CPEC to further cement Pak-Uzbek strategic partnership

THE paradigm shift in regional security has supported the concept of shared prosperity and subsequently, widened the scope of greater regional connectivity.

The sudden fall of Kabul has accelerated Chinese involvement in Afghanistan. Consequently, its Foreign Ministry repeatedly showed its keen interest to expand the China-Pakistan Economic Corridor (CPEC) in the Central Asian Region.

In this connection, Pakistan desires to forge closer ties with Uzbekistan and other CARs in areas of trade, investment, energy and people-to-people exchanges in which CPEC will play an important role.

However, the Republic of Uzbekistan has been on the right path to get connected with South Asia and Arabian countries through Pakistan, the gateway and connecting hub of Central and South Asian Regions.

The last two years experienced intensified spells of high official meetings, business consultations, economic cooperation, investment coordination and last but not the least joint ventures collaboration between Pakistan and Uzbekistan which has actually immensely increased bilateral inflows of trade, investment and business activities.

It seems that CPEC has great potential in Central Asia and its synergies with other existing regional connectivity projects, both regions get the chance to cooperate with each other to expand economic relations and to overcome financial and energy deficits in which strategic partnership between Pakistan and Uzbekistan would play very important role in the days to come.

Hopefully, the visit of Uzbek President H.E. Shavkat Mirziyoyev to Pakistan (2-3 March) will create numerous befitting propositions for both the countries and their private sectors to make investment on a reciprocal basis.

In this context, Uzbekistan has welcomed CPEC, aspiring to gain access to the market of South Asia.

Uzbekistan has expressed an interest in utilizing the Gwadar port, which has the appropriate logistical linkages that would grant it access to the sea which is being revitalized under CPEC.

Moreover, Uzbekistan will further benefit from transit and trade routes through Pakistan, gaining access to the Middle Eastern and European markets via Gwadar for export purposes.

In this connection, Pakistan has a comprehensive policy to connect Gwadar to Central Asia through the development of trans-regional infrastructure projects spanning Uzbekistan, Afghanistan, Turkmenistan and Tajikistan.

The proposed Peshawar-Kabul highway will further enhance regional connectivity. It also allows other Central Asian countries in economic activities through the Gwadar seaport.

With the completion of western and eastern alignments of the CPEC all participating states, especially Uzbekistan, will benefit from the enormous economic opportunities offered by CPEC. Thus strategic partnership between Pakistan and Uzbekistan would be a game changer for the region.

It is hoped that CPEC projects may increase people-to-people connectivity in such a way that will boost regional tourism and Uzbekistan as the jewel of Central Asia, which has the biggest tourist attraction may also be benefited.

In this regard, Gilgit-Baltistan development may provide an ideal connecting hub and increase tourism.

In this way, CPEC projects can create interdependence between South and Central Asia, reviving centuries-old cross-cultural relations between Pakistan and Central Asia, especially Uzbekistan.

Uzbekistan has been pursuing holistic policies to enhance its regional connectivity for achieving desired goals of socio-economic prosperity, regional integration, poverty eradication, energy cooperation and last but not the least mass industrialization.

Thus, CPEC and strategic partnership of the two countries may hold the key to success in achieving regional connectivity.

It is worth mentioning that Uzbekistan’s reconnect with South Asia through Pakistan offers the shortest routes. It has various seaports to benefit/connect Uzbekistan not only with South Asia and beyond.

Pak-Uzbek strategic partnership is based on easy and smooth development of Preferential Trade Agreement (PTA) and Transit Trade Agreement (TTA) which will be signed during the visit of the Uzbek President to Pakistan.

It estimates that signing of both agreements will further enhance bilateral trade between both countries.

It is hoped that finalization, operationalization and channelization of PTA & TTA will further increase the exports of textile, food, IT and pharmaceutical sectors of both sides in which respective private sectors have great cushion to operate.

It seems that the strategic partnership of Pakistan and Uzbekistan has geared up real commercial diplomacy.

A series of meaningful meetings (10 bilateral meetings with Pakistani political leadership, senior officials of the government and the military establishment) and six bilateral meetings between the top most state/government leadership has accelerated economic ties and inflows of FDIs.

Even entrepreneurship cooperation is on the increase which has now brightened the scope of mutual cooperation in SMEs, Micro-financing, agro-industry and last but not least textile.

It is encouraging that bilateral trade between two sides is on the increase and the trade turnover has almost quadrupled, from $36.5 million (2017) to $142.9 million (2021) in the last five year. Even Pakistan has been rated as the second best among all Muslim countries to visit Uzbekistan as tourists (increased 12 times) during 2019 which has now widened the scope and bilateral cooperation in tourism and culture sectors.

After formation of Pak-Uzbek strategic partnership various MOUs and agreements have been signed which have started new joint projects in agriculture, crop and animal husbandry, mechanical engineering and construction, pharmaceuticals and chemistry and light industry.

It is hoped that the visit of the Uzbek President will further stimulate economic cooperation between the two sides. Moreover, implementation of proposed trans-regional railway project among Pakistan, Uzbekistan and Afghanistan would amazingly reduce X-factors of time, cost, money, energy and ultimately further increase ratios of profitability.

The delivery of transport goods from Pakistan to Uzbekistan will reach only in 3-5 days instead of 35 days. So, strategic partnership is a blessing which has multiplier effects.

Pakistan’s transition from geopolitics to geo-economy has stimulated its ties with Central Asia through its ‘Vision Central Asia’ policy comprising five key segments i.e.

political, trade and investment, energy and connectivity, security, and defence, and people-to-people exchanges.

To conclude, the fastest moving project of the BRI and CPEC is not only intensifying Pakistan’s importance to Asia but advancing regional connectivity across Central and South Asia.

CPEC provides opportunities for regional connectivity by involving multiple states in developmental projects with the potential to benefit all parties. A Pakistan-Uzbekistan-Afghanistan trans-regional railway project is the prime example of greater regional connectivity.

Uzbekistan and Pakistan have emerged as ideal connecting hubs of greater regional connectivity between Central and South Asia.

From ideal strategic “geographies” to converging “geo-political understanding” and from “genie of geopolitics” to “gamut of geo-economy” both countries are getting momentum to make bridges of mutual trust, cooperation, coordination and connectivity. It is hoped that the visit of President H.E.

Shavkat Mirziyoyev to Pakistan will further accelerate economic ties between the two countries. Uzbekistan has signed bilateral agreements with 54 countries on the avoidance of double taxation. Thus PTA & TTA next stage should be signing of Free Trade Agreement (FTA) between two countries.

It seems that Uzbekistan has the basic foundation necessary to become a regional economic powerhouse with a dynamic, literate, and entrepreneurial population, the largest in Central Asia, relatively good infrastructure; and the largest potential consumer market in the region. It is expected that the visit of the Uzbek President to Pakistan would open a new chapter in economic ties which would further simulate all the associated sub-sectors in the days to come.