Pakistan, Uzbekistan agree to strengthen strategic partnership on 30th anniversary of diplomatic ties

Pakistan's Prime Minister Imran Khan (right) and President of Uzbekistan Shavkat Mirziyoyev sign a joint declaration in Islamabad, Pakistan, on March 3, 2022. (Government of Pakistan/Twitter)
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Updated 03 March 2022
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Pakistan, Uzbekistan agree to strengthen strategic partnership on 30th anniversary of diplomatic ties

  • Uzbek President Shavkat Mirziyoyev is on his first visit to Pakistan since assuming office in 2016
  • Pakistan wants to enhance regional connectivity and tap $90 billion export market in Central Asia

ISLAMABAD: Pakistan on Thursday signed a joint declaration with Uzbekistan to further strengthen and expand the bilateral relations by reaching a treaty on strategic partnership between the two countries.
The document was signed hours after Uzbek President Shavkat Mirziyoyev arrived in Pakistan on a two-day official visit and was received by Prime Minister Imran Khan at the airport.
Last year in July, the Pakistani prime minister visited Tashkent to consolidate his country’s economic ties with Uzbekistan and discuss the possibility of enhancing regional connectivity since his administration hopes to tap the $90 billion export market in Central Asia.
“The Leaders of the two countries held comprehensive consultations and considered all aspects of bilateral relations,” said the joint declaration while adding that they “agreed to further deepen and expand strategic partnership in all areas” and “decided to conclude a treaty on strategic partnership.”

It said the Uzbek president emphasized strengthening economic diplomacy and set tasks to bring existing relations with South Asia, especially Pakistan, to a new level.
The two sides also agreed to institutionalize cooperation in the areas of politics and diplomacy, trade and investment, energy and connectivity, security and defense, and people-to-people contact.
Pakistan and Uzbekistan have already established a joint commission on security which held its first meeting in Islamabad last year in November.
“The Leaders reaffirmed the important role of the Termez-Mazar-e-Sharif-Kabul-Peshawar railway project for the future of the region,” the declaration added. “It was agreed to evolve a joint ‘Road Map’, which includes measures to develop a feasibility study for the project and start construction work on both sides.”
They agreed that the trans-Afghan railway project was the most economical and shortest possible route connecting Central Asia with Pakistan’s ports in Karachi and Gwadar.
The two countries also decided to expand their cultural ties by translating Pakistani television serials in Uzbek language and work on a joint production on the life of Zaheeruddin Babur.
President Mirziyoyev’s Pakistan visit coincides with the 30th anniversary of the diplomatic relations between the two countries.
He is accompanied by a high-level delegation comprising his country’s foreign minister, members of cabinet, senior government officials, businessmen and media persons.
The two sides signed several memoranda of understanding in the areas of sports, tourism and environment.
They also reached an agreement to cooperate in the field of television and radio broadcasting.

This is the Uzbek president’s first visit to Pakistan since assuming office in 2016.
The top leaders of the two countries have met several times in recent months. The Pakistani prime minister visited Uzbekistan in July 2021. Later, he met President Mirziyoyev on the sidelines of the Winter Olympics in Beijing on February 5, 2022.

 

 


IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

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IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

  • Fund backs sale of national airline as key step in divesting loss-making state firms
  • IMF has long urged Islamabad to reduce fiscal burden posed by state-owned entities

KARACHI: The International Monetary Fund (IMF) on Saturday welcomed Pakistan’s privatization efforts, describing the sale of the country’s national airline to a private consortium last month as a milestone that could help advance the divestment of loss-making state-owned enterprises (SOEs).

The comments follow the government’s sale of a 75 percent stake in Pakistan International Airlines (PIA) to a consortium led by the Arif Habib Group for Rs 135 billion ($486 million) after several rounds of bidding in a competitive process, marking Islamabad’s second attempt to privatize the carrier after a failed effort a year earlier.

Between the two privatization attempts, PIA resumed flight operations to several international destinations after aviation authorities in the European Union and Britain lifted restrictions nearly five years after the airline was grounded following a deadly Airbus A320 crash in Karachi in 2020 that killed 97 people.

“We welcome the authorities’ privatization efforts and the completion of the PIA privatization process, which was a commitment under the EFF,” Mahir Binici, the IMF’s resident representative in Pakistan, said in response to an Arab News query, referring to the $7 billion Extended Fund Facility.

“This privatization represents a milestone within the authorities’ reform agenda, aimed at decreasing governmental involvement in commercial sectors and attracting investments to promote economic growth in Pakistan,” he added.

The IMF has long urged Islamabad to reduce the fiscal burden posed by loss-making state firms, which have weighed public finances for years and required repeated government bailouts. Beyond PIA, the government has signaled plans to restructure or sell stakes in additional SOEs as part of broader reforms under the IMF program.

Privatization also remains politically sensitive in Pakistan, with critics warning of job losses and concerns over national assets, while supporters argue private sector management could improve efficiency and service delivery in chronically underperforming entities.

Pakistan’s Cabinet Committee on State-Owned Enterprises said on Friday that SOEs recorded a net loss of Rs 122.9 billion ($442 million) in the 2024–25 fiscal year, compared with a net loss of Rs 30.6 billion ($110 million) in the previous year.