Uzbekistan offers tax incentives

Envoy eyes $2b trade; LCCI, Karakalpakstan region ink business cooperation MoU

LAHORE:

Pakistan and Uzbekistan have become strategic partners, with their relations growing stronger through mutual trust, shared values and the vision of the leadership of both countries, remarked Farkhod Ermanov, Chairman of the Council of Ministers of the Republic of Karakalpakstan.

He said Karakalpakstan offers vast investment opportunities in natural resources, energy, industry, agriculture and transit, while investors were being provided tax incentives, affordable energy and world-class infrastructure.

Speaking at a meeting at the Lahore Chamber of Commerce and Industry (LCCI), where he led a high-level delegation from Uzbekistan, Ermanov said Karakalpakstan had exceptional potential in mining, construction materials, chemicals, hydrocarbons, renewable energy, especially wind power, and logistics.

He invited Pakistani investors to explore the opportunities, saying the region offers attractive incentives and a business-friendly environment. He also appreciated Pakistan's diplomatic efforts for regional peace, noting that lasting peace would create new opportunities for trade, investment and regional prosperity.

On the occasion, the Lahore Chamber of Commerce and the Ministry of Investment, Industry and Trade of the Republic of Karakalpakstan signed a Memorandum of Understanding (MoU) to promote trade, investment, exchange of commercial information and business cooperation. In his remarks, Uzbekistan Ambassador to Pakistan Alisher Tukhtaev said the Lahore Chamber had been playing an important role in promoting trade relations between the two countries. He mentioned that Pakistan and Uzbekistan share centuries-old historical and cultural ties and removing the existing trade barriers would significantly increase economic cooperation.

The envoy added that six direct flights had been launched between Pakistan and Uzbekistan over the past 18 months while Uzbekistan's economy was growing at an annual rate of 7-8% and attracted $43.5 billion in foreign direct investment last year. He stressed that both countries were committed to increasing bilateral trade to $2 billion within the next five years. Already, 30 MoUs have been signed during the recent visit of Uzbekistan president to Pakistan, which reflects the shared commitment.

Earlier, while welcoming the delegation, LCCI President Faheemur Rehman Saigol said Pakistan and Uzbekistan had immense potential for trade, investment and industrial cooperation. He gave assurances that the Lahore Chamber would continue to play its role in strengthening business-to-business relations between the two countries.Saigol cited that though Pakistan and Uzbekistan enjoy historical, cultural and brotherly ties, the current volume of bilateral trade remains far below the true potential. Trade between the two countries reached around $143 million during financial year 2024-25, including Pakistan's exports valuing at $64 million and imports worth $79 million. "There is a significant room to increase these figures," he said. The Uzbek delegation that visited the LCCI represented sectors such as agriculture, food processing, flour milling, textiles, pharmaceuticals, livestock, oil and gas, and herbal products.

Saigol emphasised that Pakistan also had strong expertise in those sectors and urged private sectors of both countries to explore joint ventures, investment and business-to-business partnerships. He assured the delegation that the LCCI would extend full support to Uzbek investors and businesses for deepening economic cooperation.

The meeting was attended by LCCI Senior Vice President Tanveer Ahmad Sheikh, Vice President Khurram Lodhi, former LCCI president Mian Anjum Nisar, Deputy Chairman of the Council of Ministers of Karakalpakstan Jollibekov Vladimir Bakhtiyarovich, Honorary Consul of Uzbekistan Najeeb Mushtaq Vohra, Punjab Board of Investment and Trade CEO Tauseef Dilahad Khatana, executive committee members and a large number of business leaders.