Arsalan Ali

The export of different goods from Pakistan to Tajikistan and Uzbekistan was recorded at $0.435 million and $14.297 million, respectively, in the first two months of the current fiscal, WealthPK reports.

However, Pakistan can further increase the trade with these two Central Asian countries by removing non-tariff barriers. By exploring the full potential of trade with Tajikistan and Uzbekistan, Pakistan can strengthen its economy.

Suleman Akram, a research associate at the Trade Development Authority of Pakistan, told WealthPK that Pakistan’s trade with Tajikistan and Uzbekistan was far below its true potential. He added that more trade agreements by Pakistan with those countries would open up new markets for its exports.

“Pakistan has an estimated export potential of $85 million with Tajikistan and $373 million with Uzbekistan,” he said.

According to data released by the State Bank of Pakistan, the trade with Tajikistan and Uzbekistan in the year 2022 was $3.313 million and $52.438 million, respectively.

Suleman Akram said that Pakistan could maximise its trade with Central Asian countries by strengthening ties with Tajikistan and Uzbekistan. He said that Pakistani exporters faced various problems in the trade with Central Asian countries including currency exchange, banking concerns, language barriers and documentation issues. He added that the security situation in Afghanistan was also hampering the trade with Central Asian countries.

He said that Pakistan exported bananas, milled rice and lead acid accumulators worth less than $1 million to those countries despite an export potential of more than $10 million.

Suleman Akram said that Pakistani fruits and vegetables are in high demand in Uzbekistan. He added that Pakistan could supply fruits and vegetables to Uzbekistan at competitive prices.

He said that Pakistan should negotiate concessions with Uzbekistan to reduce its import bill and get high-quality cotton yarn at a reasonable price. He said that Pakistan could export pharmaceutical products to Tajikistan and Uzbekistan. “Pakistan can export medicines for diabetes, high blood pressure and allergies as well as medicinal herbs, balms and prophylactic drugs worth more than $45 million to Uzbekistan and Tajikistan,” he added.

Suleman Akram said that milled rice is a profitable commodity but Pakistan currently exported less than 2% of its potential of more than $10 million. The export of buttermilk to Tajikistan could also be increased manifold, he added.

He said that the export of services, in particular, has enormous potential in both Uzbekistan and Tajikistan. Uzbekistan has a $3.5 billion market and Tajikistan has a $0.5 billion market.

“In addition to assisting exporters with documentation and expediting bureaucratic processes, a single window operation should be started in Pakistan to resolve currency exchange and transaction issues to increase export to Central Asian countries. The establishment of banking channels under the supervision of the State Bank of Pakistan is also necessary,” said Suleman Akram.

He said that Pakistani exporters should take part in marketing activities, especially exhibitions, in Tajikistan and Uzbekistan to promote their products.

He told WealthPK that loans, subsidies and tax exemptions could help exporters, particularly small and medium-sized enterprises, find new markets for Pakistani products and earn foreign exchange for the country.

Credit : Independent News Pakistan-WealthPk