Pakistan, Uzbekistan seal $3.4bn private-sector MoUs, set $2bn trade goal

Pakistan and Uzbekistan on Friday agreed to significantly deepen economic ties as business entities from both sides signed memoranda of understanding worth $3.4 billion, while the two governments set a target of expanding bilateral trade to $2 billion within five years.

The agreements were highlighted at the Pakistan-Uzbekistan Business Forum, addressed by Prime Minister Shehbaz Sharif and visiting Uzbek President Shavkat Mirziyoyev, who is on a two-day state visit to Pakistan.

Speaking at the forum, the prime minister invited Uzbek firms to invest in Pakistan’s textile, pharmaceutical, mining, agriculture and tourism sectors, assuring investors of a supportive policy environment and swift resolution of administrative issues. He said both leaders had agreed that there would be no systemic hurdles, bureaucracy or red tape obstructing business activity.

Shehbaz said a bilateral trade protocol was signed to operationalise the $2 billion target, describing it as ambitious but achievable. He added that a joint working group would be established to prepare a five-year roadmap covering trade expansion, investment portfolios and joint ventures, including cooperation in IT, agriculture and research and development.

Referring to last year’s business forum in Tashkent, the prime minister said bilateral trade had reached $450 million over the past year, well below potential, and expressed confidence that President Mirziyoyev’s visit would help unlock unprecedented levels of economic cooperation.

Highlighting Pakistan’s recent economic indicators, he said inflation had declined from over 30 percent to single digits, the policy rate had fallen from 22.5 percent to 10.5 percent, and IT exports were nearing $3.8 billion.

The prime minister also pointed to sector-specific opportunities, including around 30 idle textile plants in Uzbekistan that could benefit from Pakistani expertise, and said expanded air connectivity, including PIA flights, would strengthen people-to-people and business links.

Addressing the forum, President Mirziyoyev said the business community served as a vital bridge between the two countries and welcomed the private-sector agreements. He said the trade framework committed both sides to zero corruption, smooth facilitation and the removal of bottlenecks.

He said Uzbekistan was keen to tap Pakistan’s pharmaceutical expertise and affordable medicines, offering incentives including 10-year tax exemptions. He also highlighted opportunities in textiles, leather goods, mining and agriculture, including joint ventures, land allocation and cooperation in seed production.

The Uzbek president noted that four weekly flights were already operating between the two countries and said additional routes would further boost commercial and people-to-people ties.

Later, the two leaders witnessed the exchange of documents for the pre-signed MoUs between business entities from Pakistan and Uzbekistan.