Uzbekistan and Pakistan Push for Textile Trade Expansion in Lahore Meeting

Lahore Hosts Key Trade Discussions

A high-level Uzbek trade delegation convened with the All Pakistan Textile Mills Association (APTMA) at APTMA House in Lahore on January 23, 2026, to explore avenues for substantial growth in bilateral trade, with a particular emphasis on the textile industry. The meeting underscored both nations' commitment to strengthening economic ties and leveraging their respective strengths in the global market.

The Uzbek delegation, comprising senior officials and business leaders, was received by APTMA Chairman Kamran Arshad and other prominent textile executives and exporters. This engagement follows previous discussions, including a significant meeting on May 29, 2025, which also focused on boosting textile trade.

Ambitious Trade Targets and Strategic Initiatives

Both sides expressed a mutual desire to expand bilateral trade beyond the current figure of $114 million. The long-term vision includes an ambitious target to increase bilateral trade turnover to $2 billion within the next two years, building on a strategic partnership formalized in 2021. Last year, mutual trade volume reached $400 million, indicating Pakistan's growing importance as a trade partner for Uzbekistan.

Key initiatives and proposals discussed during the talks included:

• The establishment of Uzbekistan Trade Centres in Karachi and Lahore to facilitate Pakistani exporters.
• Progress on a pending agreement between the State Bank of Pakistan and an Uzbek bank to enhance banking cooperation.
• The recent commencement of direct flights between Lahore and Tashkent, with plans for additional routes from Islamabad and Karachi to improve connectivity.
• Efforts to finalize a transit trade agreement between Uzbekistan and Pakistan via Afghanistan, and expediting drivers' visas to ensure smoother movement of goods.
• Uzbekistan's proposal to sell 29 textile units to Pakistani entrepreneurs and establish a dedicated Uzbekistan-Pakistan Textile Industrial Zone in Uzbekistan, offering incentives such as tax holidays.
• An invitation for APTMA members to participate in an upcoming Investment Expo in Uzbekistan.

Addressing Challenges and Future Outlook

While acknowledging the significant potential, APTMA Chairman Kamran Arshad highlighted several challenges impacting bilateral trade. These include logistical hurdles, complications with letters of credit, language barriers in labelling goods, security concerns along the land route through Afghanistan, and delays in finalizing trade agreements and the trans-Afghan railway project. Both delegations affirmed their commitment to addressing these issues to foster a more conducive trade environment.

The Uzbek side emphasized its competitive advantages, such as low electricity tariffs and its GSP Plus status with Europe and Free Trade Agreements (FTA) with CIS countries, positioning Uzbekistan as an attractive destination for export-oriented investments. The ongoing dialogue aims to create a robust framework for sustained economic cooperation and mutual prosperity between Uzbekistan and Pakistan.