In a rapidly shifting geopolitical landscape, the integration of South and Central Asia through strategic infrastructure and economic cooperation has become increasingly vital.
At the heart of this transformation lies the China-Pakistan Economic Corridor (CPEC) Phase-II, now poised to expand its reach into Afghanistan and Uzbekistan.
This ambitious vision, championed by regional leaders such as Uzbekistan’s President Shavkat Mirziyoyev, reflects a growing consensus on the need for enhanced connectivity, sustainable development and shared prosperity across borders.
Interestingly, the most recently held trilateral dialogue among Pakistan, China and Afghanistan in Beijing has decided to extend CPEC Phase-II up to Kabul, with plans to further connect it with all Central Asian countries in the near future.
This strategic announcement consolidates prospects for enhanced trans-regional connectivity, socio-economic integration, infrastructure development and the creation of an integrated transport system, including cluster, container and TIR frameworks, along with cooperation in food security and energy under CPEC Phase-II.
Moreover, the Uzbekistan Trade Centre in Lahore, established under the direct supervision of the Uzbekistan Chamber of Commerce and Industry, will also play a vital role in strengthening Pakistan-Uzbekistan economic ties by serving as a dedicated hub to facilitate trade, promote investment opportunities and enhance commercial cooperation between the two countries.
Critical analysis of Pak-Uzbek economic and trade relations reveals that the signing of the Joint Declaration on Strategic Partnership in 2021, followed by a series of diplomatic, defence and economic agreements have further geared towards greater strength.
Notably, both countries have intensified trade and investment efforts, exchanging inter-governmental agreements on transit, trade and simplified visa procedures for business and tourism which are now paying their dividends.
Bilateral trade has increased remarkably in recent years, reflecting the strengthening economic ties between the two countries.
Now both states set an ambitious target of reaching US$1 billion in bilateral trade.
This goal was further strengthened during Pakistani Prime Minister Shehbaz Sharif’s official visit to Tashkent at the end of February 2025, where additional measures were introduced to push trade volumes to US$ 2 billion within the next four years.
It is pertinent to mention that bilateral trade increased eleven-fold between 2017 and 2024, rising from US$36.2 million to US$403.9 million, with joint enterprises reaching 130.
Over the same period, Uzbekistan’s exports to Pakistan surged 29.5 times, from US$10.1 million to US$298.9 million, while imports from Pakistan quadrupled, increasing from US$26 million to US$104.9 million.
In 2024 alone, trade turnover grew by 4 percent.
Currently, Pakistan accounts for approximately 0.6 percent of Uzbekistan’s total foreign trade turnover.
Additionally, the early commencement of the Pakistan-Uzbekistan-Afghanistan trilateral rail project would be a value addition in terms of reducing time, energy and funds, further enhancing bilateral trade volumes, investments, joint ventures and cooperation in mutually agreed preferential areas.
The first air cargo route between Urumqi, Xinjiang and Islamabad officially commenced operations on March 4, 2025, enhancing cross-border logistics under the China-Pakistan Economic Corridor (CPEC).
Operating twice weekly with a 26-ton capacity per trip, the route will support e-commerce and high-value goods transportation.
The launch of this cargo route represents a milestone in the development of the CPEC providing renewed impetus for bilateral trade and economic cooperation while bolstering the stability of regional industrial and supply chains.
Xinjiang encourages the development of China-Kyrgyzstan-Uzbekistan multimodal highway-railway transport, explores China-Pakistan multimodal routes and supports constructing the China-Kyrgyzstan-Uzbekistan railway, all of which would enhance CPEC connectivity in Central Asia.
Promoting the Quadrilateral Traffic in Transit Agreement (QTTA) among China, Pakistan, Kyrgyzstan and Kazakhstan would further streamline trade and economic activities with Central Asian countries.
In parallel, governments must prioritize the development of the Alternative Middle Corridor (AMC) to offer a stable, sustainable trade route beyond Afghanistan.
The proposed Gwadar-Kashgar-Khorgos Axis (GKKA) is crucial for advancing trans-regional connectivity, socio-economic integration, trade, investment and energy and food security under CPEC Phase-II.
Meanwhile, H.E.Alisher Tukhtaev, Ambassador of Uzbekistan, continues to highlight his country’s investment potential; combining FDIs with trade and commerce in preferential areas and joint ventures would bring mutual economic benefits for both nations and their private sectors.
The envoy is actively engaging with local investors, businessmen, and firms across sectors such as pharmaceuticals, ceramics, electronics, medical equipment and infrastructure, cement, steel, fertilizer, agriculture, textiles, cotton, horticulture, fashion, sports and surgical instruments, tourism, hospitality, and education.
These efforts should be integrated through coordinated initiatives involving strategists, applied economists, international marketing experts, and socio-economic entrepreneurs to promote Uzbekistan’s true economic potential.
Moreover, the Uzbekistan Honorary Consulate in Lahore is set to play a key role in facilitating local businessmen interested in investing in Tashkent by building coordinated frameworks of cooperation, thus transforming aspirations into tangible outcomes and gradually boosting bilateral business activity.
In summary, Pakistan and Uzbekistan are strategic partners aiming to enhance socio-economic integration, financial cooperation, trans-regional connectivity, and collaboration across diverse sectors such as trade, investment, and joint ventures.
However, logistical bottlenecks and high transportation costs remain key challenges for policymakers and business communities in both countries.
To address this, the formation of a “Joint Transport Company” could be a practical step forward.
Policymakers must also work to resolve issues along crucial trade corridors, including the Tashkent-Termez-Kabul-Peshawar-Karachi axis, the Salang Pass, the Termez-Sheberghan-Kabul route, and the Andijan-Osh-Torugart-Kashgar-Khunjerab-Rawalpindi-Karachi corridor, to further strengthen bilateral trade and investment ties.
The writer recommends expanding cooperation in agriculture, agri-tech, agro-processing, cotton, horticulture, textiles, and leather industries to create value-added production cycles and profitable partnerships.
Leasing Uzbek agricultural land to Pakistani investors for cultivating cotton, cash crops, vegetables, seeds, and saffron, along with joint ventures in dry fruits using supply chains connected to Pakistan’s Northern Areas and Balochistan, could be mutually beneficial.
Further collaboration in metals, mining, and rare earth assets, along with partnerships involving Pakistan’s Frontier Works Organization (FWO), Khyber Pakhtunkhwa’s religious-business community, and Balochistan’s influential stakeholders, can attract greater FDI and joint ventures into Uzbekistan.
Joint production initiatives in lithium batteries, electric vehicles, heavy engineering, the chemical industry, education (through dual-degree programs), tourism (via a joint tour company), military production, healthcare, and financial integration are promising.
A trilateral “Pakistan-Uzbekistan-Kazakhstan Air Cargo Company,” modeled after Kazakhstan’s air-shipping success to India, could significantly enhance regional trade dynamics.
As the 4th Tashkent International Investment Forum approaches, both nations—especially their private sectors—should actively promote a shared digital ecosystem, incorporating trans-regional e-commerce platforms, fintech innovations, and integrated banking services to drive greater connectivity, productivity, and shared prosperity.
