ISLAMABAD: The Ministry of Commerce on Monday notified rules of origin for implementation of the Preferential Trade Agreement (PTA) signed with Uzbekistan.

The rules, issued through SRO289, will cover only those products of exports and imports between the two countries identified for concessions under PTA.

Both countries have already identified items for concessions on tariffs and it is estimated that bilateral trade will reach $1 billion. The lists were finalised after consultations with all stakeholders.

According to a Trade Development Authority of Pakistan (TDAP) report, Uzbekistan can be a lucrative potential market for Pakistan to export pharmaceutical, agricultural, and textile products. Uzbekistan has great demand for portland cement, flat rolled iron products and parts of tractors and machinery.

Pakistan can import cotton yarn at cheaper rates from Uzbekistan.

According to the notification, the products will avail concessions only in case produced or manufactured in the territory of the contracting party.

As per the TDAP report, Pakistan has an estimated export potential of $373 million with Uzbekistan.

In December 2022, Pakistan and Uzbekistan signed nine memorandums of understanding (MoUs) to increase cooperation in various fields and prepare an action plan to boost the trade volume to $1bn. The PTA talks were initiated by the PTI government.

The export basket is less diversified as these top products constitute over 80pc of the total exports.

Pakistan mainly imports beans, legumes, zinc, cotton yarn, salt, vegetables, silk and machinery.

Published in Dawn, March 14th, 2023