By Hamid Mahmood ISLAMABAD, Feb. 17 (INP-WealthPK): China’s Belt and Road Initiative (BRI) aims to transform Asian connectivity through large infrastructure and energy projects. The China-Pakistan Economic Corridor (CPEC) is the BRI's fastest-moving project, expanding regional connectivity throughout South and Central Asia while also increasing the importance of Pakistan in the region. Afghanistan may be able to join the BRI with the support of the CPEC expansion. Pakistan may be able to access Central Asian energy markets through Afghanistan. In particular, Pakistan may benefit from Afghanistan as a trade and energy resource route to Europe via Central Asia. CPEC promotes regional connectivity by involving many countries in development initiatives that have the potential to benefit all parties. The landlocked Central Asian Republics (CARs) and Afghanistan can now imagine gaining access to the Indian Ocean and South Asia via the connectivity modalities made possible by this flagship BRI initiative, enhancing bilateral and multilateral economic relations through increased trade opportunities. Central Asia, in general, and Uzbekistan in particular, stand at a critical juncture between prehistoric and contemporary civilisations, each with its own grandeur and splendour of history, legacy and customs. Pakistan and Uzbekistan have had diplomatic relations for more than 25 years, and they also have strong historical ties. Because of their religious and cultural affinities and similar principles, these ties have become stronger throughout time, and both countries have tried to strengthen their international and regional collaboration. Both countries are located in a region of great geostrategic importance. During an official visit to Uzbekistan in July this year, Prime Minister Imran Khan stated that Pakistan intends to improve its connectivity with Uzbekistan through rail, road and aviation trade as well as bilateral domains, which would open up new paths of prosperity in the region. Since 1991, Pakistan and Uzbekistan have signed more than 56 bilateral agreements and memorandums of understanding (MoUs). Commerce, healthcare, agriculture, education, military, research, technology, tourism, banking, telecommunications, and transit are all covered by these accords. Uzbekistan has proposed a trilateral transit trade deal between Pakistan, Afghanistan, and Uzbekistan to resolve trade issues. Uzbekistan is also considering using Gwadar Port to enhance its global market reach. Pakistan, Uzbekistan and Afghanistan have agreed on a plan to build a 573-kilometer route connecting Mazar-i-Sharif and Peshawar through Kabul. The estimated $5 billion project will link Pakistani seaports to Uzbekistan on the Arabian Gulf and continue Afghanistan's gradual absorption into the Central Asian economic system. Prime Minister Imran Khan and Uzbek President Shavkat Mirziyoye reaffirmed their support for this historic railway project, which would connect Central Asia to the Arabian Sea via Afghanistan and Pakistan's seaports. Trade between Pakistan and Uzbekistan had been erratic. According to WealthPk research, from 2018, trade volume between the countries tremendously increased up to $21.1 million compared with 2017 when it was $6.9 million, almost a 32.7 % increase in a single year. In 2019, trade further enhanced and reached $27.89 million. In October 2021, exports from Pakistan increased up to $36.47 million while imports were recorded at about $30.78 million. In 2021, the trade volume increased by $32.95 million (96.07%) compared with the previous year. The behaviour of trade volume and balance is depicted in the given figure.

Data Courtesy: UN Comtrade Database/WealthPK Research