Uzbekistan Roundup: Trade relations with Pakistan, US sanctions, mining

Trade relations

Pakistan is strengthening trade ties with Uzbekistan as part of its broader investment strategy in Central Asia. Recently, officials from both nations discussed enhancing business opportunities, following a $1 billion trade agreement signed in February 2023. The Pakistani Federal Minister for Commerce, Jam Kamal Khan, praised Uzbekistan's infrastructure, particularly its railway system, and highlighted the potential for collaboration in religious tourism, agriculture, food, and pharmaceuticals. Recent direct flights between the two countries have shown promise, and Khan proposed partnerships with local airlines and plans for a business forum during an upcoming official visit.

US sanctions

The US Department of the Treasury has sanctioned three former officials in Uzbekistan for severe human rights violations, specifically sexual crimes against girls at a state-run orphanage. The sanctions, announced on December 2, include Yulduz Khudaiberganova, the orphanage's former director, and two officials, Aybek Masharipov and Anvar Kuryazov, who are accused of human trafficking and gender-based violence. These individuals were implicated in abusing orphaned girls through coercion and exploitation, with Khudaiberganova forcing minors into sexual acts.

Mining

Uzbekistan has announced plans to enhance its mining and metallurgical industries by 2025, aiming to modernize infrastructure, boost production, and attract foreign investments. Further details on specific initiatives or investments have not been disclosed.

Bilateral trade

Uzbekistan and Russia have set a strategic goal to boost bilateral trade to $30 billion from 2024 to 2030. During a working group meeting, Uzbekistan's Minister of Investments, Industry, and Trade, Laziz Kudratov, discussed measures to enhance cooperation in trade, industry, energy, transportation, and agriculture. The next Intergovernmental Commission session will be held in Moscow later this year. Notably, trade between the two countries has increased by 20%, reaching $9.7 billion in the first ten months of 2023, with 68 new products added to Uzbekistan's exports.

Irrigation projects

Uzbekistan's president has approved major irrigation projects in collaboration with Chinese firms to enhance water supply and support sustainable agriculture in Bukhara, Namangan, Surkhandarya, and Kashkadarya regions. The projects, costing $160 million and $60 million respectively, will be financed through a loan from China's Export-Import Bank. Leading Chinese companies CITIC Construction and China CAMC Engineering will oversee the reconstruction efforts, which are set to begin in 2025. The government has allocated $9.3 million from local budgets as advance payments, with further budget adjustments to follow. These initiatives aim to improve irrigation efficiency and address sustainable water management in Uzbekistan’s agricultural sector.