INP-WealthPk

Pakistan, Uzbekistan Agree to Boost Transit Trade

April 06, 2022

By Raza Khan ISLAMABAD, April 06 (INP-WealthPK): Pakistan and Uzbekistan have agreed to facilitate the movement of goods through territories of their respective countries to boost trade and economic development. The two countries have prepared the draft of the Pakistan-Uzbekistan Transit Trade Agreement (AUPTT), under which, Pakistan will provide Uzbekistan access to its ports to facilitate expansion of its international trade and economic development. Likewise, Uzbekistan will be a facilitator for Pakistan for its connectivity with Central Asia, according to WealthPK. According to the AUPTT draft, a copy of which is available with WealthPK, “There shall be freedom of transit through the territory of the states of each contracting party, via the pre-settled routes.” Uzbekistan is a landlocked country and its access to seaports in Pakistan will boost its international trade. Pakistan will also get the access to Central Asian markets. Pakistan and Uzbekistan will ensure the efficient and effective administration of transit goods being carried in all types of transport, the agreement says. Both the countries will avoid unnecessary delays and costs in the movement of goods and commercial vehicles through the territories of their states. The routes used for transit traffic through the territories of both countries include maritime ports in the territory of Pakistan: Karachi Port, Port Qasim and Gwadar Port. Road and rail links between these ports and border crossings with Afghanistan at Torkham, Ghulam Khan and Chaman would also be part of the transit route apart from airports in the territories of the two countries. Other transit rail/road corridors through the territories of both countries and a third country would also be part of the transit trade route. According to the agreement, these corridors may be discontinued or new ones may be added upon mutual written agreement. The routes for international transit through the territory of Uzbekistan include road, railway, seaway and riverway links to/from its land border crossings with Afghanistan, to/from its land border crossings with Turkmenistan, Tajikistan, Kyrgyzstan and Kazakhstan. Transit and other facilities, including warehousing, will be provided by the host concerned at the ports and/or any mutually agreed customs approved areas, the agreement says. Special permits will also be issued to the goods’ carrying vehicles by both countries. A separate permit will be issued for each vehicle, granting the right to carry out one round trip. Permits submitted within the current year shall be valid until January 31 of the next year, as agreed in the transit trade agreement. Both the countries shall recognise national driving licences, vehicle registration documents and vehicle licence plates that are issued by the competent authorities of the other state. An Uzbekistan-Pakistan Transit Trade Coordination Committee shall be established for monitoring, facilitating, and effective implementation of the agreement. The committee shall be co-chaired by the deputy minister of investments and foreign trade, Uzbekistan, and the secretary of commerce, Pakistan. During Uzbek President Shavkat Mirziyoyev’s visit to Pakistan in early March, the two countries signed various agreements and memoranda of understanding, including the bilateral Preferential Trade Agreement (PTA) for increased cooperation in the areas of trade, culture, tourism, connectivity and climate change.