Pak-Uzbek trade ties: PM urges business community to cash in on opportunities

ISLAMABAD: Prime Minister Shehbaz Sharif and Uzbekistan’s President Shavkat Mirziyoyev on Friday called on the business community to capitalise on new opportunities, including a 10-year tax exemption for Pakistani traders offered by Uzbekistan, with the goal of raising bilateral trade to USD 2 billion over the next five years.

Addressing the Pakistan-Uzbekistan Business Forum during his two-day official visit, President Mirziyoyev and Prime minister Sharif underscored the positive trajectory of economic ties between the two nations.

Prime Minister Sharif stressed that political goodwill between Pakistan and Uzbekistan must be supported by tangible economic initiatives. “We must move beyond words and focus on actionable results,” he said, pointing to his visit to Tashkent last year as a key moment in boosting bilateral trade, which now stands at nearly USD 450 million annually.

READ MORE: Pakistan, Uzbekistan aim to boost bilateral trade to $2bn within five years

He also referred to a newly signed protocol to establish a joint working group tasked with formulating a five-year action plan aimed at achieving the USD 2 billion trade target. This agreement, he said, would facilitate more direct business-to-business interactions between the two countries.

A major milestone in economic cooperation was the USD 3.4 billion in agreements signed by the private sectors of both nations, PM Sharif noted, adding that the Business Forum itself is an essential platform for furthering economic collaboration in sectors such as science and technology, energy, agriculture, and textiles.

The prime minister also outlined recent steps taken by the government to stabilise Pakistan’s economy, including reducing inflation from 30 percent to single digits, slashing the policy rate, and addressing various economic challenges in 2023.

He further emphasised the growth of Pakistan’s IT sector, which saw exports rise by 18prcent to USD3.8 billion, driven by innovation and increasing global demand for tech services.

PM Sharif reassured Uzbek companies that Pakistan is committed to creating a conducive investment environment, stressing that there would be no bureaucratic hurdles to doing business. “We will remove all obstacles and ensure smooth operations,” he said, noting that Pakistan International Airlines (PIA) would also expand its flight services to boost tourism.

President Mirziyoyev, speaking at the forum, acknowledged the positive impact of his discussions with Prime Minister Sharif in Tashkent last year, but also emphasised that the current trade volume, while promising, was still insufficient. “The business community is the most important bridge connecting our two nations. It is our responsibility as leaders to create the conditions for success,” he said, urging the business community to capitalise on this opportunity.

The Uzbek president further praised Prime Minister Sharif’s leadership and the progress made in bilateral relations, highlighting the growing diversity and depth of the ties between the two countries.

He called upon the stakeholders of both the countries to identify challenges, overcome obstacles, and explore mutually beneficial opportunities for long-term economic collaboration.

In a significant move, President Mirziyoyev extended an invitation to Pakistani investors to explore Uzbekistan’s market, offering a 10-year tax exemption for Pakistani traders.

He also highlighted Uzbekistan’s support for Pakistan in sectors like healthcare, textiles, and the production of surgical instruments and medicines.

On this occasion, Deputy Prime Minister and Foreign Minister Ishaq Dar, along with ministers, senior government officials, and prominent figures from the business community of both countries, were also present.

During the visit, several agreements were signed to enhance cooperation in natural resources, healthcare, transport, and tourism.

Pakistan is set to supply rice and potatoes to Uzbekistan while exporting leather, minerals, and Halal meat.

Pakistani textile exporters are also considering setting up manufacturing plants in Uzbekistan, which would benefit both economies.

The agreements cover areas such as textile production, the Tashkent Leather Zone, mining, and collaboration in agriculture, livestock, and healthcare.

The strengthened ties between Pakistan and Uzbekistan signal a promising future for both countries, with both sides committed to expanding trade and investment opportunities.

Copyright Business Recorder, 2026