The trade between Pakistan and Central Asia Republics (CARs) has increased in the first quarter of the current Fiscal Year 2023-24, as compared to last year 2022-23 in the same period, which will further strengthen regional integration.
The trade between regional countries including Kazakhstan, Uzbekistan, Turkmenistan, Tajikistan and Kyrgyzstan with Pakistan has reached an all-time high.
Pakistan and Uzbekistan signed a memorandum of understanding for a Joint Working Group on Trade and Investment in May 2020 to encourage trade between the two countries.
Pakistan and Uzbekistan also signed a Transit Trade Agreement among other agreements to improve transit trade in 2021.
This agreement covers commerce and transit of commodities by road and rail as well as customs processes and will shift Uzbekistan’s entire trade from Iran’s Port Bandar Abbas to Pakistani seaports. It will also connect Pakistan seaports to the CARs.
A Preferential Trade Agreement (PTA) was signed in March 2022 between Pakistan and Uzbekistan covering a total of thirty-four goods and the PTA aims to lower duties on these products which currently range from 20 percent to 100 percent.
Non-tariff barriers are to be minimized by mutual recognition of standards and easing procedural requirements for goods covered under the PTA.
President Federal Pakistan Chamber of Commerce and Industry, Irfan Iqbal Sheikh told APP that there is huge potential for Pakistan to increase its exports to the Central Asia region.
He said that trade activities in the past are observed to have improved significantly given the signing of the Preferential Trade Agreement and Transit Trade Agreement with Uzbekistan.—APP
