Pakistan, Uzbekistan eye increasing bilateral trade to $2 billion within two years

• Pakistani PM’s aide on commerce, Ihsaan Afzal, meets Uzbekistan’s deputy investment minister in Tashkent
• Uzbek delegation identifies textiles, leather, pharmaceuticals as sectors for joint ventures, technology transfer

ISLAMABAD: Senior officials from Pakistan and Uzbekistan have agreed to fast-track their countries’ Preferential Trade Agreement (PTA) to raise bilateral trade to $2 billion within the next two years, Pakistan’s commerce ministry said on Friday.

Uzbekistan was the first Central Asian nation with which Pakistani officials signed a bilateral Transit Trade Agreement (UPTTA) and a Preferential Trade Agreement (PTA) covering 17 items. The PFA was signed between the two countries in March 2022 and became operational in 2023.

The two sides discussed the PFA again in Tashkent on Dec. 11 when Ihsaan Afzal, coordinator to the Pakistani prime minister on commerce and industry, held in-depth talks with Shohrukh Gulamov, Uzbekistan’s deputy minister of investment, industry and trade.

“Both sides reaffirmed their firm commitment to elevate bilateral trade to $2 billion within the next two years, in line with the vision of the Prime Minister of Pakistan and the President of Uzbekistan,” Pakistan’s commerce ministry said.

Gulamov confirmed that the two countries are actively finalizing a “significantly broadened product list,” stating that a formal understanding on the expanded PTA is expected “very soon.”

Afzal stressed the need to standardize documentation, harmonize customs procedures and inspection protocols. The Pakistani officials also called for establishing digital connectivity to reduce delays and enhance trade predictability.

Gulamov assured his full support to Pakistan, confirming that technical teams on both sides are working to operationalize an Electronic Data Interchange (EDI) system between the relevant authorities of the two countries.

“The Uzbek side identified textiles, leather, pharmaceuticals and surgical instruments as key sectors where Uzbekistan seeks joint ventures and technology transfer from Pakistan,” the statement said.

Both delegations agreed to intensify business-to-business contacts and exchange of trade delegations to translate political will into “concrete commercial results.”

Uzbekistan, Central Asia’s largest consumer and its second-largest economy, is central to Pakistan’s plans to establish itself as a key transit and trade hub to landlocked Central Asian states.

Islamabad has increasingly eyed greater trade and investment relations with regional allies as it targets sustained economic growth.