Business

Pakistan, Uzbekistan Agree to Use China Corridor for Transit Trade

Pakistan and Uzbekistan have agreed in principle to use the China corridor for bilateral transit trade, providing an alternative route after the closure of the traditional Afghan corridor and disruptions along the Iranian route.

The understanding was reached during recent discussions between the two countries, with officials saying the revised transit framework is intended to ensure the uninterrupted movement of goods despite evolving regional security challenges.

The two sides are expected to sign the Protocol for Incorporation of Additions and Amendments into the Pakistan-Uzbekistan Transit Trade Agreement during the visit of Uzbekistan’s Deputy Prime Minister to Pakistan on July 20-21, 2026.

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Under the revised agreement, Pakistan will use the China corridor as an additional transit route for trade with Uzbekistan and other Central Asian republics, while Uzbekistan will continue to access Pakistani seaports.

Officials said the amendments are aimed at diversifying transit routes and reducing dependence on the Afghan and Iranian corridors, which have faced disruptions due to regional instability.

Uzbekistan is Pakistan’s second largest trading partner in Central Asia. Bilateral trade reached $445.9 million in 2025, with Pakistan exporting $120.9 million worth of goods and importing $325 million from Uzbekistan.

The Pakistan-Uzbekistan Transit Trade Agreement has been in force since March 2022, allowing the movement of goods through designated routes, ports and border crossings agreed upon by both countries.

The agreement also covers customs infrastructure, transport permits, warehousing facilities, multiple entry visas for truck drivers and dispute resolution mechanisms.

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Published by
Muhammad Bilal