Pakistan and Uzbekistan agree to expand bilateral trade to $2bn

Pakistan and Uzbekistan agreed on Wednesday to expand bilateral trade to $2 billion as Prime Minister Shehbaz Sharif met with Uzbekistan President Shavkat Mirziyoyev in Tashkent.

The development comes days after a similar agreement to boost investments to $2bn was reached with Azerbaijan during the premier’s official visit there, which he concluded yesterday as he departed for Tashkent on a two-day state visit.

Pakistan and Uzbekistan have strengthened ties through trade and economic cooperation. A $1 billion trade deal was signed in 2023, and plans for further collaboration, including a roadmap for industrial cooperation, show the two sides’ commitment to boosting regional connectivity.

Earlier today, PM Shehbaz and Uzbekistan President Shavkat Mirziyoyev held a bilateral meeting, which was followed by the signing of several memorandums of understanding (MoUs) between the two countries in various areas.

Addressing a joint press conference with PM Shehbaz, President Mirziyoyev said: “We came to the conclusions on different spheres and mutual trade turnover had exceeded 400 million and we have plans to increase that to $2bn.”

He termed the negotiations between them “very fruitful”, adding that there was a “new direction” for future goals.

The president said: “The modern state of Pakistan is our trusted partner, trusted by time, and a promising ally whose international reputation is steadily growing.

“[…] Despite current global challenges, the honourable prime minister is carrying out tremendous work to ensure peace and stability, improve the living standards of the population and accelerate economic growth.”

Congratulating the Pakistani government on those “achievements”, he noted that the relations between the two countries had been developing “dynamically”.

President Mirziyoyev noted that joint ventures between Pakistan and Uzbekistan have reached 130 while trade houses had been opened in Karachi and Tashkent.

“Air travel has been launched between Tashkent and Lahore,” he highlighted, adding that it was also agreed to open new routes, including flights between Samarkand, Bukhara and Karachi.

He stated that the intergovernmental commission was working effectively while “political consultations, business events and exhibitions of our national products have been successfully organised”.

President Mirziyoyev noted that a “large delegation of leading Pakistani” had arrived in Tashkent, with Uzbek partners participating in meetings with them and holding dialogues on partnership agreements.

Inviting Pakistani companies to work in his country, he said: “I would like to also present to Pakistani companies what the conditions are in Uzbekistan and we are ready to create all the necessary conditions for them to come to Uzbekistan.”

“We confirm our shared commitment to strengthening the bonds of longstanding friendship and for the developing cooperation, we have signed important agreements,” the Uzbekistan president affirmed.

He also announced the visits of the head of Uzbekistan’s central bank to Pakistan and his counterpart, the State Bank of Pakistan governor, to Tashkent.

“We are planning to increase trade turnover to $2bn and we will increase the industrial cooperation, develop transparent logistic connections, and create favourable conditions and incentives for the entrepreneurs,” Mirziyoyev asserted.

He noted discussions were held on “pharmaceuticals, textiles, lead industry, and agriculture” while PM Shehbaz also made proposals on the energy, geology, and mining spheres to “develop those industries and have regional cooperation and access to other countries’ markets”.

Detailing other decisions made during their meeting, he said that a high-level strategic council would be established between the two nations.

“Once in two months, we will have calls over mobile phones. Once a month, all ministries and relevant bodies, in an online format, will be reporting to us on the implementation of those instructions and measures.

“We did not have this kind of approach with [any] other countries,” Mirziyoyev highlighted, adding that the strategic council would ensure the efficient implementation of those directives.

He further vowed increased collaborations between the nations through people-to-people exchanges, cultural events, and festivals.

The president also affirmed his diplomatic support for Pakistan’s stance on “Afghanistan’s social development and resolving the Palestinian issue”.

The president thanked the premier for his “warm words” for the Uzbek people and accepted PM Shehbaz’s invitation to pay an official visit to Pakistan.

Mirziyoyev concluded his address with his well wishes for the upcoming month of Ramazan.

In his address, PM Shehbaz stated that the two leaders had decided to cooperate in the field of mine and minerals, adding that the “potential of investing in each other’s economic zones” was also discussed.

“I find you a very valuable friend and a very very positive partner,” the premier stated as he appreciated the Uzbek president’s “pivotal role” in strengthening bilateral ties.

The prime minister noted Mirziyoyev’s achievements in decreasing Uzbekistan’s level of poverty and increasing foreign investments.

“Through untiring efforts, Pakistan will find its lost place in the comity of nations, but only through hard work,” PM Shehbaz stressed, after highlighting the decline in Pakistan’s inflation and interest rates, along with a rise in IT exports.

“Like the golden domes of Samarkand during sunrise, my dear brother [President Mirziyoyev], your warmth, hospitality and sincerity are shining brightly despite the snowfall,” the premier said at the outset of his address.

He noted that Pakistan and Uzbekistan shared centuries-old bonds, while e Pakistanis studied the Sufi saints of Samarkand in their school textbooks.

‘Detailed negotiations’ held on joint railway project

Meanwhile, talks on a planned railway link between Pakistan and Uzbekistan that would traverse Afghanistan also progressed further as PM Shehbaz and President Mirziyoyev reaffirmed their commitment to the project.

The two countries had signed an agreement in July 2023 for the “Uzbekistan-Afghanistan-Pakistan (UAP) Railway project”.

The premier said: “We are going to […] achieve jointly Trans-Afghan railway connectivity which is going to be a game changer not only for Pakistan and Uzbekistan but in the entire region.

“I know you are very committed to this project,” he said, addressing the Uzbek president sitting next to him.

Speaking earlier, President Mirziyoyev said the two leaders today held “detailed negotiations for the first time” on the Trans-Afghan railway. “We shared the open challenges […] and concluded the solutions to those problems regarding the transport and the logistics.”

Mirziyoyev also announced the formation of a separation committee led by him and PM Shehbaz.

“We know that this is our future,” he said, explaining that high-speed railway routes would increase bilateral trade and the travel of people between the countries.

“There were some problems that we were not raising openly but today we had open discussions, we raised them openly,” the Uzbek president said.

MoUs signed on news, youth, travel

Multiple MoUs to bolster cooperation were signed between Pakistan and Uzbekistan at a ceremony attended by PM Shehbaz and President Mirziyoyev.

The MoUs and agreements included an MoU between Tashkent and Lahore, a cooperation agreement between news agencies, an inter-agency agreement on youth affairs, and an agreement on cooperation in science and technology, Radio Pakistan reported.

It added that the two countries also signed agreements in the fields of visa-free travel for diplomatic passport holders, military intelligence, internal affairs, professional and technical training, as well as diplomats’ training.

The two leaders also signed a joint declaration by their countries and the protocol for establishing the Pakistan-Uzbekistan High-Level Strategic Council.

Earlier today, PM Shehbaz was welcomed by President Mirziyoyev at the Tashkent Congress Centre, where he was given a formal welcome reception.

The national anthems of Pakistan and Uzbekistan were played, followed by the guard of honour by smartly turned-out contingents of the Uzbek armed forces, which the prime minister reviewed along with President Mirziyoyev.

Later, PM Shehbaz and President Mirziyoyev introduced their respective delegations to each other before proceeding to the bilateral meeting and delegation-level talks.

In their meeting, both leaders were set to “discuss all areas of bilateral cooperation including connectivity, economic, trade, investment, energy, defence and security, regional stability, and education”, according to an earlier statement issued by the Foreign Office.

The leaders were also to exchange views on regional and international issues of mutual interest, the press release said.

Later today, the premier would visit the Techno Park in Tashkent to observe Uzbekistan’s construction industry, according to APP.

The premier is also set to address the Pakistan-Uzbekistan Business Forum, where “leading businessmen from both sides” would participate and hold B2B meetings to further enhance bilateral trade.

PM Shehbaz’s visit “underscores Pakistan’s commitment to further strengthen its ties with Uzbekistan, through fostering greater economic collaboration and exploring new avenues of partnership, as part of the strategic vision for regional integration and economic prosperity”, the FO had noted.

“Pakistan and Uzbekistan are bound together by common bonds of history, culture, religion, and their aspirations for peace and development,” it asserted.

The prime minister is accompanied by a high-level delegation, including Deputy PM Ishaq Dar, Commerce Minister Jam Kamal Khan, Investment and Privatization Minister Abdul Aleem Khan, Information Minister Attaullah Tarar, and Special Assistant to PM Tariq Fatemi.

PM looks forward to ‘mutually advantageous cooperation’

Upon his arrival in the capital of Tashkent yesterday, PM Shehbaz was received by his Uzbek counterpart Abdulla Nigmatovich Aripov.

Uzbekistan’s Foreign Minister Bakhtiyor Saidov, Tashkent’s Mayor Shavkat Umurzakov, Uzbek envoy Alisher Takhitayev and his Pakistani counterpart Ahmed Farooq, along with senior diplomatic and government officials, were also present.

PM Shehbaz then visited the Indepe­nd­e­nce Monu­ment in Tash­kent, where he laid a floral wreath and was briefed about the 3000-year-old history of the Uzbek nation and its heroes, state-run Radio Pakistan reported.

The visit underscored the shared historical and cultural ties be­t­ween Pakistan and Uzb­ekistan while reaffir­ming the commitment to deepening bilateral relations, said a statement.

The premier expressed his admiration for Uzbekistan’s progress and resilience, drawing parallels with Pakistan’s struggle for independence and development.

In his remarks, PM Shehbaz had said, “The Independence Monument stands as a testament to the courage and determination of the Uzbek people. Pakistan and Uzbekistan share a common vision for peace, prosperity, and regional connectivity. This visit is a reminder of our shared values and the need to work together for a brighter future.”

“Wheels down in Uzbekistan. Deeply touched by the grand reception at the airport and the warm welcome by my dear brother Prime Minister Abdullah Aripov,” the premier had said on X after his arrival there yesterday.

“Uzbekistan being the crown of Central Asia, breathes history through the grandeur of its ancient cities, timeless art, and magnificent architecture. Looking forward to my engagements to enhance our common desire to strengthen these bonds of friendship through trade, investment and mutually advantageous cooperation.”

Earlier this month, Ambassador Tukhtayev had met with the Quetta Chamber of Commerce and Industry, where he stressed that Uzbek investors were keen to explore investment opportunities in Pakistan, particularly Balochistan.

Last month, the envoy had announced his government’s plan to introduce a new direct flight route between Tashkent and Karachi this year, describing it as a “significant step to foster closer ties between the two nations”.

In May last year, the foreign ministers of both countries met, underscoring their countries’ commitment to the swift completion of a planned railway link that would traverse Afghanistan.

The bilateral trade between Pakistan and Uzbekistan has grown substantially over the last few years, from $27 million in 2019-20 to $126m in 2022-23.