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Uzbekistan will Trade Through Pakistani Ports

Pakistan and Uzbekistan signed a transit trade deal on July 15, transferring all of Uzbekistan’s trade from Iranian Port Bandar Abbas to Pakistani seaports. Pakistan estimates that the treaty, which will provide all Central Asian nations access to Pakistani seaports, including Gwadar, may generate up to $90 billion in revenue.

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The Agreement between Uzbekistan and Pakistan on Transit Trade (AUPTT) will let Pakistani seaports to reach Uzbekistan and grant Pakistani exporters access to all five Central Asian nations. This would strengthen commercial and regional links, as well as provide opportunities for Pakistan to increase exports to Uzbekistan and tap into the $90 billion Central Asian market.

The Uzbek-Pakistan agreement has been negotiated and finalized, and it covers commerce and transit of commodities by road and rail, as well as customs processes, based largely on the Afghanistan Pakistan Transit Trade Agreement (APTTA), a comprehensive and time-tested agreement with enhanced mechanisms.

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According to a Trade Division official, the APTTA 2010 gave Pakistan access to Central Asian commerce for shipping commodities as far as Afghanistan’s border crossings with Uzbekistan, Tajikistan, and Turkmenistan, but Pakistan had no agreement to transport exports beyond those points.

Uzbekistan was given the use of Pakistani seaports as part of the government’s efforts to transform Pakistan into a trade, transit, and transshipment hub and to boost regional connectivity with Central Asia. This agreement would strengthen the economic and cultural links between the two nations.

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