Pak-Uzbekistan agree to achieve $1bn trade target

ISLAMABAD: Pakistan and Uzbekistan are committed for achieving the target of $1 billion in the coming years, through enhance the transit and bilateral trade between both sides, says Ambassador of Republic of Uzbekistan to Pakistan, Alisher Tukhtaev.

Currently, both of the countries are actively working on joint measures aimed at further increasing the volume of mutual trade, reaching the milestone of $ 1 billion in the coming years, and accelerating industrial cooperation, the Ambassador said this while talking to Uzbek media.

Both countries are taking specific measures to expand the export and import structure of food, textile, and electrical products, he said.

In particular, to increase trade turnover between the two countries and stimulate trade, “we are conducting negotiations on expanding the list of products within the framework of the Preferential Trade Agreement and improving interbank payments. This will serve to reduce customs payment rates and accelerate mutual trade relations.”

He said that issues of diversifying fast and convenient cargo transportation routes and optimizing customs processes are being developed in cooperation with large transport and logistics companies.

In order to further develop relations between Uzbekistan and Pakistan, both sides have included in work plan the implementation of a number of joint events and projects in the trade and economic, banking and finance, transport and logistics, as well as cultural and humanitarian sectors.

He said that trade turnover between our countries has been steadily growing and as of the end of 2024, the turnover is 404 million.

Alisher Tukhtaev said that Uzbekistan is interested in increasing the volume of agricultural exports to Pakistan, especially in the supply of fruits and vegetables, grain products, and textile products.

At the same time, Pakistan’s potential in the pharmaceutical, textile, construction materials, and information technology sectors is also of great importance for the Uzbek market, he said.

He said that there are broad opportunities for implementing large joint projects in the textile sector and Combing our strengths will help create competitive products in the global market.

He said that agricultural sector have huge potential for the exchange of advanced technologies, joint projects on product processing, as well as for increasing the volume of fruit, vegetable and grain exports and both sides can cooperate to improve food security and reach new markets.

Uzbekistan and Pakistan are also rapidly developing the IT sector. Our countries can focus on creating IT centers, working on joint educational programs and digitalization projects, as well as outsourcing services, he said.

This kind of cooperation opens up great prospects for our economies.

Replying on the new promising projects are planned in the trade and economic sphere, he said that there are plans to develop transit trade through the port of Karachi, as well as to create joint investment funds and this will strengthen trade relations between the two countries.

Improving infrastructure, building logistics centers in the territories of the two countries, opening trading houses and strengthening industrial cooperation are priority areas of bilateral relations in the field of economic diplomacy, he said.

Uzbek envoy said that in addition, both sides are planning to continue the experience of “Made in Pakistan” and “Made in Uzbekistan” national industrial exhibitions held in Tashkent and Lahore in the future, and to increase the number of products displayed.

“We will create the basis for the signing of new investment projects and contracts by organizing business forums with the participation of entrepreneurs from both countries.”

Now both sides are working with the relevant ministries and departments of Uzbekistan and Pakistan to fully implement the provisions of the Transit Trade and Preferential Trade Agreements, increase the volume of mutual trade by expanding the number of preferential products, and create favorable conditions for the free movement of goods and services, he said.

Answering on the role of chambers of commerce and industry of Uzbekistan and Pakistan in the development of mutual trade and investments, he said

the relations between the chambers of commerce and industry of Uzbekistan and Pakistan, and existing mechanisms of cooperation between the business communities of two countries open up great opportunities for the development and strengthening of mutual economic ties.

He said that Chambers of commerce and industry can be the main mediators in facilitating mutual business contacts and implementing joint projects.

The Ambassador said that both of the countries can expand cooperation by coordinating efforts to develop investments in the strategically important infrastructure and energy sectors, creating a favorable investment climate, and implementing joint projects.

He said that there is great potential for regional connectivity initiatives in the infrastructure sector, in particular, within the framework of the Trans-Afghan Corridor.

This corridor will provide reliable transport links between Uzbekistan and Pakistan and facilitate access to the markets of Central and South Asia, he said.

He said that Joint investments in roads and railways, logistics centers, and cargo terminals will help develop trade and strengthen economic ties.

Alisher Tukhtaev said the energy sector is also one of the promising areas, “We can cooperate on projects to develop renewable energy sources, including solar and wind power plants, hydropower, and gas infrastructure.”

These joint initiatives will ensure energy security and accelerate the transition to sustainable energy sources, he said.