Islamabad and Tashkent Intensify Economic Cooperation Talks with Kabul

Special envoys from Pakistan and Uzbekistan held discussions aimed at strengthening economic cooperation with Afghanistan, focusing on expanding trade, economic projects, and regional capacity building. The talks emphasized enhancing collaboration to leverage the economic advantages and facilities of neighboring countries.

Uzbekistan–Afghanistan–Pakistan Railway Project

A key topic was the Uzbekistan–Afghanistan–Pakistan railway project, intended to create an economic corridor linking Central Asia to the Indian Ocean. This project, crucial for Afghanistan’s economic development, has faced delays since 2018. Experts highlight that its implementation could reduce transportation costs by 30-40%, benefiting consumers in Afghanistan, Uzbekistan, and the broader region.

Afghanistan as a Regional Economic Hub

Officials from the Ministry of Economy regard Afghanistan as a vital link connecting Pakistan and Uzbekistan. Expanding economic, trade, and transit cooperation among these countries is expected to strengthen the railway project and promote economic growth in all three nations. Deputy Minister Abdul Latif Nazari stated that Afghanistan serves as a regional hub bridging Uzbekistan and Pakistan, with enhanced cooperation fostering development.

Bilateral and Trilateral Agreements and Initiatives

Recent meetings between Afghan and Uzbek officials have stressed expanding bilateral economic ties, including banking cooperation, customs integration, and easing trade barriers. Both sides are working on technical committees addressing trade, transit, mining, industry, railway infrastructure, and banking.

In November 2023, Afghanistan, Pakistan, and Uzbekistan signed an agreement in Islamabad to boost trilateral trade and transit facilities, aiming to strengthen regional integration through joint investments and reduced transportation costs. A joint technical group was formed to advance trade and transit issues, signaling a significant step toward regional connectivity.

Challenges and Outlook

Despite progress, the railway project and broader economic cooperation face challenges, including political tensions and security concerns. Pakistan has expressed concerns about militant activities in Afghanistan, affecting bilateral relations. However, all parties reaffirm the importance of regional connectivity and economic collaboration for mutual benefit.

In summary, Islamabad and Tashkent are actively engaging with Kabul to enhance economic cooperation, focusing on trade expansion, infrastructure projects like the trilateral railway, and regional integration efforts that promise to boost economic growth across Central and South Asia.