visit is under serious consideration,” the Commerce Ministry confirmed.
Expanding Trade Opportunities
Ambassador Tukhtayev acknowledged the untapped potential in sectors such as agriculture, food, pharmaceuticals, and tourism. He assured Pakistan of the Uzbek Embassy’s full support in fostering business ties and facilitating coordination.
Strategic Trade Agreements
Pakistan and Uzbekistan established diplomatic relations in May 1992. Uzbekistan, the largest consumer market and the second-largest economy in Central Asia, was the first country in the region to sign a bilateral Transit Trade Agreement (UPTTA) and a Preferential Trade Agreement (PTA) with Pakistan, covering 17 products.
In 2021, bilateral trade between the two countries amounted to $126.05 million, with Pakistan exporting $88.18 million worth of goods to Uzbekistan and importing $37.87 million.
As both nations continue to strengthen their partnership, Pakistan’s strategic push into Central Asia is expected to open new avenues for economic growth and regional connectivity.
