By Hamid Mahmood ISLAMABAD, March 24 (INP-WealthPK): Uzbekistan has welcomed the China-Pakistan Economic Corridor (CPEC), hoping to gain access to the South Asian market. It has also indicated an interest in using the Gwadar Port, which has the necessary logistical links to provide it access to the sea. The port is being refurbished as part of the CPEC. During Uzbekistan President Shavkat Mirzayev’s recent visit to Islamabad, the two countries signed nine memorandums of understanding (MoUs) and agreements in a variety of domains, including a bilateral Preferential Trade Agreement (PTA) for stronger cooperation in trade, culture, tourism, connectivity, climate change, and security. Uzbekistan would also profit from transit and trade routes through Pakistan, gaining access to Middle Eastern and European markets for export through Gwadar. Trade between Pakistan and Uzbekistan had been erratic and in favour of Pakistan for the last decade. According to WealthPK research, in 2018, trade volume between the two countries tremendously increased to $21.17 million compared with 2017 when it was $6.87 million. In 2019, the trade volume reached $27.89 million. In 2021, exports from Pakistan increased to $48.79 million while imports were recorded at about $37.58 million. The significant trade volume increased in 2021 by $52.07 million and reached $86.37 million (about 151.80%) compared with the previous year. The behaviour of trade volume and trade balance is depicted in the given figure. [caption id="attachment_65473" align="aligncenter" width="696"] Data Courtesy: UN Comtrade Database/WealthPk Research[/caption] Pakistan is aiming to strengthen ties with Uzbekistan and other Central Asian Republics (CARs). The CPEC will play a key role in trade, investment, energy, and P2P connectivity. It will enhance regional connectivity by involving a large number of nations in development projects that will benefit all parties. The landlocked CARs and Afghanistan can now envision access to the Indian Ocean and South Asia, with the potential for active connectivity through this flagship Belt and Road Initiative (BRI), increasing bilateral trade opportunities. Pakistan and Uzbekistan are located in a region of great geostrategic importance. During the official visit to Uzbekistan in July last year, Prime Minister Imran Khan stated that Pakistan intends to improve its connectivity with Uzbekistan through rail, road, and aviation trade as well as bilateral domains, which would open up new paths of prosperity in the region. The CPEC will serve as a channel for landlocked CARs to enhance their business linkages with the rest of the world through Gwadar Port. For all parties concerned, the CPEC would increase regional economic and social integration while also promoting growth. Furthermore, the region is expected to attract FDI and industry as other economic giants regard the region as a lucrative investment opportunity. China and Pakistan, on the other hand, are keen on Central Asian nations due to their abundance of natural resources, particularly massive energy reserves. As a result, it is believed that bilateral and multilateral trade and interdependence will reduce conflict while simultaneously increasing regional connectivity and integration. Between China, Pakistan, and Central Asia, Afghanistan is the shortest and most efficient trade and transit route. Trade between the CARs, Pakistan, and China will be facilitated through Afghanistan, saving not just time but also resources. All concerned states, particularly Uzbekistan, would profit from the immense economic potential afforded by the CPEC. As a result, the strategic cooperation between Pakistan and Uzbekistan might transform the area.