Pakistan and Uzbekistan Set Sights on $2 Billion Trade Expansion
Pakistan and Uzbekistan are taking concrete steps to significantly deepen their economic partnership, setting an ambitious target to raise bilateral trade to $2 billion in the coming years. The renewed momentum reflects a shared commitment to regional connectivity, trade facilitation, and diversified economic cooperation.
2/3/20261 min read
A New Trade Ambition
During recent high-level engagements under the Pakistan–Uzbekistan Intergovernmental Commission on Trade and Economic Cooperation, officials from both sides reaffirmed their determination to expand trade volumes from the current level of under $500 million to $2 billion. The focus is on removing structural barriers, improving market access, and creating a more predictable environment for businesses.
Expanding the Preferential Trade Agreement
A key pillar of this effort is the expansion of the existing Preferential Trade Agreement (PTA). Both countries have agreed to broaden the list of goods eligible for reduced tariffs, which is expected to encourage greater exports and imports across multiple sectors. This move aims to diversify trade beyond traditional commodities and unlock new opportunities for manufacturers and exporters.
Improving Connectivity and Logistics
Recognizing that trade growth depends heavily on efficient transport, Pakistan and Uzbekistan are also prioritizing regional connectivity. Discussions have centered on improving transit trade arrangements, customs digitalization, and logistics cooperation. Plans to enhance road, rail, and air links are expected to reduce costs, shorten delivery times, and improve supply chain reliability.
Cooperation Beyond Goods Trade
The partnership extends well beyond merchandise trade. Both countries are exploring deeper collaboration in areas such as:
Information technology and digital services
Banking and financial cooperation
Small and medium-sized enterprises
Agriculture and food security
Labor mobility and skills development
Joint working groups and institutional mechanisms are being strengthened to ensure steady progress in these sectors.
Growing Role of the Private Sector
Business-to-business engagement is being actively encouraged, with an emphasis on linking chambers of commerce, organizing trade exhibitions, and facilitating investment partnerships. Officials from both sides have stressed that private sector participation will be critical in translating policy commitments into real economic outcomes.
Disclaimer: This update is shared based on publicly available information. VOTG News is not responsible for any decisions made based on this news. The image is AI-generated only for illustration