Trade with Central Asia shrinks amid rising imports

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ISLAMABAD: Pakistan’s exports to five Central Asian countries (CACs) declined by 31.63pc during the outgoing fiscal year (FY25), despite efforts to expand regional trade and implement transit agreements. At the same time, imports from the region surged more than fourfold, deepening the trade imbalance.

According to data compiled by the State Bank of Pakistan, exports to Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan fell to $197.06 million in FY25 from $288.23m in FY24.

In contrast, imports from these countries jumped by 411pc to $245.09m, compared to just $47.94m in the previous year, with the bulk originating from Tajikistan, Uzbekistan, and Turkmenistan.

Despite multiple high-level visits and the operationalisation of transit trade agreements — particularly with Uzbekistan — trade volumes remain below potential. Uzbekistan has begun utilising its transit agreement with Pakistan, and Tajikistan last year imported three truckloads of potatoes under a similar arrangement.

Exports to five Central Asian states drop 32pc, while imports soar over fourfold

However, these developments have yet to translate into a significant boost in exports.

Country-wise data shows that Kazakhstan remained Pakistan’s top export destination among the CACs, but exports dropped sharply by 47.12pc to $97.96m in FY25, from $185.25m the previous year. Meanwhile, imports from Kazakhstan rose to an all-time high of $129.63m, up from just $0.677m in FY24.

Exports to Uzbekistan declined by 18.17pc to $63.65m from $77.79m a year earlier, while imports surged 177.6pc to $79.23m from $28.54m. Similarly, exports to Kyrgyzstan dropped by 58.26pc to $3.99m in FY25, compared to $9.56m last year, while imports rose modestly to $0.571m from $0.357m.

Pakistan’s exports to Turkmenistan increased by 42.73pc, reaching $1.67m from $1.17m, whereas imports grew by 35.48pc to $16.57m from $12.23m. In contrast to the broader trend, exports to Tajikistan more than doubled, rising by 106pc to $29.79m in FY25, up from $14.46m. However, imports from Tajikistan also jumped by 211pc to $19.09m from $6.13m a year earlier.

Pakistan’s annual trade with the CACs, routed mostly via Afghanistan, ranges between $400m and $500m — a fraction of its overall trade volume. The figures highlight the persistent underperformance of Pakistan’s trade with Central Asia, despite diplomatic and logistical efforts to strengthen economic ties.

Published in Dawn, July 27th, 2025

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