Over the past eight years, Uzbekistan and Pakistan have taken several steps to strengthen their bilateral ties, elevating their cooperation into a strategic partnership. A key milestone in this process was the signing of the Joint Declaration on Strategic Partnership in 2021, followed by a series of diplomatic, defense, and economic agreements. Notably, both countries have intensified trade and investment efforts, exchanging intergovernmental agreements on transit, trade, and simplified visa procedures for business and tourism.
Bilateral trade has grown remarkably in recent years, reflecting the strengthening economic ties between the two nations. At the eighth meeting of the Intergovernmental Commission on Trade-Economic and Scientific-Technical Cooperation in February 2023, both nations set an ambitious target of reaching $1 billion in bilateral trade. This goal was further strengthened during Pakistani Prime Minister Shehbaz Sharif’s official visit to Tashkent at the end of February 2025, where additional measures were introduced to push trade volumes to $2 billion within the next four years.
According to data from Uzbekistan’s statistics agency, bilateral trade increased elevenfold between 2017 and 2024, rising from $36.2 million to $403.9 million, with joint enterprises reaching 130. Over the same period, Uzbekistan’s exports to Pakistan surged 29.5 times, from $10.1 million to $298.9 million, while imports from Pakistan quadrupled, increasing from $26 million to $104.9 million. In 2024 alone, trade turnover grew by 4 percent. Currently, Pakistan accounts for approximately 0.6 percent of Uzbekistan’s total foreign trade turnover.
While trade growth has been substantial, the current volumes still fall short of the ambitious targets established by the two governments. Nonetheless, recent discussions in Tashkent renewed optimism, as both nations reaffirmed their commitment to boosting trade. Under an agreed roadmap, Uzbekistan and Pakistan plan to expand the range of goods covered under the Preferential Trade Treaty, simplify customs procedures and phytosanitary procedures, integrate electronic trading platforms, and enhance interbank settlements.
Trade relations are expected to grow across multiple sectors, including pharmaceuticals, agriculture, farming machinery, textiles, leather goods, geology, energy, and mining. Not only do both economies share an interest in exporting processed products to external markets, but both regions are also moving toward economic diversification. These joint efforts are anticipated to strengthen industrial cooperation, improve transparency in logistic connections, and create conducive conditions for business expansion.
Despite strong mutual interest in deepening investment and trade relations, logistical bottlenecks and high transportation costs pose important considerations for respective policymakers and business communities in both countries. Recognizing this, Uzbekistan took a proactive stance by initiating a U.N. special resolution on strengthening interconnectivity between Central and South Asia, which was unanimously adopted by the General Assembly in July 2022. Co-authored by Pakistan and other Central Asian countries, this resolution underscores the significance of transport and transit corridors in enhancing trade efficiency and unlocking regional investment potential.
Currently, two primary land routes connect Uzbekistan and Pakistan. These are the Trans-Afghan Corridor, which runs mainly through Afghanistan, and the Karakoram Highway (also known as the Friendship Highway), which passes through China. Each of these routes presents its own unique opportunities and challenges.
The Trans-Afghan Corridor
The Trans-Afghan Corridor spans 2,800 km along the Tashkent-Termez-Kabul-Peshawar-Karachi axis, providing a connection between Uzbekistan and Pakistan’s key economic hubs, including the Karachi and Gwadar seaports. With an estimated delivery time of 7 to 10 days, this corridor is the most cost-effective and time-efficient route. However, it is fraught with logistical and security challenges.
One major bottleneck is the Salang Pass, the only corridor capable of accommodating heavy-duty trucks (those over 25 tons). The 600-km Termez-Salang-Kabul segment is frequently closed during winter due to severe weather conditions, causing significant trade disruptions. As an alternative, freight has been rerouted via the 850-km Termez-Sheberghan-Kabul route, increasing delivery times and costs. Interviews with truck drivers indicate that transport costs for a 10-wheeled truck from Termez to Kabul amount to $1,150 via the Salang Pass. That rises to $1,450 when traveling via Sheberghan, adding $300 per trip.
Additionally, frequent border closures between Pakistan and Afghanistan due to security incidents further hinder trade. Of the eight official border crossings between the two countries, only three (Torkham, Chaman, and Ghulam Khan) operate 24 hours a day, six days a week, excluding Saturdays, which are reserved for pedestrian movement. Even these crossings are prone to closures, as seen in 2024, when border crossings were shut for a cumulative 67 days, leaving thousands of cargo trucks stranded. For instance, from January 13 to 20, 2024, operations at the Torkham and Kharlachi checkpoints were suspended, leaving more than 2,000 cargo trucks stranded at each location.
The Karakoram Highway
An alternative trade route between Uzbekistan and Pakistan is the Karakoram Highway, which runs through Andijan-Osh-Torugart (on the Kyrgyzstan-China border)-Kashgar-Khunjerab (on the China-Pakistan border)-Rawalpindi-Karachi. This corridor spans a total of 3,855 km, with 2,450 km within Pakistan, 750 km through Kyrgyzstan, and 600 km through China. The estimated delivery time along this route is 10 to 12 days.
Despite its potential, the Karakoram route also faces limitations. The Khunjerab Pass, a crucial segment of this corridor, sits at an elevation of 4,693 meters and remains closed from November to March due to harsh weather conditions, including ice, snowstorms, and landslides. This seasonal closure further complicates the reliability of this route as a year-round trade corridor.
Railway Connectivity
Despite these challenges, the outcome of the recent high-level discussion indicates that both Uzbekistan and Pakistan remain optimistic and committed to deepening trade relations. In the medium to long term, new railway projects such as the Uzbekistan-Afghanistan-Pakistan (UAP) Railway and the China-Kyrgyzstan-Uzbekistan (CKU) Railway promise to enhance regional connectivity and transform trade dynamics between Central and South Asia.
In recent years, Tashkent has actively promoted the 573-km Trans-Afghan railway, which will have a freight capacity of up to 20 million tons per year. This project is not just a regional game-changer but also part of Uzbekistan’s long-term strategy to transform Afghanistan from a security liability into a bridge between Central and South Asia, the Gulf, and beyond.
In 2024, Uzbekistan signed an agreement with Afghanistan and the United Arab Emirates to conduct a feasibility study, with construction set to begin this year. Once completed, this railway will drastically reduce transit costs and time, facilitating seamless trade flows between Uzbekistan and Pakistan.
Another promising development is the CKU Railway, officially launched on December 27, 2024. Once operational, the 523-km railway will link Andijan to Kashgar via Kyrgyzstan’s territory, providing access to the $46 billion China-Pakistan Economic Corridor (CPEC). Given that CPEC is the most developed land corridor under the Belt and Road Initiative, this railway could significantly enhance Uzbekistan’s connectivity to South and West Asian markets and beyond.
Despite short-term logistical challenges, Uzbekistan and Pakistan are on a promising trajectory to achieve their $2 billion trade target, demonstrating a shared commitment to deepening economic ties. The Trans-Afghan Corridor stands as the most direct route, offering vast opportunities for trade expansion, while the Karakoram Highway provides an alternative that, despite seasonal challenges, remains a valuable conduit. In the medium run, the development of railway networks – notably the UAP and CKU Railways – is key to unlocking sustainable trade growth between Central and South Asia. By fostering greater regional cooperation and systematically addressing logistical and financial hurdles, both nations can harness their full economic potential and create a more integrated and resilient trade network.
