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Pakistan, Uzbekistan to devise joint strategy for completion of UAP rail connectivity project

Pakistan, Uzbekistan to devise joint strategy for completion of UAP rail connectivity project
Pakistan’s Railways Minister Hanif Abbasi meets Uzbek Ambassador to Islamabad Alisher Tukhtaev (left) in Islamabad on June 3, 2025. (PID)
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Updated 03 June 2025

Pakistan, Uzbekistan to devise joint strategy for completion of UAP rail connectivity project

Pakistan, Uzbekistan to devise joint strategy for completion of UAP rail connectivity project
  • The $4.8 billion project aims to enhance regional trade and logistics movement by connecting the three countries
  • It is part of Pakistan’s efforts to position itself as a key transit hub, connecting landlocked Central Asia to the world

ISLAMABAD: Pakistan and Uzbekistan have agreed to formulate a joint strategy for the completion of the Uzbekistan-Afghanistan-Pakistan (UAP) railway project, Pakistani state media reported, amid Islamabad’s efforts to open new regional trade avenues.

The development followed a meeting between Pakistan’s Railways Minister Hanif Abbasi and Uzbek Ambassador to Islamabad, during which the two figures held detailed discussions on the approximately 850-kilometer-long railway connectivity project, which includes a 647-kilometer rail track passing through Afghanistan.

The trilateral initiative was launched in 2021 to enhance regional connectivity by linking Central Asia with Pakistan’s southern ports of Gwadar and Karachi through Afghanistan. The project aims to improve trade access for landlocked countries and strengthen economic integration across the region.

“Upon completion of this project, Pakistan will gain the shortest and most efficient route to Central Asia, which will not only increase trade volumes but also strengthen the region’s economy on a solid footing,” Abbasi was quoted as saying by the APP news agency.

“This railway corridor will significantly reduce transit time and transportation costs, benefiting all stakeholders.”

Pakistan is seeking to leverage its strategic position as a key trade and transit hub to connect Central Asia with global markets and since last year, there has been a flurry of high-level visits, investment discussions and other economic engagements between Islamabad and Central Asian republics.

Abbasi highlighted that the corridor is expected to handle an annual freight capacity of 15 million tons, which could help boost exports and imports across the region, according to the report.

“This project will not only reinforce economic ties but will also play a pivotal role in promoting regional peace and stability,” he said.

On the occasion, Ambassador Tukhtaev acknowledged investment opportunities in Pakistan’s railway sector and emphasized the importance of collaborative efforts to foster economic prosperity and create employment for both peoples, according to the APP report.

Both officials also acknowledged the positive impact of the UAP project in promoting peace and stability in Afghanistan.

Last week, Pakistan’s Deputy Prime Minister Ishaq Dar also held a phone call with his Uzbek counterpart, Saidov Bakhtiyor Odilovich, to discuss steps to advance the UAP railway project, including the framework agreement and its signing mechanism.

Over the years, the project has faced significant challenges, including security concerns in Afghanistan, and the need to reconcile differing railway gauges across the three countries.

“Emphasizing the importance of the Uzbekistan-Afghanistan-Pakistan (UAP) Railway Line Project for regional connectivity, both leaders agreed to work closely for an early finalization of the framework agreement,” the Pakistani foreign office said.


Pakistan expects IMF board approval in early December after staff-level deal

Pakistan expects IMF board approval in early December after staff-level deal
Updated 7 sec ago

Pakistan expects IMF board approval in early December after staff-level deal

Pakistan expects IMF board approval in early December after staff-level deal
  • Government aims to turn support from China, US and Gulf allies into trade, private-sector investment flows
  • Finance chief warns population growth and climate change pose existential threats to Pakistan’s progress

ISLAMABAD: Pakistan expects the International Monetary Fund’s (IMF) Executive Board to approve the country’s next loan tranche in early December after reaching a staff-level agreement in October, Finance Minister Muhammad Aurangzeb said on Wednesday.

Last month, the IMF announced it had reached the agreement with Pakistan for the second review of its 37-month Extended Fund Facility (EFF) and the first review of a 28-month Resilience and Sustainability Facility (RSF), a step that could unlock about $1.2 billion once approved by the Fund’s executive board.

Pakistan secured a $7 billion bailout from the IMF in September 2024 after months of negotiations to stabilize its struggling economy, rebuild reserves and attract foreign investment.

Since then, the IMF has said implementation has remained strong, with fiscal and monetary tightening restoring a measure of stability. The current-account balance recorded a surplus, inflation has eased and external buffers have improved.

“We are under the Fund program, so the second review went well and we had a staff-level agreement announced in Washington, and God willing it goes to the board in early December [for approval],” Aurangzeb said while speaking at The Future Summit in Karachi.

He said Pakistan was witnessing a “confluence of favorable factors,” combining macroeconomic stability with what he called “geopolitical tailwinds” from its traditional partners, including China, the United States and the Gulf Cooperation Council countries, particularly ֱ.

He said the government saw an opportunity to translate this diplomatic and financial support into trade and private-sector-led investment flows, highlighting that sustainable growth must be driven by business and productivity rather than aid.

The minister said corporate profitability had risen by 14 percent during the first nine months of the year, reflecting an underlying strength in Pakistan’s corporate sector.

He also cited a recent Overseas Investors Chamber of Commerce & Industry (OICCI) survey showing that 73 percent of CEOs now view Pakistan as a viable investment destination, up from 61 percent, describing it as a sign of improved investor sentiment.

The minister said Pakistan was now “moving in the right direction” but needed to “stay the course” on structural reforms while recognizing that some areas demanded urgent corrective action.

However, he also mentioned challenges that could jeopardize economic gains.

“These are two areas which I continue to call existential threats for Pakistan: population and climate change,” he said, calling for urgent course correction in both.

Aurangzeb said Pakistan must address rapid population growth and its climate vulnerabilities with the same urgency it has applied to fiscal reforms, noting that “no matter how much we grow, if our population continues to expand at 2.5 percent, we are not going to get where we want to be by 2047.”

He also maintained that technological and digital investments were becoming key drivers of growth and welcomed Google’s decision to open an office in Pakistan and establish the country as a technical and export hub, describing it as “great news.”

“The ball is in our court to provide that ecosystem, to provide that digital infrastructure on the basis of which we can take AI-led growth forward,” he said.