By capitalizing on the opportunities for cooperation in trade, investment, connectivity, and tourism, both countries can work towards a more prosperous and interconnected region.
Opinion
Ansar Mahmood Bhatti
Prime Minister of Pakistan Shehbaz Sharif has recently concluded a highly successful visit to Uzbekistan, marking a significant step towards strengthening bilateral relations between the two countries. Upon his arrival in Tashkent, the Pakistani prime minister was accorded a red-carpet welcome, reflecting the warmth and importance of the ties between Pakistan and Uzbekistan.
During the visit, both countries reaffirmed their commitment to enhance the volume of bilateral trade, setting an ambitious target to increase trade from the current $404 million to $2 billion in the near future. The two sides also agreed to explore the vast potential for cooperation in the fields of investment, connectivity, and tourism. This mutual commitment is expected to unlock new opportunities for both nations, fostering economic growth and regional stability.
The strengthening of bilateral ties was a key focus of the one-on-one meeting between Prime Minister Shehbaz Sharif and the President of Uzbekistan, Shavkat Mirziyoyev, followed by delegation-level talks. One of the most promising agreements reached during these discussions was the commitment to expedite efforts to realize the Trans-Afghan Railway project. This ambitious project aims to connect Central Asia with South Asia, offering a game-changing trade corridor that could significantly boost economic integration in the region.
Uzbekistan, the largest of the Central Asian states, holds immense business and cultural potential. The country’s agriculture sector is one of the most developed in the region, particularly in cotton production. Pakistan stands to benefit greatly from Uzbekistan’s expertise and technology in cotton cultivation. With Uzbek technology, Pakistan could potentially double its cotton production at half the current cost, which would have a transformative impact on its textile industry and overall economy. At the same time, Pakistan’s potential in the pharmaceutical, textile, construction materials, and information technology sectors is also of great importance for the Uzbek market.
In recent years, bilateral trade between Pakistan and Uzbekistan has grown significantly, reflecting the dedicated efforts of diplomats on both sides. A noteworthy development in this regard was the commencement of direct flights by Uzbek Air from Pakistan, providing easier access to Uzbek markets and other Central Asian states. The resumption of direct Lahore-Tashkent flights in November 2024 is expected to strengthen business ties and bring the peoples of both countries closer.
To further bolster connectivity, Pakistan should encourage its national flag carrier and private airlines to launch direct flights to Tashkent and other Central Asian destinations. Improved air connectivity will not only facilitate the movement of people but also boost business and tourism activities, ultimately contributing to stronger economic ties and greater regional integration.
There are plans to develop transit trade through the port of Karachi, as well as to create joint investment funds, which of course is a step in the right direction. This will strengthen trade relations between the two countries.
The energy sector is also one of the promising areas. Both countries can cooperate on projects to develop renewable energy sources, including solar and wind power plants, hydropower, and gas infrastructure. These joint initiatives will ensure energy security and accelerate the transition to sustainable energy sources.
Additionally, in September 2024, Uzbekistan introduced a simplified visa procedure for Pakistani citizens. This gave impetus to an increase in the number of tourists, students and entrepreneurs wishing to visit Uzbekistan. Simplification of visas has opened up new opportunities for cultural exchange, acquaintance with historical monuments and cultural traditions, as well as for establishing business ties. The simplification of visas and the establishment of direct flights will have a significant impact on the growth of tourist flows between the two brotherly countries, and strengthening of cultural and humanitarian relations.
The visit of Prime Minister Shehbaz Sharif to Uzbekistan has set a positive trajectory for the future of Pakistan-Uzbekistan relations. By capitalizing on the opportunities for cooperation in trade, investment, connectivity, and tourism, both countries can work towards a more prosperous and interconnected region.
It is anticipated that officials from both sides will leverage all available resources and channels to swiftly translate the commitments made by the Prime Minister of Pakistan and the President of Uzbekistan into reality. Sustained, result-oriented engagements will undoubtedly play a pivotal role in helping both countries achieve the targets set during the leaders’ meeting.
Situated at a highly strategic geographic location, Central Asia serves as a vital bridge connecting South Asia, Europe, and Russia. The region offers immense connectivity opportunities not only among the Central Asian republics but also with Russia, making it a crucial hub for regional trade, economic cooperation, and energy collaboration.
For Pakistan, forging stronger ties with Central Asian countries holds significant economic and strategic importance. While Uzbekistan has already emerged as a key partner in various sectors, Pakistan can further benefit from the expertise and resources of Kazakhstan, Kyrgyzstan, and Tajikistan in fields such as agriculture, mining, tourism, education, technology, and energy infrastructure development. In return, these countries can benefit from Pakistan’s ports, manpower, and expertise in various industrial sectors, creating a mutually beneficial partnership.
One of the most promising aspects of Central Asia is its huge energy potential. The region is blessed with vast reserves of natural gas, oil, hydroelectric power, and renewable energy resources, making it an energy-rich region. On the other hand, Pakistan, being an energy-deficient country, has long been grappling with an energy crisis that has adversely impacted its economy and the daily lives of its people. The ever-increasing burden of expensive energy tariffs has not only strained household incomes but also hampered industrial growth.
In conclusion, strengthening diplomatic, economic, and energy ties with Central Asian countries can not only help Pakistan diversify its energy sources but also boost regional trade and connectivity. By capitalizing on the untapped potential of Central Asia, Pakistan can pave the way for long-term economic stability, regional cooperation, and mutual prosperity.
