ISLAMABAD — Uzbekistan has announced a 10-year tax exemption for Pakistani traders, a move aimed at boosting bilateral trade and attracting investment between the two countries. The announcement was made by Uzbek President Shavkat Mirziyoyev during the Pakistan–Uzbekistan Business Forum held in Islamabad.

The forum was attended by Prime Minister Shehbaz Sharif, senior officials and business leaders from both sides. The tax incentive is expected to lower entry barriers for Pakistani exporters and investors seeking to operate in Uzbekistan’s market.

Addressing the gathering, Prime Minister Shehbaz Sharif said strengthening economic ties and expanding trade links between Pakistan and Uzbekistan were priorities for both governments. He noted that private-sector agreements worth about $340 million were signed at the forum, while bilateral trade of around $450 million was recorded over the past year.

The prime minister said both countries had agreed to raise bilateral trade volume to $2 billion, pointing to opportunities in science and technology, energy, agriculture, textiles and taxation. He added that Pakistan had stabilized its economy, brought inflation down to single digits, reduced the policy rate and recorded growth in the information technology sector.

Shehbaz Sharif assured Uzbek companies of a safe and attractive investment environment in Pakistan, saying Pakistani textile exporters were interested in setting up production units in Uzbekistan. He added that cooperation would also be expanded in health, transport, tourism and natural resources, while Pakistan would help meet Uzbekistan’s demand for rice and potatoes.

President Mirziyoyev said relations between the two countries had developed into a multi-dimensional partnership and that the implementation of agreements signed at the forum would further strengthen bilateral cooperation.

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He said Uzbekistan would work with Pakistan in surgical instruments, pharmaceuticals and textile manufacturing, and that Pakistani investors would be facilitated under Uzbekistan’s business-friendly policies.

The Uzbek president also highlighted regional trade initiatives involving China, Kyrgyzstan and Uzbekistan, and reaffirmed that Pakistani traders would be eligible for a 10-year tax exemption. He added that cooperation in the health sector would be enhanced and announced that 2026 would be observed as a year of partnership-based cooperation between Pakistan and Uzbekistan.