Uzbekistan has formally invited Pakistani entrepreneurs to acquire 29 operational textile units producing yarn and fabric, while also proposing the establishment of a dedicated Uzbekistan–Pakistan Textile Industrial Zone in Uzbekistan, backed by tax holidays and investment incentives.
Landmark Offer to Pakistan’s Textile Sector
The proposal was presented by the Agency for the Development of Light Industry of Uzbekistan during a high-level meeting with the Islamabad Chamber of Commerce and Industry (ICCI).
Rukhullo Zikrillaev, Deputy Director of the agency, outlined a highly flexible investment framework for Pakistani buyers, including:
- Five-year installment-based acquisition of textile units
- Low-interest financing and cashback guarantees
- Joint venture opportunities to produce garments for EU and US brands using Uzbek fabrics
- Up to 5% cashback on exports routed through Uzbekistan for Pakistani sourcing companies
Competitive Cost & Market Access Advantages
Uzbekistan positioned itself as a cost-competitive manufacturing hub, highlighting:
- Electricity tariffs are around USD 0.08 per unit
- GSP+ access to the European Union
- Free Trade Agreements with CIS countries, supporting export-led manufacturing
The proposed Textile Industrial Zone aims to combine Uzbek raw material strength with Pakistani garmenting expertise, targeting higher value addition and export growth for both sides.
Pakistani Business Community Response
ICCI President Sardar Tahir Mehmood welcomed the initiative, emphasizing strong bilateral potential in trade, connectivity, energy, and industry. ICCI leadership is committed to circulating the proposal among relevant Pakistani stakeholders to convert the opportunity into concrete investments.
Senior ICCI members and representatives of the Uzbekistan Trade Center and CIS Trade Center also termed the incentives strategically attractive, particularly for Pakistan’s export-oriented textile manufacturers facing rising regional competition.
Strategic takeaway:
If executed, the proposal could mark a structural deepening of Pakistan–Uzbekistan textile integration, offering Pakistani firms a low-cost, preferential-access manufacturing base while enabling Uzbekistan to move further up the global apparel value chain.
