Uzbekistan, Pakistan Move Toward Deeper Strategic Economic Partnership
Uzbekistan and Pakistan are set to advance their strategic partnership as President Shavkat Mirziyoyev prepares for an official visit to Pakistan in February 2026, aimed at expanding political and economic cooperation between the two countries.
The upcoming high-level talks come amid rapidly strengthening bilateral relations and will focus on a major economic objective: boosting mutual trade to $2 billion in the coming years. In the short term, both governments are targeting $1 billion in bilateral trade, acknowledging that current volumes fall short of the countries’ full economic potential.
Trade between Uzbekistan and Pakistan has shown steady growth. By the end of 2024, bilateral trade reached $404 million. This momentum continued through 2025, with trade volumes rising to $434.4 million from January to November — a nearly 17 percent increase year-on-year.
Officials from both sides are now working to restructure economic cooperation beyond traditional commodity exchanges. The focus is shifting toward industrial collaboration, joint high-tech manufacturing projects, and deeper value chain integration.
A key pillar of this effort is the expansion of the Preferential Trade Agreement signed in 2022. Authorities plan to widen the list of goods covered under preferential tariffs from 17 to 100 items, providing stronger incentives for exporters. At the same time, Uzbekistan and Pakistan are introducing digital customs systems, including an Electronic Data Interchange platform to speed up cargo processing and reduce border delays.
Efforts are also underway to remove non-tariff barriers by harmonizing sanitary, phytosanitary, and technical standards, particularly for agricultural and light industrial goods.
To support growing trade volumes, both countries are strengthening financial infrastructure. A branch of the National Bank of Pakistan is expected to open in Uzbekistan in 2026, enabling faster payments and trade financing. Central bank officials have already begun coordinating banking compliance and correspondent account arrangements to streamline cross-border transactions.
Industrial cooperation is gaining momentum, particularly in textiles and pharmaceuticals. Uzbekistan is seeking $2 billion in foreign investment to modernize its textile sector, while Pakistani firms are expanding joint ventures in garment production and global marketing. More than 130 Uzbek-Pakistani joint enterprises are already operating in Uzbekistan.
In pharmaceuticals, Pakistani investors are establishing production facilities in specialized zones such as Tashkent Pharma Park to reduce Uzbekistan’s reliance on imports, which currently approach $3 billion annually.
Agriculture remains another fast-growing area of cooperation. Pakistan has emerged as a major market for Uzbek fruits and vegetables, while trade in processed foods, rice, meat products, and tropical fruits is expanding. The two sides are also developing partnerships in agricultural research, seed production, livestock breeding, and modern farming technologies.
Beyond sectoral cooperation, regional connectivity is becoming central to bilateral strategy. The Trans-Afghan Railway project — now in its feasibility stage — is expected to link Uzbekistan directly to Pakistan’s ports of Karachi and Gwadar. Officials view the corridor as a transformative route that could dramatically cut transport costs and strengthen Central and South Asian trade integration.
Institutional ties are also being deepened through plans to establish a Supreme Council of Strategic Partnership, with its first session expected in 2026. The body will oversee cooperation frameworks and coordinate long-term economic initiatives.
Analysts say the evolving partnership reflects a shift from political engagement toward systemic economic integration, positioning Uzbekistan and Pakistan as emerging regional economic partners supported by infrastructure development, trade reform, and expanding industrial collaboration.
