Pakistan, Uzbekistan sign multiple agreements, establish strategic council to strengthen cooperation

Prime Minister Shehbaz Sharif and Uzbek President Shavkat Mirziyoyev witness the MOUs and Agreements exchange ceremony between Pakistan and Uzbekistan in Tashkent on February 26, 2025. (PMO)
Short Url
Updated 26 February 2025
Follow

Pakistan, Uzbekistan sign multiple agreements, establish strategic council to strengthen cooperation

  • Leaders vow that bilateral trade, which currently exceeds $400 million, would be increased to reach $2 billion
  • Under strategic council, ministries and relevant bodies will report monthly on implementation of projects

ISLAMABAD: Pakistan and Uzbekistan on Wednesday signed a joint declaration to establish a High-Level Strategic Council aimed at strengthening economic, diplomatic and security cooperation, as Prime Minister Shehbaz Sharif met Uzbek President Shavkat Mirziyoyev during a state visit to Tashkent. 
Sharif landed in Tashkent late Tuesday following a visit to Baku, during which multiple agreements were signed to enhance cooperation in trade, energy, tourism and education, among other sectors. 
Pakistan is seeking to leverage its strategic position as a key trade and transit hub to connect the landlocked Central Asian republics to the global market. Since last year, there has been a flurry of high-level visits, investment discussions and other economic engagements between Pakistan and the Central Asian states.
On Wednesday, Sharif arrived at the Congress Center in Tashkent, where he was received by the Uzbek president. The two leaders jointly oversaw the signing of multiple memoranda of understanding (MoUs) covering trade, technology, security, youth affairs and media cooperation.
“This historic visit is an important event that will open a new chapter in the expansion of our strategic partnership,” Mirziyoyev said after the signing of the agreements, vowing to increase bilateral trade, which currently exceeds $400 million, to $2 billion.




A photo of Prime Minister Shehbaz Sharif and Uzbek President Shavkat Mirziyoyev during the Pakistani prime minister's visit to Tashkent on February 26, 2025. (Photo courtesy: PMO)

“We have also decided to establish a High-Level Strategic Council ... Once in two months we will have calls by mobile phones. Once a month, all the ministries and relative bodies will report to us in the online format on the implementations of the instructions and measures.”
He said the council would evaluate challenges to bilateral cooperation and work to address them.
Speaking about the status of economic ties, he said there were at least 130 joint ventures between the two nations while more trade houses had been opened in Karachi and Tashkent. 
An intergovernmental commission was “working effectively” while many political consultations, business events and exhibitions of national products had been successfully organized, and more were in the works. 
“The chairperson of Uzbek central bank will go to Pak and his counterpart will come here. We will resolve any possible challenges,” the Uzbek leader said. 
Mirziyoyev said he had also held detailed discussions with Sharif on regional connectivity with a focus on the trans-Afghan rail service aimed at linking the three countries. 
“We are planning to increase the trade turnover to $2 billion and we will increase the industrial cooperation, develop the transport and logistic connections, we will create favorable conditions and incentives for the entrepreneurs and that was the main topic for our discussions today,” the Uzbek president said. 
“And regarding the pharmaceuticals, textiles, leather industry, agriculture, honorable Prime Minister [Shehbaz Sharif] also made the proposals on the energy, geology, and the mining spheres, to develop those industries and to have regional cooperation and access to third countries.”
While air travel had already been launched between Tashkent and Lahore, the number of flights would be increased and new routes introduced connecting Samarkand and Bukhara to Karachi, Mirziyoyev added. 

 


Speaking at the occasion, Sharif said the two leaders had discussed and decided on “a joint way forward in economic terms.”
“We will explore joint projects such as the Afghan railway connectivity, which will be a game-changer not only for Pakistan and Uzbekistan but for the entire region,” he said, adding that they had also discussed cooperation in mining and minerals, the potential for investment in each other’s economic zones, and the expansion of trade. 
“We will also expand tourism, allowing people from Peshawar, Quetta, Karachi, and Lahore to visit Bukhara and Samarkand, while the people of Uzbekistan will also come to visit the historic sites in Pakistan,” Sharif said.
“I look forward to increasing flight connectivity between Tashkent, Lahore, Karachi, and other cities, to facilitate greater interaction and cooperation between our nations. Through industry, investment, agriculture, trade, and culture, we will strengthen our ties and build on the roots of our shared history.”
Among the MoUs signed was one for cooperation between news agencies, and others on youth affairs, science and visa-free travel.
Sharif and Mirziyoyev are also scheduled to participate in a Pakistan-Uzbekistan Joint Business Forum after their bilateral meeting, while the Pakistani prime minister will visit the Tashkent-based Technopark, where he will tour Uzbekistan’s industrial manufacturing units. 
Uzbekistan is the largest consumer market and the second-biggest economy in Central Asia. It is central to Pakistan’s regional connectivity plans and was the first Central Asian nation with which Pakistani officials signed a bilateral Transit Trade Agreement (UPTTA) and a Preferential Trade Agreement (PTA) covering 17 items.
A landmark moment in the relationship was the signing of the Joint Declaration on the Establishment of a Strategic Partnership during a high-level Pakistani visit to Uzbekistan on July 15-16, 2021. This was followed by President Shavkat Mirziyoyev’s visit to Pakistan on March 3-4, 2022, which resulted in the signing of another Joint Declaration on Further Steps to Enhance the Strategic Partnership and multiple agreements covering trade, investment, and economic cooperation.
In February 2023, Pakistan and Uzbekistan signed a $1 billion trade deal to enhance bilateral commerce, facilitating the exchange of goods and services. 
Last month, Uzbekistan’s Ambassador to Pakistan, Alisher Tukhtaev, announced plans to launch direct flights between Uzbekistan and Pakistan’s southern port city of Karachi. Uzbekistan and Pakistan are also working toward optimizing cargo flows, green corridors at border customs points, and digitalization of customs clearance processes to facilitate smoother trade operations.

 


Pakistan transporters call off five-day strike after successful talks with Punjab government

Updated 5 sec ago
Follow

Pakistan transporters call off five-day strike after successful talks with Punjab government

  • Transporters went on strike against heavy fines, penalties imposed by Punjab over traffic violations
  • Punjab government sets up committee to resolve transporters issues, confirms provincial minister

ISLAMABAD: Pakistani goods transporters called off their five-day-long nationwide strike on Friday after successful talks with the Punjab government, officials and transporters confirmed, as the business community warned of an impending economic crisis if the dispute stayed unresolved. 

Transporters went on a nationwide strike on Dec. 8 against stringent traffic rules and heavy fines imposed by the Punjab government over traffic violations. These penalties were included in the Motor Vehicle Ordinance 2025 last month. 

The ordinance details hefty fines ranging from Rs2000 [$7] to Rs50,000 [$178] and mentions prison sentences going up to six months for various offenses committed by drivers, such as driving on the wrong side of the road or driving in vehicles with tinted windows. 

“Yes, the strike has been called off after our meeting with Senior Minister of Punjab Marriyum Aurangzeb,” Nabeel Tariq, president of the All Pakistan Goods Transport Association (APGTA), told Arab News. 

Tariq said fines ranging from Rs1000 ($3.6) to Rs1500 ($5.4) for traffic violations have been increased to around Rs20,000 ($71.3) as per the new rules. 

He said the APGTA has agreed to accept a 100 percent or even 200 percent hike in fines. However, he said an increase of 2000 percent was not “logical.”

“Our urgent demands have been accepted and a committee has been formed to review the ordinance and come up with recommendations,” Tariq said. 

Speaking to Arab News, Aurangzeb confirmed the strike had been called off after talks with the Punjab government and that a committee has been formed to resolve the transporters’ issues. 

The committee will be headed by Aurangzeb and will include representatives of goods transporters, a statement issued by her office said. 

“The government wants to protect human lives and make things better for all citizens,” the statement said. “We will resolve the issues (with transporters) amicably.” 

‘UNPRECEDENTED CRISIS’

Pakistan’s business and industrial community, meanwhile, warned of an impending crisis if the disputed was not resolved. 

The All Pakistan Textile Mills Association (APTMA) and the Karachi Chamber of Commerce and Industry (KCCI) have both appealed for immediate government intervention.

Imdad Hussain Naqvi, president of the Grand Transport Alliance Pakistan (GTAP), told Arab News that over 400,000 goods carriers had been stranded across Pakistan due to the strike, affecting supplies to millions of consumers.

Earlier, in a letter to Punjab Chief Minister Maryam Nawaz, APTMA Chairman Kamran Arshad said the strike has “critically impacted import and export operations which are backbone of the country’s economy.”

He said hundreds of cargo vehicles remain stranded across Punjab, creating “abnormal delays” in goods movement and triggering heavy demurrage, detention charges, missed vessels and production shutdowns due to the non-availability of raw materials.

Arshad warned the disruption poses “a serious risk of order cancelation of export orders by international buyers, which would have far-reaching consequences for Pakistan’s foreign exchange earnings.”

Meanwhile in Pakistan’s commercial hub Karachi, KCCI President Rehan Hanif issued an even stronger warning, saying the nationwide strike threatens to paralyze Pakistan’s economic lifeline. 

“The complete suspension of cargo movement is pushing Pakistan toward an unprecedented trade and industrial crisis,” Hanif said in a statement. 

He added that import and export consignments are now stranded at the city’s ports, highways and industrial zones.