By: Khurshid Rakhmanov
Uzbekistan and Pakistan are steadily developing a strategic partnership centered on trade, investment, and industrial cooperation. In recent years, bilateral engagement has acquired a systemic and sustainable character, while the achieved indicators demonstrate substantial untapped potential.
The established institutional framework and the intensification of joint projects create all necessary conditions for further dynamic growth in mutual trade and investment.
Trade: Approaching the Half-Billion Mark
By the end of 2025, bilateral trade turnover reached USD 446 million, reflecting a 9.4 percent increase. Uzbekistan’s exports amounted to USD 325 million, with a positive trade balance exceeding USD 200 million.
The structure of trade reflects the agro-industrial complementarity of the two economies. Uzbekistan’s exports to Pakistan consist primarily of legumes, which account for around 70 percent of supplies, as well as grain products, cotton yarn, transport services, and selected agricultural raw materials and chemical products. In turn, imports from Pakistan are mainly concentrated in pharmaceuticals and food products, including potatoes and meat, as well as metallurgical goods, textile products, light industry items, and medical equipment.
The preferential trade regime is also expanding. The list of tariff lines has been increased to 92 items. Quarantine permits have been obtained for the export of four additional types of agricultural products, bringing the total to 29, with six more permits planned for the current year. This creates a foundation for broadening the product range and reducing trade barriers.
Investment: Scaling Up Industrial Cooperation
Investment cooperation has entered a new level of systemic development. As of January 1, 2026, 230 enterprises with Pakistani capital were operating in Uzbekistan, including 80 newly established companies during the past year alone.
Among the largest projects are a USD 72 million textile cluster in Namangan region with the participation of Diamond Group and a USD 25 million pharmaceutical plant in Syrdarya region implemented by Getz Pharma.
Additional momentum was provided by the 10th session of the Intergovernmental Commission held on February 2, 2026, in Islamabad.
The Pakistani side officially stated that it considers Uzbekistan a key and priority partner in Central Asia and established a dedicated internal committee to ensure systematic cooperation across all areas.
In the textile sector, a project portfolio totaling USD 211.5 million has been formed with the participation of Diamond Group of Industries, Siddiqsons Group, Diners, and other partners. In pharmaceuticals, agreements have been prepared with ten companies amounting to USD 125 million for the production of socially significant medicines. In the leather industry, documents are planned to be signed with twelve companies worth USD 88 million within the framework of a business forum. In food security, a USD 35 million project portfolio has been developed with the participation of Engro Corporation, Fauji Group, and National Fruit Company.
Geological cooperation is also advancing in the field of critical minerals, including antimony, copper, and gold. An agreement has been signed between Habib Rafiq Pvt. Ltd. and Uzbek Geology Overseas for geological exploration activities.
Transport Framework: Sea Access and Transit Integration
A key element of the long-term strategy remains the development of the Trans-Afghan railway. Agreements have been reached to commence fieldwork in March, complete the feasibility study by July, and conduct joint roadshows in the Middle East to mobilize financing.
Pakistan has proposed that Uzbekistan join the transit agreement along the Pakistan–China–Kyrgyzstan–Kazakhstan route, introducing a through-container transport mechanism from Karachi without reopening containers in transit countries. This significantly enhances the predictability and competitiveness of logistics.
In 2025, total cargo transportation volume reached 557.5 thousand tons, including 144.5 thousand tons by rail and 412.8 thousand tons by road. The number of flights has been increased to four per week on the Lahore and Islamabad routes.
Financial Infrastructure
Correspondent relations have been established between the National Bank of Uzbekistan and Meezan Bank, and the opening of a subsidiary of the National Bank of Pakistan in Uzbekistan is under consideration. This creates a foundation for simplifying settlements, facilitating project financing, and expanding trade operations.
Prospective Areas of Cooperation
Taking into account ongoing projects and announced initiatives, further development of Uzbek-Pakistani partnership may focus on forming a full-fledged industrial corridor oriented toward third-country markets. This implies integrating production chains, logistics infrastructure, and financial mechanisms of both countries into a unified export-oriented model.
Significant potential lies in deepening textile cooperation with the participation of international brands, expanding contract manufacturing, and jointly entering European, Middle Eastern, and Asian markets. At the same time, the localization of pharmaceutical production, including socially significant medicines and the development of joint R&D platforms, remains promising.
Another priority area is the development of leather industrial zones with the involvement of international operators, as well as the establishment of agro-industrial clusters with deep processing of rice, meat, potatoes, and legumes. This format will increase value added and diversify exports.
Additional opportunities arise in geological exploration of critical minerals, implementation of metallurgical projects, and integration of energy initiatives. Parallel priorities include the digitalization of customs procedures, introduction of electronic trading platforms, and development of joint logistics hubs with access to the ports of Karachi and Gwadar. Strengthening banking and insurance support for cross-border projects will also play a significant role.
Prospects are expanding at the regional level as well. The creation of a Regional Forum, with its first meeting to be held in Khiva, will involve eight provinces of Pakistan and regions of Uzbekistan, giving cooperation a practical interregional dimension.
The new working format of the Intergovernmental Commission, with monthly working group meetings and quarterly interim sessions of co-chairs, ensures effective governance of processes and sustained implementation momentum.
Thus, Uzbek-Pakistani relations are transitioning from a predominantly trade-based model to the formation of a comprehensive investment and industrial architecture. If the current dynamics are maintained, reaching the USD 2 billion trade turnover milestone becomes a strategically grounded and fully achievable objective.
Khurshid Rakhmanov, Head of Department, Ministry of Investment, Industry and Trade of the Republic of Uzbekistan.
