Raza Khan

Pakistan and Uzbekistan have decided to provide tariff concession to each other on 17 items under Uzbekistan-Pakistan Preferential Trade Agreement (PTA), the Ministry of Commerce said. “The concessions of reducing the duties from 20% to 100% on certain items are based on the principle of reciprocity,” the ministry said in its report about the agreement.

Pakistan has negotiated zero duty in Uzbekistan for the export of cement, plastics, tubes and pipe of iron, bottles, flasks, jars, pots, phials of glass and maise starch, the report said. Pakistan has also negotiated concessional duty on export of paint and varnishes, chemicals, mobile phones, confectionary and bakery items, tobacco and cutlery.

On the other hand, Uzbekistan secured concession in duties on beans, apricots, nuts, confectionary, copper, and electronic apparatus, the ministry said in it the report. The agreement of preferential trade between the two countries was signed in March last year and officially came into force in February this year.

The report said that Uzbekistan, with a population of 33 million, is the largest market for Pakistan in Central Asia regarding the number of consumers. “Uzbekistan’s overall imports of $22 billion during last year indicate how big this market is,” the report said.

Uzbekistan also shares borders with all Central Asian countries. Pakistan’s bilateral trade with Uzbekistan was recorded at $91.73 million during the last fiscal year (2021-22). Pakistan’s exports to Uzbekistan were registered at $56.61 million in 2021-22, while imports remained at $35.12 million. Pakistan and Uzbekistan also operationalised the Agreement between Uzbekistan and Pakistan on Transit Trade (AUPTT) last year.

According to the Ministry of Commerce, the purpose of these trade agreements with Uzbekistan is to enhance the volume of bilateral trade up to $1 billion. According to the draft of AUPTT, Pakistan and Uzbekistan agreed to facilitate the movement of goods through territories of their respective states, and to provide transit services and facilities for trade. Under this agreement, Pakistan is providing Uzbekistan access to its ports to facilitate the expansion of its international trade and economic development. Likewise, Uzbekistan is facilitating Pakistan for its connectivity with Central Asia.

According to the agreement, there will be freedom of transit through the territory of the states of each contracting party, via the pre-settled routes most convenient for international transit, for traffic in transit to or from the territory of the state of the vessel. The routes used for transit traffic through the territories of both countries include maritime ports in the territory of Pakistan, Karachi Port, Port Qasim and Gwadar Port. Road and rail links between these ports and border crossings with Afghanistan at Torkham, Ghulam Khan and Chaman would also be part of transit routes apart from airports in the territories of Uzbekistan and Pakistan.

The routes for international transit through the territory of Uzbekistan include road, railway and riverway links to/from its land border crossings with Afghanistan, to/from its land border crossings with Turkmenistan, Tajikistan, Kyrgyz Republic and Kazakhstan. Special permits will also be issued to the goods’ carrying vehicles by both the countries. Separate permit will be issued for each vehicle. Each such permit grants the right to carry out one round trip.

The Uzbekistan-Pakistan Transit Trade Coordination Committee has been established for monitoring, facilitating, and effective implementation of the agreement. The committee is co-chaired by the deputy minister of investments and foreign trade, Uzbekistan and secretary commerce, Pakistan.

Credit: Independent News Pakistan-WealthPk