ISLAMABAD: Bilateral trade between Pakistan and Uzbekistan is expected to increase significantly during the current fiscal year as traders from both sides have signed business deals worth $50 million during the last five months, WealthPK reported.
Total trade volume between Pakistan and Uzbekistan was recorded $57.61 million in last fiscal year (2020-21) with an increase of 113.21% over the preceding year (2019-20) when bilateral trade volume remained $27.02 million.
In July last year, Trade Development Authority of Pakistan (TDAP) and the Ministry of Commerce organised Pakistan-Uzbekistan Business Forum (PUBF) in Tashkent, Uzbekistan.
More than 100 Pakistani exporters from textile, leather, sports goods, logistics, IT, pharmaceutical and fruits and vegetables sectors were provided a platform to interact with Uzbek business community. The Ministry of Commerce has prepared a report on the business forum which says that trade agreements worth $50 million have been signed so far after the forum was held. The ministry said that these agreements are apart from those regular imports and exports taking place in a routine business.
According to the report, a copy of which is available with WealthPK, a Pakistani company signed two agreements of $6.23 million in trade of potatoes and chickpeas with an Uzbek company.
A memorandum of understanding (MoU) was also signed and a Pakistani company received export orders worth $3 million. The company also got the export orders of 500 tons of kinnows and 1,300 tons of potatoes.
Under another agreement, a Pakistani company got the order of exporting 50 tons of kinnows and mangoes on a trial basis. If the Uzbek importers are satisfied with the product, it would result in more export orders.
Another MoU worth $5 million was signed between two food companies of Pakistan and Uzbekistan. An MoU for trade of fertilizer worth $12 million was also inked. Three MoUs worth $3.5 million were signed for export of syringes and other pharmaceutical products, WealthPK reported.
Two textile companies are finalising export orders worth $7.5 million. In total, 14 MoUs have been signed so far and further process is underway, according to the Ministry of Commerce.
Companies from both sides have signed various agreements and MoUs in rice, fruits and vegetables, logistics, sports goods sectors related to trade, investment and joint ventures.
Agreement between Uzbekistan and Pakistan on Transit Trade (AUPTT) was also signed in July last year, WealthPK reported.
Experts and officials from both sides are negotiating to operationalise the agreement. The agreement will give direct access to Pakistani trucks to Central Asian Republics.
According to the report, Uzbekistan is one of the important prospective export destinations for Pakistan. Uzbekistan has the potential to be a regional hub for expansion of Pakistan’s exports in different sectors to capture the market of Eastern Europe through Russia.
In terms of bilateral trade, Uzbekistan previously was a lower priority for Pakistan due to connectivity and logistic issues and the volume of bilateral trade was only $ 8.9 million in 2016-17.
However, it is emerging as a good market for some of the export sectors as rice, pharmaceuticals, vegetables and fruits, and confectionary products. -INP
