Bilateral trade: APTMA & textile bodies of Uzbekistan reach understanding

LAHORE: All Pakistan Textile Mills Association (APTMA) & Textile Associations of Uzbekistan have reached an understanding to impressively upsurge bilateral trade from the present level of US$114 million to much higher figure.

This understanding was reached in a meeting of Uzbek textile delegation with members and office bearers of APTMA, held at APTMA, Lahore on May 29, 2025. Uzbekistan delegation consisted of Tokhtaev Akobirjon Khakimovich Deputy Chairman Chamber of Commerce, Jumaniyazov Mukhammadjon Bakhramjanovich Deputy Chairman Textile Industry Association, Dushanov Alisher Sherzodovich Head of Investment Department of Kharezm Region, Khamraev Rustam Elmuratovich Head of Department ”Sharof Rashidov Textile Plant” LLC, Abdullaev Shokhboz Founder “Sanam” LLC, Kasimov Davron Founder “Skerton Textile” LLC, Mamadaliev Daniyor Mamatvalievich Head of “Mega Textile” LLC and Abdullayeva Dilorom Ubaydullaevna Represen-tative of CCI Uzbekistan. APTMA was represented by Kamran Arshad, Chairman APTMA, Danish Aslam, Muhammad Ali, Haroon Ellahi, senior executives of APTMA, leading textile manufacturers and exporters and Raza Baqir, Secretary General.

Uzbekistan delegation headed by Tokhtaev Akobirjon Khakimovich, Deputy Chairman, informed APTMA about a series of concrete steps being undertaken by the governments of Uzbekistan and Pakistan in coordination with trade associations of both the countries to upsurge bilateral trade and avail benefits from mutual potential and strengths of both the countries.

He added that this was second visit of Uzbek business delegation to Pakistan in a short span of two months and more delegations are expected in the coming months.

He invited APTMA delegation to visit Uzbekistan and urged them to participate in the Investment Expo being held in Uzbekistan next month.

Khakimovich said that both Pakistan and Uzbekistan share a long history and they are brothers not competitors or rivals. They should share their resources, knowledge and wisdom for common benefits. He informed that Uzbekistan Trade Center has been opened in Karachi and another is being inaugurated today at Lahore and the next one is planned for Islamabad.

The visiting delegation said the two countries have already signed numerous agreements, including an agreement on Income Tax Convention and Final Protocol. Similarly, agreement is being signed between State Bank of Pakistan and Uzbek Bank for cooperation in banking. He stated that flights have been started from Lahore to Tashkent while takes only two hours to reach destination and more flights are being operationalized from Islamabad and Karachi to ease travel between both countries.

Uzbek delegation proposed to sign an agreement of cooperation between APTMA and Uzbek Textile Association and a Memorandum of Understanding (MoU) for setting up an Uzbek trade center in Lahore.

Uzbek team stated that hectic efforts are being made to finalize negotiations on transit trade between Uzbekistan and Pakistan to Afghanistan. He added that it is only 600km from Torkham to Uzbekistan with safe road passage and issuance of driver’s visa is also being expedited to facilitate direct and rapid movement of cargo and persons.

Speaking on the occasion, Chairman APTMA Kamran Arshad highlighted the problems in bilateral trade with Uzbekistan, saying that the issues confronting bilateral trade included logistic issues, obtaining and using Letters of Credit (LC) in trade with Uzbekistan, language barriers in labelling the goods in Uzbek or Russian languages, difficulties in land route due to security situation in Afghanistan, delay in signing of Preferential Trade Agreement (PTA) and delay in completion of trans Afghan railway line.

Kamran highlighted incentive for setting up of industries in Pakistan. He said that Pakistan was strategically located with close proximity to all foreign markets via sea, air or land routes. He added that the goods produced in Pakistan have duty free access to European Union and China and preferential tariff for exports to Malaysia, Gulf and many other countries.

He referred to a series of duties and tax exemptions for setting up of industries in Special Economic Zones (SEZ), Sole Enterprise Zone, Gawadar Free Trade Zone and on import of plant, machinery and raw materials for use in exportable goods.

Kamran said there is a need for strengthening of banking channels between Pakistan & Uzbekistan, as flow of trade is hampered in absence of formal banking channel. He urged for an early signing of PTA, utilization of OIC, ECO, and Shanghai Trade Cooperation platforms for expansion of bilateral trade, joint investment in the textile industry and establishment of joint ventures, frequent exchange of trade delegations, synergies in bilateral trade expansion, mutual capacity building in textile sectors, and bilateral exchange of business delegations to identify trade and investment options as a way forward to solidify trade and investment relations between Pakistan and Uzbekistan, he added.

Raza Baqir extended vote of thanks to the visiting Uzbek delegation at the end of the meeting and hoped that frequency of such visits will facilitate expansion of bilateral trade and joint ventures in all sectors of economy especially textiles.

Copyright Business Recorder, 2025