Arsalan Ali

Pakistan has the potential to increase trade with Uzbekistan and Tajikistan, but there are transit trade concerns with Afghanistan which need to be addressed, trade experts say. Offloading trucks in Jalalabad and Spin Boldak, congestion at Torkham, road conditions in transit countries, language barriers and the implementation of the TIR Convention (The Customs Convention on the International Transport of Goods under Cover of TIR Carnets) are major obstacles to reaching full trade potential with central Asia countries.

Abdul Majeed, Trade and Investment Attaché, Embassy of Pakistan in Tajikistan, told WealthPK that Pakistan’s exports to Tajikistan in 2021 stood at $17.08 million which represents a share of 0.4% of the total imports that Uzbekistan made during that period. Tajikistan's top trading partners include Russia, Kazakhstan, Switzerland, China, Uzbekistan, and Turkey. Abdul Majeed stated that Pakistan has the potential to increase the exports of agriculture products, pharmaceuticals, construction material, housing appliances, and textile products to Tajikistan.

He said exports from Pakistan to Tajikistan include citrus fruits, melons, edible vegetables (potatoes, cucumbers, tomatoes, peppers), pharmaceutical products, other made-up textile items, sets, worn clothing, and worn textile articles, cereals (rice), dairy products, bird eggs, honey, edible products of animal origin, aluminium and articles, plastic and articles, soap, organic surface-active agents, washing preparations, and iron and steel.

In 2021, Uzbekistan imported $23.7 billion worth of goods out of which exports from Pakistan were recorded at $50.72 million. Abdul Majeed said Russia, China, Kazakhstan, South Korea, and Turkey are the major trading partners of Uzbekistan. He added that products that have export potential are agriculture products (meat, rice, sugar), pharmaceutical goods, and leather garments. Abdul Majeed stated that Pakistan exports goods to Tajikistan and Uzbekistan via Afghanistan.

The trade route between Pakistan and Tajikistan includes Peshawar-Torkham-Kabul-Sher Khan Bandar-Dushanbe, and the trade route between Pakistan and Uzbekistan include Peshawar-Torkham-Kabul-Mazar-e-Sharif-Termez-Smarkand-Tashkent. He said there is an alternate route to trade with Uzbekistan and Tajikistan via Iran by sea, but it is very costly and takes more time.

Abdul Majeed mentioned that there is no direct flight between Pakistan, Tajikistan, and Uzbekistan, and added that a private Tajik airline is considering starting a direct flight from Dushanbe to Lahore that would help to increase bilateral trade. The trade attaché emphasised the need for stopping informal trade and resolving issues of transit via Afghanistan which can help Pakistani trucks to access the CARs, uptake of TIR, direct flights, normalisation of all trade routes, and participation in trade fairs, exhibitions, and business delegations.

Abdul Majeed said the Pakistan-Uzbekistan Transit Trade Agreement was signed in July 2021. Under this agreement, Uzbekistan can use Pakistan's ports for the import and export of goods, and Pakistan can use Uzbekistan's territory to send goods to other central Asian countries, particularly those connected to Uzbekistan. This will deepen relations between Pakistan and those countries as well.

He added that a similar agreement is being negotiated with Tajikistan and the vision is to make Pakistan a trade, transit, and trans-shipment hub and enhance regional connectivity with central Asian countries.Dr Syed Kausar Ali Zaidi, Director General, Ministry of Commerce, now trade minister in Afghanistan, told WealthPK that Pakistan has exempted tax on fruits and vegetables of Afghanistan. He said trade barriers that Pakistan’s business community has been facing are hindering the growth of Pakistan’s trade with Afghanistan and central Asian countries.

He said Pakistani trucks pay $250 per truck as transit free, and they are not allowed to move beyond Jalalabad, but in the territory of Pakistan, Afghan trucks have no restrictions, and also Pakistan charges no transit fee to Afghan trucks. “If we do not allow trade on Afghan border then thousands of workers will lose their jobs. The financial loss that the Afghanistan government would have to bear is equal to $5 billion, and Pakistan will have to bear $1.25 billion loss,” he said, adding that trade barriers with Afghanistan must be removed to enhance trade with central Asian countries.

Credit : Independent News Pakistan-WealthPk