Pakistan’s exports to five Central Asian Republics (CARs) declined by 17% in the first half of FY2024-25, even as imports from the region surged, widening the trade deficit. Despite high-level diplomatic engagements and transit trade agreements, Pakistan’s trade with Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan has not yet reached its full potential.
Between July and December 2024, exports to these countries dropped to $90.84 million, down from $109.47 million in the same period last year. In contrast, imports from Central Asia increased by $8.91 million, reaching $136.64 million, compared to $127.73 million last year. Most of these imports came from Tajikistan, Uzbekistan, and Turkmenistan.
Among individual countries, exports to Uzbekistan fell 19.56% to $28.04 million, while imports from the country saw a significant jump from $4.18 million to $47.99 million.
Kazakhstan remained the top export destination, though shipments dropped 30.32% to $39.43 million, while imports surged to $72.76 million, up from a mere $0.385 million last year.
Trade with Kyrgyzstan also showed a sharp decline, with exports halving to $2.18 million, and imports rising slightly to $0.30 million.
Tajikistan emerged as an exception, with exports rising 60% to $20.24 million, but imports from the country also saw a sharp increase, reaching $10.10 million, up from $1.43 million last year.
Turkmenistan’s exports to Pakistan nearly doubled, hitting $5.49 million, while Pakistan’s exports to the country increased modestly to $0.95 million.
Pakistan’s annual trade with Central Asia remains within the $400–$500 million range, much of it routed through Afghanistan. While Uzbekistan has implemented its transit trade agreement with Pakistan, helping facilitate the movement of goods, broader trade gains remain elusive.
Last year, Tajikistan imported Pakistani potatoes via the transit trade framework, but such transactions have yet to scale up significantly. With the trade deficit growing, experts emphasize the need for more targeted trade facilitation measures to leverage Pakistan’s agreements with the region and enhance exports.
