Uzbekistan and Pakistan Aim to Significantly Expand Bilateral Textile Trade

Introduction to Trade Expansion Talks

An Uzbek trade delegation recently concluded productive discussions with the All Pakistan Textile Mills Association (APTMA) in Lahore, Pakistan, on January 23, 2026. The meeting focused on strategies to significantly expand bilateral trade, with a particular emphasis on the textile sector. Both parties expressed a mutual understanding to upsurge the current trade volume, which stands at USD 114 million, to a much higher figure.

Key Participants and Discussion Points

The Uzbek delegation included prominent figures such as Zikrillayev Rukhullo, Deputy Director of the Agency for the Development of Light Industry; Bakhtiyarov Shakhzod, Chief Specialist; Najeeb Mushtaq Vohra, Honorary Consul of Uzbekistan; and Ms. Abdullayeva Dilorom Ubaydullaevna, Representative of CCI Uzbekistan, alongside other notable business leaders. They were received by APTMA Chairman Kamran Arshad, Chairman North Asad Shafi, Treasurer North Mohammad Qasim, and Secretary General Raza Baqir, among other senior executives and leading textile manufacturers. The discussions underscored the commitment of both governments and trade associations to leverage mutual potential and strengths for increased trade.

Investment Opportunities and Incentives

A significant proposal from Uzbekistan involved offering 29 operational textile units, producing yarn and fabric, for sale to Pakistani entrepreneurs. Furthermore, Uzbekistan proposed establishing a dedicated Uzbekistan–Pakistan Textile Industrial Zone within its borders. To attract Pakistani investors, Uzbekistan outlined a package of incentives, including:

• Acquisition of textile units through five-year installment plans
• Low-interest credit facilities
• Cashback guarantees on investments
• Tax holidays within the proposed industrial zone

The Uzbek side also highlighted opportunities for joint ventures, combining Uzbek fabrics with Pakistani manufacturing expertise to produce ready-made garments for European and U.S. brands. Uzbekistan emphasized its competitive electricity tariffs of US 8 cents per unit and favorable market access through GSP Plus status with the European Union and Free Trade Agreements with CIS countries.

Addressing Trade Barriers and Enhancing Connectivity

Both sides discussed measures to ease trade flow and improve connectivity. Uzbekistan informed APTMA about the establishment of Uzbekistan Trade Centers in Karachi and Lahore to assist Pakistani exporters. Progress is also underway to finalize a transit trade agreement between Uzbekistan and Pakistan via Afghanistan. The launch of direct flights between Lahore and Tashkent, with additional routes from Islamabad and Karachi, was noted as a step to enhance travel and business interactions. An agreement between the State Bank of Pakistan and an Uzbek bank is also being pursued to strengthen banking cooperation. APTMA Chairman Kamran Arshad raised concerns regarding logistical hurdles, complications with Letters of Credit, labeling requirements, and land-route security through Afghanistan, which both parties committed to addressing.

Conclusion and Future Outlook

The meeting concluded with a mutual understanding to significantly enhance bilateral trade, particularly in the textile sector. The Uzbek delegation extended an invitation for APTMA members to visit Uzbekistan and participate in upcoming expos and exhibitions, signaling a continued commitment to fostering stronger economic ties. Further visits by Uzbek business delegations are anticipated in the coming months as both nations work towards realizing the full potential of their trade relationship.