LAHORE: Pakistan and Uzbekistan are embarking on a transformative journey to establish robust banking channels that will significantly facilitate trade transactions between the two nations. This groundbreaking initiative draws inspiration from the successful operational model demonstrated by Uzbekistan Airways, which has effectively launched its services in Pakistan, thereby creating a viable pathway for Uzbek financial institutions to establish their branches in major Pakistani cities, including Karachi, Lahore, and Islamabad.
The establishment of correspondent banking relationships, coupled with the introduction of local currency trading mechanisms and the development of comprehensive trade financing facilities alongside digital payment solutions for seamless cross-border transactions, holds the potential to enhance bilateral trade between the two countries manifold.
These valuable insights were shared during an exclusive interview with Daily Business Recorder by Dilorom Abdullayeva, Representative of Uzbekistan’s Chamber of Commerce and Industry in Pakistan, and Amer Hassan, Head of Business Development at the Pakistan and Uzbekistan Trade Centre.
Uzbek investors want to boost trade, economic ties
During his recent visit to the office of the All Pakistan Textile Mills Association, Alisher Tukhtaev, Ambassador of the Republic of Uzbekistan to Pakistan, emphasized that there exists tremendous potential for joint ventures between Uzbekistan and Pakistan in the textile sector to substantially boost the volume of bilateral trade.
The Ambassador urged Pakistani textile groups to focus their attention on high-value products that are in greater demand in Uzbekistan. He stated that concrete steps are currently being taken by the governments of both Uzbekistan and Pakistan to enhance bilateral trade and derive benefits from mutual potentials.
Ambassador Tukhtaev informed the gathering that many textile groups in Uzbekistan are eager to establish business relations with their Pakistani counterparts. He added that the cheap energy prices and abundant availability of cotton in Uzbekistan offer great opportunities for Pakistani textile groups to explore Uzbek markets both for investment and trade purposes.
The visiting Uzbek envoy was accompanied by Second Secretary Mr. Oybek Kambarov, Third Secretary Ravshan Jumanov, Honorary Consul of Uzbekistan Mr. Najeeb Mushtaq Vohra, and Representative Chamber of Commerce of Uzbekistan Ms. Abdullaeva Dilorom.
The ambassador informed the attendees that both countries have already signed numerous Memorandums of Understanding and agreements for the promotion of trade and industry, focusing particularly on easing accessibility to each other’s markets. He highlighted a series of concrete steps being undertaken by the governments of both countries in coordination with respective trade associations to increase bilateral trade and avail benefits from mutual potential and strengths.
He revealed that more than two Uzbek trade delegations have visited Pakistan during the last six months, and more delegations are expected in the coming months. He extended an invitation to the APTMA delegation to visit Uzbekistan to explore the opportunities offered there and participate in the large number of textile exhibitions and conferences held in the country.
Ambassador Tukhtaev added that direct flights between both countries have already commenced, reducing travel time to merely ninety minutes and extending greater ease in commuting. He further stated that negotiations on trilateral transit trade between Pakistan, Afghanistan, and Uzbekistan are at an advanced stage. He expressed hope that the flow of trade will be accelerated upon the finalization of these talks.
The Ambassador emphasized that both Pakistan and Uzbekistan share a long history and should be considered brothers rather than competitors or rivals. He stressed that both nations should share their resources, knowledge, and wisdom for common benefits. He informed the gathering that Uzbekistan Trade Centers have been opened in Karachi and Lahore, with the next one planned for Islamabad.
He mentioned that both countries have already signed numerous agreements, including the Preferential Trade Agreement, Agreement on Income Tax Convention and Final Protocol. Similarly, an agreement is being signed between the State Bank of Pakistan and Uzbek Bank for cooperation in banking matters.
Chairman APTMA Kamran Arshad highlighted several problems in bilateral trade with Uzbekistan, including the absence of a formal banking channel, difficulties in obtaining and using Letters of Credit, language barriers in labeling goods, difficulties in land routes due to the security situation in Afghanistan, delays in signing the Free Trade Agreement, and delays in the completion of the trans-Afghan railway line.
Kamran emphasized the urgent need for strengthening banking channels between Pakistan and Uzbekistan, early signing of the Free Trade Agreement 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 the two countries.
Copyright Business Recorder, 2025
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