Director: Center for South Asia & International Studies (CSAIS), Islamabad Regional Expert: Uzbekistan & CIS
The President of Uzbekistan H.E. Shavkat Mirziyoyev’s will be visiting Pakistan on March 3-4 during which he will meet with prime minister of Pakistan and other high officials. It predicts that during the stay of Uzbek president the “Preferential Trade Agreement (PTA)” and “Transit Trade Agreement (TTA)” will be signed which will hopefully, further increase bilateral trade between Uzbekistan and Pakistan. It will a “giant step” for immense economic cooperation between two sides.
Moreover, the signing of the agreements will further “facilitate” bilateral and transit trade between Pakistan and Uzbekistan and enhance the “connectivity” with Afghanistan. According to reliable diplomatic sources a “Business Forum” will also be held between the businessmen and investors of both countries in which agreements of millions of dollars will be signed.
While visiting Pakistan in the last week Deputy Prime Minister, Minister of Investments and Foreign Trade of Uzbekistan Sardor Umurzakov met with Prime Minister Imran Khan and finalizing the details of these PTA & TTA agreements.
Furthermore, signing of PTA & TTA will further increase the exports of textile, food, IT and pharmaceuticals sectors and these preferential sectors can also be exported to other Central Asian states.
Pakistan’s transition from geo-politics to geo-economy and Uzbekistan’s rigorous “commercial diplomacy” has been getting momentum for the last two years. Uzbek president Mirziyoyev has held 10 bilateral meetings with Pakistani political leadership, senior officials of the government and the military establishment. In this context, for the further strengthening of bilateral relations between two brotherly countries, Uzbek president Mirziyoyev has held six bilateral meetings with the Prime Minister of Pakistan Imran Khan which is now paying the valuable dividends.
Critical analysis of bilateral trade patterns upholds that during the past five years, the trade turnover has almost quadrupled, from $36.5 million (2017) to $142.9 million (2021). Interestingly, Pakistan was ranked second among all Muslim countries to visit Uzbekistan as tourists (increased 12 times) during 2019 which consequently brightened scope and bilateral cooperation in tourism and culture sectors.
On the other hand, in the last two years, Pakistani investment and entrepreneurship presence in Uzbekistan has almost doubled from 68 to 109 units, and the Pakistani goods transit via Uzbekistan has been increased five times. Thus bilateral trade between two countries have been “flourishing” and “forwarding looking”. Thus visit of Uzbek President to Pakistan will further enhance inflows of FDIs, joint ventures, and cooperation in the diverse sectors of economy.
Numerous valuable bilateral MOUs and agreements have already been inked and implemented to start the new joint projects in agriculture, crop and animal husbandry, mechanical engineering and construction, pharmaceuticals and chemistry, light industry and other priority areas like directly connecting Central Asia region with South Asian countries. Thus visit of Uzbek President will be further systemized and streamlined mechanism and execution of various new MOUs and agreements.
It seems that joint cooperation in the field of religious tourism and pilgrimage, as well as bilateral program for the development of strategic partnership is at “advanced stage” of execution. In recent years, rapidly changing geopolitical and geostrategic scenarios in the region and beyond have developed better understanding in terms of military and security cooperation between the two countries. Hopefully, the recent visit of Uzbek president will further enhance security cooperation in terms of “joint mechanism” of fight against “terrorism”, “radicalization”, “anti-drugs” and human trafficking between two sides.
Currently, the Republic of Uzbekistan holds “chairmanships” of “SCO” and “Energy Charter Treaty” which would further facilitate mutual cooperation in the field of energy, fertilizer, oil & gas exploration and petrochemical industrial between two countries. In addition to this, Uzbekistan government (2022) says it boasts 1.8 trillion cubic meters of gas and the BP Statistical Review of World Energy it has huge potential of “Shale Gas Reservoirs” in the country which may be exported to Pakistan in the future. It is suggested that policy makers of both countries should “diversify” their energy cooperation by including mutual cooperation in shale gas too.
It is estimated that proposed trans-regional railway project among Pakistan, Uzbekistan and Afghanistan would amazingly accelerate delivery of transport goods from Pakistan to Uzbekistan not within 35 days, but only in 3-5 days. So policy makers of both countries must finalize all pending issues about this mega project of the greater regional connectivity and start its implementation as soon as possible.
According to statistical data based on “cost & benefit analysis” economic theory the implementation of the said rail project would reduce the cost of transportation of a 20-pound container by almost three times. The price of transporting a container from Tashkent to Karachi would cost around $1,400-1,600, while through the route “Tashkent-Bandar Abbas” $ 2,600-$ 3,000. It is almost 1.5-2 times cheaper. Thus dreams of greater regional connectivity, immense socio-economic integration, stimulation of economic & trade activities and FDIs must be finalized and pursued during the current visit of Uzbek president Mirziyoyev to Pakistan.
In the recent past, while addressing the international conference “Central Asia and South Asia: regional interconnectedness: Challenges and opportunities, President of Uzbekistan Mirziyoyev showcased the strategic importance of his “ten initiatives” to achieve greater regional connectivity. I term these ten initiatives as “Ten Commandments” of Modern Economic World.
It was indeed a holistic approach and a strategic road map to accelerate trade and commerce activities, joint ventures, mutual investments, new jobs and eradication of poverty between Central & South Asia Regions.
It was a modern “Transportation Network Modeling and Calibration (TNMC)” to create modern, efficient and safe transport and logistics infrastructure in Central Asia and South Asia. The prime trans-regional rail project vividly reflected Uzbek president strategic vision.
Undoubtedly, it is a “holy book” of socio-economic prosperity, massive industrialization, persuasion of green energies, sincere efforts of de-carbonization, formation of economic and logistic corridors, paradigm shift in trade tariffs, integrative mechanism of preferential and free trade. Thus both sides being gateways of Central & South Asia should jointly pursue these goals.
It has proved “Bible of Commercial Diplomacy (BCD)” which eschews conspiracies, conflicts and contradictions and promotes spirits of cooperation, coordination and collaboration among the main stakeholder in the region. It is the real essence of spirits of cooperation between Central & South Regions.
It has been rated as “Das Kapital” for modern era in which rights of socio-economic prosperity are protected through development policies, programs and projects by friendly and befitting interaction of regulatory bodies and investments are made to bring comforts in the lives of common people.
It has been showcased as new “Magna Carta” for the 21 century in which equity of finances creates equitable business propositions and sustainable partnerships for all the regional countries which should be role model for Central & South Asian Regions.
In this context, digitalized world has termed it an “Aurora Supercomputer” to stimulate digitalization in both the regions to enhance virtual connectivity and provide platform of locomotive of economic cooperation. It has further enhanced scope of digital transformation, techniques of survivals and thrives in an era of mass extinction.
Prominent regional as well as international economists have termed it as a new version of “Neo-Malthusian Theory” which argues that food security and sustainable development are intrinsically linked. It formulates a holistic approach by involving all main regional as well as global stakeholders to devise a joint development research to institutionalize usage and utility of advanced technologies and of course implementation of industrial cooperation.
Activists of green energy have labeled it as “Grand Green Book” of simulation of green development in Central Asia and South Asia which has now instrumental to human survival, productive channels, booming trade and commerce and maintenance of appropriate balance between “Divine and Development”.
Gurus of tourism industry have rated it as a new “Blue Book” of tourism to promote “Sustainable Tourism Supply Chain Management System (STSCMS) between both the regions. It is a journey towards beautification of collective cultures, traditions, brands and products. It is vivid reflection of new adventures, adjoining strategies and holy policies to promote tourism in the new age of “virology” in the age of dawn of science and technology.
Global scientists have labeled it as a new “Quantum Theory” of scientific discipline and development to expand scientific, cultural and humanitarian exchanges. It is also a new “Trust Receipt” of mutual trust, friendship, peace, stability and harmony in the entire region. It is new “Rethinking” of youth, nurturing, education and value of human capital among the regional countries.
To conclude, Uzbekistan President being a true lover and supporter of nature, environment, ecology and biodiversity suggested all possible measures to mitigate devastating effects of climate change which has already produced havocs in terms of water scarcity, air and environment pollution, soil degradation and desertification. Thus policy makers of both sides should chalk out a comprehensive policy during the visit of Uzbek president to Pakistan.
Rapidly changing socio-economic orientations, geopolitical scenarios and last but not geo-political compulsions there is an urgent need to start new strategic partnership between Pakistan and Uzbekistan towards greater economic sustainability, regional connectivity, and security. Thus the visit of President of Uzbekistan H.E. Shavkat Mirziyoyev to Pakistan will be a “game” and “fate” changer for both countries.
It is need of the hour to think beyond cosmetic statements to concentrated efforts, historic splendid past to futuristic outlook and cultural and civilizational affinity to recourse of commercial diplomacy and strategic partnership between two countries which have huge potential for greater regional connectivity.
