2017 Republic of Uzbekistan the CENTRAL ASIA COUNTRY SERIES

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2017 Republic of Uzbekistan THE CENTRAL ASIA COUNTRY SERIES

Republic of Uzbekistan

November 2017 ii REPUBLIC OF UZBEKISTAN 2017 For any queries or feedback regarding report, contact this please [email protected] or [email protected] statistics are used correct as of September 1st, 2017,and may subject to be change. The Pakistan Council,Business the or author(s), do not guaranteethedata includedthis in work.data All and World or Bank, CIA. effort made been to cross-checkhas Although every the and authenticityverify thedata, of World Factbook are responsibility the of author(s) the and donotthe necessarily reflect opinionWTO, the UN, of Any conclusions and analysis on data based from ITC, UNComtrade, World Doing Bank, Business and CIA Directors and Members of The Pakistan CouncilBusiness the companiesor they represent. The findings, interpretations and conclusions expressed doBoard viewsnecessarily not the the of of reflect Disclaimer: Mustafa Researcher: Lead Gul Kaliya Team Samir S.Amir Leader: Acknowledgements: More information its on members, PBC, the and its workings, found can be on its website: www.pbc.org.pk • • • • • The major objectivesas statedthe of PBC in its founding documents are: FoundingThe PBC’s Objectives: and reforms. State SECP Bank, and other regulators with objective the to provide assistance policy on initiatives new It on various serves taskforces also and committees of Government the of Pakistan as well of as those the recommendations to government the on legislation and other government affecting policies businesses. impact conduct the of business inand from Pakistan. has Thesubmitted PBC position paperskey and as well as other stakeholders including professional to develop bodies, consensus on major issues which worksThe PBC closelywiththe relevant government departments, ministries, regulators and institutions, on major the issues by faced Pakistan. to facilitate flow the of relevant information all stakeholdersto in order to help create an informed view compete inregional and arenas. global conducts The PBC research and holds conferences seminarsand business sector. Rather, is on its thrust easing key to advocacy barriers allow Pakistani businesses to group. advocacy pan-industry is a The PBC It is body nornot trade a does it advocate for any specific of CorporateCode Governance as applicable to listed companies. Though it is not requiredthelaw under so, to do followsthe PBC greatest the to extentpossible, the is a not-for-profitThe PBC entity, registeredSection 42 Companiesthe of under Ordinance 1984. chief by executiveheaded afull-time officer. businessesPBC cover nearly sectors of all formal the economy. It is aprofessionally-run organization (now 62)of Pakistan’s largest private-sector businesses and conglomerates, including multinationals. The Pakistan platform,is a CouncilBusiness advocacy business (PBC) policy established in2005 by 14 The Pakistan BusinessCouncil: further the economic, social and economic, the humanfurther social resource development of Pakistan. To interact with governments economic inthe development of Pakistan and to facilitate, foster and encourage development inthe and growth of Pakistani multinationals. To promote and facilitate integration the of businesses inPakistan into World the economy and to businesses within and outside Pakistan. information relating to businesses of any kind, nature or description and on opportunities for such To acquire, compile, collect, analyze, publish and provide statistics, data analysis and other affecting businesses in Pakistan. seminars and field works outforcarrying research and raising awareness in regard to matters To conduct, organize, up, set administer and manage campaigns, groups, focus surveys, workshops, business inand from Pakistan. To provide for formation the and exchange of on views any question connected with conduct the of An Overview iii REPUBLIC OF UZBEKISTAN 2017 iv REPUBLIC OF UZBEKISTAN 2017 The PBC’s MemberCompanies The PBC’s The PBC’s MemberCompanies The PBC’s v REPUBLIC OF UZBEKISTAN 2017 vi REPUBLIC OF UZBEKISTAN 2017 Shakhrisyabz and Western the Tien-Shan. sitesThese includethe HistoricCenter of Samarkand,Bukhara, Itchan (Khiva), Kala HistoricCentre of As a major of part ancient the road, silk Uzbekistan is home to five of UNESCO’s World Heritage Sites. of 8%. 2016, Uzbekistan had an inflation rate of 8%, unemployment rate rateof 8.9%,policy and a monetary and exemptions. fiscal Uzbekistan has received investmentsfromSouth China, Korea, and Japan. In were achieved by commercial have which policies included customs high tariffs, closure border,the of and sectors eachcontribute primary 33%and 17%respectively. Favorable foreign direct investment rates transport. Furthermore, 50%of Uzbekistan’s GDP is generated sector, by tertiary the secondary while initiative,(OBOR) envisages which exchange ofand through energy technology an improved system of Moreover, in order to expand trade, Uzbekistan is actively involved in China’s One One Belt Road Russia, Afghanistan, Kyrgyzstan, China, and Turkmenistan. havegas exports facilitated been by Uzbekistan’s network of pipelines that provide to links Kazakhstan, investments and of exports its natural resources; gold, natural gas, cotton and copper. and Oil natural however, over past the 15years growth the rate has averaged 7.16%.Growth by fueled has been Uzbekistan’s economic growth went through a rough patch early in the years after its independence, of Pakistan and Uzbekistan: capita income is much than higher Pakistan’s. Table below provides abrief comparison of economies the Though incomparison to Pakistan, Uzbekistan has a population much smaller and alower GDP, per its first president. In 2016, deathafter the of President Karimov, Shavkat Mirziyoyevbecame the President. of Union, Soviet the Uzbekistan achieved its 1991 with Islam independence inDecember Karimov as its conquests from Alexander Great, the Ghaznavids, Mongols and finally Russians. After the dissolution Theland was occupiedonce by Iranian nomads, and overthe course time of been subject it to has UzbekistanBC). datesBC which richhistory to 1 hasBC (1,000 back to avery first the millennium literacy rate is about 99.6%with Uzbek as dominant the language. and has a population of 31.8 million, 88% of arewhich Muslim, with a growth of annum. 0.93% per The makes it one of only two doubly landlocked countries world. inthe It covers atotal area of 447,400km2 TheRepublic of Central Uzbekistan is a AsianEconomy bordered by five landlocked countries. This is first the publication Series Centraland the features Country of Asian theRepublic of Uzbekistan. – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan are covered being This by PBC. the Argentina, Brazil, Columbia Chile, and Mexico were featured. In ‘5’countries 2017the of Asia Central Mozambique, Nigeria and were South Africa showcased. In 2016, ‘5’ countries from South – America traditional markets to Pakistan’s exporters. In 2015‘6’countries –Angola, from Africa Ethiopia, Ghana, doing Profile since 2015has been Series (PBC) aimed aCountry Council at introducing non- In order to promote Pakistan’s with its trade non-traditional trading Pakistan the partners, Business Summary Official exchangerate(US$,periodaverage) Inflation GDP growth(%) US$) GDP percapita(Current US$billions) GDP (Current Year Population 244.36 1,316 2014 101 7.2 4.7 207,774,520 -(2017)Census Pakistan 271.05 1431 2015 103 2.5 4.7 283.66 1468 2016 105 3.8 5.7 2,050 63.07 2,422 2014 9.1 7.8 31,848,200 -(2016)Estimate Uzbekistan 2,138 2015 2810 66.9 8.5 8 67.22 2,111 2016 3218 7.8 8 where it and ranks 165th respectively. 138th in starting a business25th but back due falls to measures such as trading across borders and paying taxes abusinessrunning for by alocal eachcountry, Uzbekistan world inthe ranks 87th as of 2017.It ranks According to Doing the Business Index, is which measured to determine relative the of ease starting and and Georgia. agreements with have Kyrgyzstan, signed been also Tajikistan, Ukraine, Azerbaijan, Russia, Moldova Economic Cooperation Organization In (ECO). of case WTO, it is only an observer. Bilateral trade Organization of Islamic Cooperation (OIC), Commonwealth of independent states (CIS)and the In order to enhance relations, trade Uzbekistan has become amember of three major alliances: fromgoes Kandahar to Kabul to Mazar-i-Sharif before entering into Uzbekistan at Termez. The routefrom goes Karachi Quettato Chamanto before entering into Afghanistan; in Afghanistan, it andtextile products. agricultural between trade The Uzbekistan and throughPakistan goes Afghanistan. from Pakistan are pharmaceutical products, photography and cinematography equipment, other various to Pakistan include cotton, plastics, salts and stones, earthly and vegetables. Meanwhile, major imports Uzbekistan are $9.14billion potential the while imports from Uzbekistan are $6.98billion. Major exports twothe countries is considering minimal indicative the potential trade. Pakistan’s potential to exports $0.15 million as imports at and stood exports $3.38and $3.22million respectively.between trade The Trade erratic with Pakistan due to very fluctuations has been inexports. trade deficitthe In 2016, was resins and zinc articles,totaling $46.5million in2016. and garments and amounted consisted to $90.8million in2016.Exports of vegetables, gums, fertilizers, of in2015.Imports goods from India mainly comprise of pharmaceutical products, machinery, vehicles Uzbekistan worth $335million to goods Afghanistan exported importing while only $0.3million worth and Tajikistan cannot commented be upon. imports amounted to to$125 million in 2016. Due lack of data, Uzbekistan’s with Turkmenistan trade vehicles, iron, steel, machinery, and fuels. mineral Total to Kyrgyzstan exports were $70million and total and plastics., Uzbekistan supplies nuts plastics, fertilizers, fruits, and to Kyrgyzstan, carpets and receives million, meanwhile, amounted exports to $588million and included vegetables, fruits, fuels mineral Kazakhstan included cereals, iron and steel and products for industries milling and amounted to $922.5 Tajikistan, and Kyrgyzstan, out of Kazakhstan which holds aprominent position. In 2016,Imports from Nearer home, Uzbekistan with other the Asian trades Central Republics, Kazakhstan, Turkmenistan, roughly 16%of Uzbekistan’s GDP. andfruits nuts, knitted or crocheted fabrics and plastics. Moreover, remittances from Russia amount to ironwood, and steel and vegetable oils to Uzbekistan, and imports cotton and clothing accessories, machinery, plastics and iron and steel. Russia, another major trading partner, fuels, mineral exports chemicals. Imports totaled $2billion included which machinery, mechanical appliances, electrical amountedChina to $1.6billion consisted in2016which mainly of fuels, mineral cotton and inorganic Bilateral and China between Uzbekistan trade has increased ten folds over last the 10years. to Exports Kazakhstan. gold and gold plates. Uzbekistan imports most of its products from Russian the China, Federation and andChina Russian the Federation; most of from exports the Uzbekistan to Switzerland comprise of makes up 40%of total Uzbek The exports. major destinations export of areUzbek goods Switzerland, and steel and pharmaceuticals. The most significant commodity exported by Uzbekistan is which gold gas, pure cotton yarn and refinedthe copper topwhile imports are parts, machinery, vehicular iron in anegative balance of trade about $2.1 billion. The major exports of Uzbekistan include gold, natural Uzbekistan $7billion exported worth of and goods imported valued at goods $9.1billion, resulted which Trade plays an important role economy inthe of Uzbekistan contributing about 10%of GDP. the In 2016, vii REPUBLIC OF UZBEKISTAN 2017

List ofContents 4.2. Russia 4.1. China Uzbekistan’s Trade Partners 3.4 Trade Alliances 3.3. Trade Trend: Partners 3.2. Trade Trend: Products 3.1 Trade Overview Trade 29 2.5. OneBeltRoad(OBOR) 2.4. OilandGasPipelines 2.3. Tourism 2.2. SectorsoftheEconomy 2.1. EconomicProfile Economic Profile 1.4. CountryHistory 1.3. PhysicalInfrastructure 1.2. Demographic 1.1 Geography Uzbekistan 01 Geographic andSocialLandscapeof Summary vi MemberCompanies The PBC’s Founding Objectives: The PBC’s The Pakistan BusinessCouncil:AnOverview Disclaimer: ii Acknowledgements: 50 47 45 40 36 32 31 27 24 18 16 11 09 07 06 05 03 Tourism 72 Section Breaks Cover Page Data Sources: 5.3 Sources Pakistani EmbassyinTashkent, Uzbekistan Uzbek EmbassyinIslamabad,Pakistan 5.2. EmbassiesandConsulates 5.1. EaseofDoingBusiness Doing Business 4.9. Tajikistan 4.8. Turkmenistan 4.7. Pakistan 4.6. India 4.5. Kyrgyzstan 4.4. Afghanistan 4.3. Kazakhstan iv iii iii ii 71 71 71 71 70 70 70 69 67 66 65 61 59 56 54 52 ix REPUBLIC OF UZBEKISTAN 2017 x REPUBLIC OF UZBEKISTAN 2017 Table 25:Uzbekistan’sExports to Afghanistan (HS-02)(US$ Millions)(2011-2015) Table 24:Uzbekistan’sExports to Afghanistan (HS-06)(US$ Millions)(2011-2015) Table 23:Uzbekistan’sImportsfrom Afghanistan (HS-02)(US$Millions)(2011-2015) Table 22:Uzbekistan’sImportsfrom Kazakhstan (HS-06)(US$Millions)(2012-2016) Table 21:Uzbekistan’sExportsto Kazakhstan (HS-02)(US$Millions)(2012-2016) Table 20:Uzbekistan’sExportsto Kazakhstan (HS-06)(US$Millions)(2012-2016) Table 19:Uzbekistan’sImportsfrom Kazakhstan (HS-02)(US$Millions)(2012-2016) Table 18:Uzbekistan’sImportsfrom (HS-06) (US$Millions)(2012-2016) Table 17:Uzbekistan’sExportstoRussia (HS-02) (US$Millions)(2012-2016) Table 16:Uzbekistan’sExportstoRussia Russia (HS-06)(US$Millions)(2012-2016) Table 15:Uzbekistan’sImportsfrom Russia (HS-02)(US$Millions)(2012-2016) Table 14:Uzbekistan’sImportsfrom (HS-06) (US$Millions)(2012-2016) Table 13:Uzbekistan’sExportstoChina (HS-02) (US$Millions)(2012-2016) Table 12:Uzbekistan’sExportstoChina (HS-06) (US$Millions)(2012-2016) Table 11:Uzbekistan’sImportsfromChina (HS-02) (US$Millions)(2012-2016) Table 10:Uzbekistan’sImportsfromChina Uzbekistan 44 Table 9:Free Trade AgreementsSignedby Uzbekistan (US$Millions)(2012-2016) Table 8:Top 10ImportPartners of Uzbekistan (US$Millions)(2012-2016) Table 7:Top 10ExportPartners of Wise (HS-06)(2012-2016)(US$Millions) Table 6:Uzbekistan’sExportsProduct Wise (HS-02)(2012-2016)(US$Millions) Table 5:Uzbekistan’sExportsProduct Wise (HS-06)(2012-2016)(US$Millions) Table 4:Uzbekistan’sImportsProduct Wise (HS-02)(2012-2016)(US$Millions) Table 3:Uzbekistan’sImportsProduct Table 2:EconomicIndicatorsofUzbekistan Table 1:RegionsofUzbekistan List ofTables 55 55 55 54 53 53 53 51 51 51 51 49 49 48 48 38 36 35 34 33 32 11 04 Table 40:DoingBusinessinUzbekistan Uzbekistan 64 Table 39:Pakistan’s Potential Exportsto Uzbekistan 63 Table 38:Pakistan’s Potential Importsfrom (HS-06) (US$Millions)(2012-2016) Table 37:Uzbekistan’sExportstoPakistan (HS-02) (US$Millions)(2012-2016) Table 36:Uzbekistan’sExportstoPakistan Pakistan (HS-06)(US$Millions)(2012-2016) Table 35:Uzbekistan’sImportsfrom Pakistan (HS-02)(US$Millions)(2012-2016) Table 34:Uzbekistan’sImportsfrom (HS-06) (US$Millions)(2012-2016) Table 33:Uzbekistan’sExportstoIndia (HS-02) (US$Millions)(2012-2016) Table 32:Uzbekistan’sExportstoIndia (HS-06) (US$Millions)(2012-2016) Table 31:Uzbekistan’sImportsfromIndia (HS-02) (US$Millions)(2012-2016) Table 30:Uzbekistan’sImportsfromIndia Kyrgyzstan (HS-06)(US$Millions)(2012-2016) Table 29:Uzbekistan’sExportsto Kyrgyzstan (HS-02)(US$Millions)(2012-2016) Table 28:Uzbekistan’sExportsto Kyrgyzstan (HS-06)(US$Millions)(2012-2016) Table 27:Uzbekistan’sImportsfrom Kyrgyzstan (HS-02)(US$Millions)(2012-2016) Table 26:Uzbekistan’sImportsfrom Afghanistan (HS-06)(US$Millions)(2011-2015) 69 63 62 62 62 60 60 60 60 58 57 57 57 55 Afghanistan (US$ Millions)(2008-2015) Figure 24:Uzbekistan’sTrade with Kazakhstan (US$Millions) (2007-2016) Figure 23:Uzbekistan’sTrade with (US$ Millions)(2007-2016) Figure 22:Uzbekistan’sTrade with Russia (US$ Millions)(2007-2016) Figure 21:Uzbekistan’sTrade with China (US$ Millions)(2007-2016) Members ofWorld Trade Organization Figure 20:Uzbekistan’sTrade with Organization (US$Millions)(2007-2016) members ofEconomicCooperation Figure 19:Uzbekistan’sTrade with Independent States(US$Millions)(2007-2016) Members ofCommonwealth Figure 18:Uzbekistan’sTrade with Cooperation (US$Millions)(2007-2016) Members ofOrganizationIslamic Figure 17:Uzbekistan’sTrade with Uzbekistan (US$Millions)(2012-2016) Figure 16:Top 10ImportPartners of Uzbekistan (US$Millions)(2012-2016) Figure 15:Top 10ExportPartners of (2001-2016) (US$Millions) Figure 14:Uzbekistan’sTrade overview Figure 13:MapoftheOneRoadBeltProject Figure 12:MapofCentralAsianGasPipelines Figure 11:MapofCentralAsianOilPipelines Economic SectorsforUzbekistan Figure 10:DistributionofGDPby Rate (1996-2016) Figure 9:Uzbekistan’sMonetaryPolicy 2016) (ConsumerPriceIndex) Figure 8:Uzbekistan’sInflationRate(2006- Rate (%oftotallaborforce)(1990-2016) Figure 7:Uzbekistan’sUnemployment Investment, NetInflows(1992-2015) Figure 6:Uzbekistan’sForeign Direct Rate (1990-2016) Figure 5:Uzbekistan’sAnnualGDPGrowth (1990-2016) (US$) Figure 4:Uzbekistan’sGDPperCapita (US$ Billions) Figure 3:Uzbekistan’sGDP(1990-2016) Groups 05 Figure 2:DistributionofPopulation byAge Figure 1:MapofUzbekistan List ofFigures 54 52 50 47 43 42 41 40 39 37 31 27 25 24 16 16 15 14 14 13 12 12 03 Figure 28:Trade RoutetoPakistan Pakistan (US$Millions)(2007-2016) Figure 27:Uzbekistan’sTrade with (US$ Millions)(2007-2016) Figure 26:Uzbekistan’sTrade withIndia Kyrgyzstan (US$Millions)(2007-2016) Figure 25:Uzbekistan’sTrade with 65 61 59 56 xi REPUBLIC OF UZBEKISTAN 2017

The Tomb of the King Timur Barlas, Samarkand, Uzbekistan SECTION 1 Geographic and Social Landscape of Uzbekistan

1.1.2. Area Geographic Coordinates: 41.3775°N,64.58530E doubly landlocked countries world inthe other -the Liechtenstein being Europe. inCentral northeast; Afghanistan to south; the and Turkmenistan to southwest. the This makes it one of twoonly by fivelandlocked countries: Kazakhstan the to north; Tajikistansoutheast; the to the to Kyrgyzstan Uzbekistan, officially Republicthe oflocated Central Uzbekistan, is in Asia. Uzbekistan is bordered 1.1.1 Location 1.1 • • • Geography Water: 22,000km² 425,400km² Land: Total Area: 447,400km²    Other: 29.7%(2011 est.) Other: Forest: 7.7% Agricultural land: 62.6% Figure 1:Map of Uzbekistan 03 REPUBLIC OF UZBEKISTAN 2017 04 REPUBLIC OF UZBEKISTAN 2017 republic within Uzbekistan. addition, capital the city, area and population of Karakalpakstan shown is also is which an autonomous population of each of provinces the along with that of Tashkent is which Capital the of Uzbekistan. In There are 12 provinces in Uzbekistan. The following table shows the capital city, the area the and 1.1.4. RegionsofUzbekistan whereincludes its Sea, Aral shoreline the is 420Km long. Sea with Aral the Since Uzbekistan is doubly landlocked, it has no coastline.southern Theportion of Uzbekistan, however, Border Countries: Total border length: 6,893 km 1.1.3. LandBoundaries Table 1:Regions of Uzbekistan Andijan Region Navoiy Region Namangan Region Xorazm Region Jizzakh Region Fergana Region Bukhara Region Tashkent Karakalpakstan Tashkent Region Region Surxondaryo Region Sirdaryo Samarqand Region Region Qashqadaryo • • • Kyrgyzstan - 1,314 km Kazakhstan - 2,330 km Afghanistan Division - 144 km Capital City Regions ofUzbekistan Regions Samarkand Namangan Tashkent Andijan Urgench Guliston Bukhara Fergana Jizzakh Termez Navoiy Qarshi Nukus — • • Turkmenistan - 1,793 km Tajikistan 110,800 160,000 20,500 39,400 15,300 20,800 16,400 28,400 4,200 7,900 6,300 6,800 5,100 Area 335 - 1,312 km Population 2,857,300 2,554,200 1,250,100 1,785,400 1,715,600 3,444,900 2,352,300 2,758,300 2,358,300 3,514,800 2,958,900 1,763,100 777,100 913,200 1.2.1 Population 1.2. Uzbekistan is aresource rich country, following natural resources are found inUzbekistan: 1.1.5. NaturalResources • • • • • • • • • • Total at for birth life expectancy Uzbeks is 68.45years. (2016) Percentage of Population in Urban areas: 36.4%(2015) Population Growth Rate: 0.93%(2016) Total Population: 31,848,200(31.8million) (2016)(Largest Asia) inCentral Silver Uranium Coal Petroleum Natural gas Gold Demographic o o Female life expectancy atFemale is 71.9years. birth life expectancy atMale is 65.1years. birth life expectancy Figure 2:Distribution of Population by Age Groups • • • • • Molybdenum Tungsten Zinc Lead Copper 05 REPUBLIC OF UZBEKISTAN 2017 06 REPUBLIC OF UZBEKISTAN 2017 • • • • • • • 1.3. Physical distributionThe ethnic of Uzbekistan (1996) is as follows: 1.2.5. EthnicGroups Church Orthodox Eastern accounts for 9%of population. the afurther Islam is by far most the dominant religion inUzbekistan with 88%of population the Muslim. being The 1.2.4. Religion and business use. communication, cities, inthe including especially much day-to-day technical, scientific, governmental and since which 1992 iswritten officially the in Latin alphabet. Russian also an is important language for and Tajik. The language, Uzbek withthe highest number of users theat 74%, is only official state language, There are a number languagesof spoken in theUzbekistan, more important beingones Uzbek, Russian 1.2.3. Language for and males females respectively. youth the Overall literacy rate is 99.95%. adult literacy rate is 99.59%.The youth literacy rates, for fromages 15 to 24 years, are 99.9% and 100% population, aged 15years and above, is 99.72%and 99.47%for and males females respectively. The total rateLiteracy is defined the by ability to read andwrite. The Literacy rate in Uzbekistan the for adult 1.2.2. Education • • • • Internet access (%of population) – 52.4%(2016) Access (%of population) to Electricity – 100%(2014) Ports Waterways –1,100Km (2012) Railway –4,304Km (2016) –53(2013) Airports NetworkRoad –86,496Km (2000) 3% Kazakh Tajik 5% Russian 5.5% Uzbek 80% o o o o o River Port –Termiz (Amu Darya) Without Paved Runways –20 With Paved Runways –33 Unpaved –10,985Km Paved –75,511Km Infrastructure • • • other 2.5% Tatar 1.5% Karakalpak 2.5%

election withelection alandslide. Karimov’s termfrom extended Karimov when 1997to was 2000which further was re-elected inthe toled acouple of violent outbreaks ineastern Uzbekistan. In 1995,areferendum extended President constitution was approved. The main oppositionbanned, was party and suppressionmedia began. This After independence Islam Karimovthebecame president theRepublic of of Uzbekistan and a new laid down foundation the of bilateral relations two the countries. between Karimov President then the of Uzbekistan made first the visit to Pakistan in August visits 1992. These Prime then the Minister of Pakistan, made first the visitofficial toUzbekistan and subsequentlyIslam relations with Pakistan were established inMay of 1992.In June 1992,Mian Mohammad Nawaz Sharif, Pakistan immediately Uzbekistan recognized as an independent state 1991. Diplomatic in December from Union Soviet the in1991. Islam Karimov as Communist the Party Chief. The SupremeSoviet of Uzbekistan approved independence nationalism. of violent 1989aseries During clashes involving Uzbeks ethnic to appointment led the of purge of Uzbek the mid-1980s, began however,in the party last the unlike one this time Uzbek boosted ofpart Russification the of thatUzbekistan beganthe 1930s in andlasted through the 1970s. Another replaced with Russian who accelerated Officials the migration of Russians to Uzbekistan. This was As of part Stalin’s purge of communist 1930s, the the leadership under Khojayev was executed and andSoviets Uzbek in1924,the Republic was formed Socialist Soviet tsarthe in1917and established an autonomous state at Quqon. Uzbekistan was reconquered by the twentieththe century, Jadidist the movement began from present-day Uzbekistan; Jadidists overthrew Uzbekistan grewdue to immigration from Russia, and some industrialization At occurred. of start the and by 1876Russia had incorporated present-day Uzbekistan into its empire. The Russianpopulation of mid-nineteenth the During century, conquest Imperial military Russia of Asia Central began afull-scale Bukhara and irrigation the system along Amu the Darya. fora devastating Asia. Central period The conquestcaused large damage scale to wealthy cities such as At of start the century, thirteenth the Mongols the invaded Asia Central under Khan. Genghis This was TransoxianaQarakhanids ruled for next the two centuries. Asia were as they closely followed by Turkic the Qarakhanids took who Bukhara in999AD. The Turkic Asia, Afghanistan, and Pakistan. rule the Theof Ghaznavid Empire was however shortCentral lived in Ghaznavidthe state of Sultan under rule the Mahmud conquered large areas of Iran, Eastern Central geographers of Muslim the empire were natives of region. this Towards end the of tenth the century, centers of learning, culture, and Muslim inthe art world. Some of greatest the scientists, historians and Tajikistan, southern Kyrgyzstan, and southwest Kazakhstan. Bukhara one became of leading the were golden the age of learning and culture inTransoxiana consists which of modern-day Uzbekistan, was complete by eighth the century AD. According to some historians, eighth the and ninth centuries Afterrise the of Islam in622AD., beganit to spread rapidlythrough Asia. The conquest Central of Asia and brought it under control the of Macedonian the Empire for abrief period. Europe on what known became Alexander Road. as Silk the Great the conquered region the in328BC towns at Samarqand and Bukhara; extremely became which wealthy as transit points and China between withstarted Iranian nomads building irrigation systems along rivers the of Asia. Central They built UzbekistanBC). datesBC which rich history to 1 hasBC (1,000 back to avery It first the millennium 1.4. Country History 07 REPUBLIC OF UZBEKISTAN 2017 08 REPUBLIC OF UZBEKISTAN 2017 President by Shavkat Mirziyoyev. presidential elections. Islam Karimov inSeptember 2016,from died astroke, and was replaced as In 2007Islam December Karimov was re-elected to power followed by wins 2011&2015 inthe plagued by terrorist attacks by extremist groups such as Al-Qaeda. to Kyrgyzstan due toriots inUzbekistan ethnic mid-2000sUzbekistan the 1990s.During inthe was Problems with Kyrgyzstan Uzbekistan grew when demanded extradition of refugees the had who fled Turkmenistan. Adefense treaty Russia between was signed and Uzbekistan during mid-2000s. the Tajikthe border. Tensions rose with other also neighboring countries including Kyrgyzstan and regionalSerious issues developed afterthe elections in2000 as layingUzbekistan started along mines Registan, Samarkand, Uzbekistan SECTION II Economic Profile 10 REPUBLIC OF UZBEKISTAN 2017 associationsfree-trade to ensure increased flow trade of economicand cooperation. Organization of Islamic Cooperation (OIC), Commonwealth of Independent States (CIS)and other in 2016.To avoid any likely economic chaos, Uzbekistan has joined many institutions such as the by 78%in2016,over 2012.The rate growthof economythe of waswith 7.80%, aGDP of $67.22 billion Even though balance of the for trade Uzbekistan negative has been for past the few years it improved shows alist of economic indicators for last the 5years: that Uzbek the economy is endowed with such as gold, natural gas, cotton and copper.table The below Development has Bank credited economic high the growth rates to large the of exports commodities While World the has Bank credited Uzbekistan’s growth high rates of around 8%to investment, Asian the regulations. registration process for businesses, incentives giving tax extra to investors and rationalized customs environmentthe of country, the government the initiatives taking has been have which simplifiedthe foreign exchange, it to led an has also overregulated banking and sector rampant corruption. To improve and import-substituting havewhich policies resulted in restricted access of private businesses sector to regulations. The government hascarried out various state-led interventions based on export-oriented to Uzbekistan’s authoritarian of style governance, economic growth impeded due has to been strict economythe growing has been at about 8%eachyear. However, according to World the owing Bank, According to World the major the Bank, reason for economic growth inUzbekistan investment; has been by its exporting natural resources. cotton and exporter largest 9th the producer of gold. Uzbekistan earns large sums of foreign exchange Uzbek economy is an agriculture-oriented economy with cotton as its main crop. It is fifth largest the ofstyle government by exercising controls strict on prices, production and foreign access. The currency After fromits independenceSoviet the Union,the Uzbek government continuedwith an autocratic 2.1.1. EconomicOverview 2.1. Economic Table 2:Economic Indicators of Uzbekistan Exchange Rate (versusUS$) Inflation (annual%) Human DevelopmentIndex(HDI) Balance ofTrade (US$Billions) Unemployment (%oftotallaborforce) Real GDPgrowth(annual%) US$) GDP percapita(Current US$Billions) GDP (Current Economic Indicators Profile $1,740 11.90 2012 -4.54 1984 0.68 9.13 8.20 $52 $1,908 11.70 2013 -4.39 2202 0.69 9.05 8.00 $58 $2,050 2014 -6.44 2422 9.10 0.70 8.96 7.79 $63 $2,138 2015 -4.09 2810 8.50 0.70 8.92 8.00 $67 $2,111 2016 -2.18 3218 8.00 8.90 7.80 $67 NA 11 REPUBLIC OF UZBEKISTAN 2017 12 REPUBLIC OF UZBEKISTAN 2017 Uzbekistan suffered a capitaslight inGDPper fall from $2,137 in2015 to $2,110in2016. Much like GDP, GDPcapita per an upward seen has also trend after it reached its lowestpoint in2002. 2.1.3. GrossDomesticProductPer Capita Uzbekistan reached its highest recorded GDP in2016at $67billion to rise. and is this expected increasethe and infuel public transport prices by 6-8%;stimulating demand domestic inthe market etc. include upgrading production and encouraging cuts inproduction cost for import substitution; capping Program on aimed policies focused to support real of the sector economy. the Some of measures the Crisis (2008)due to Anti-Crisis the Programme implemented by Islam Karimov. The Anti-Crisis of economic the downturns Asian like Central the Crisis (2007-2008)or World Energy the Financial Uzbekistan arising trend has seen over last the 15years. Uzbekistan’s GDP has not affected been by any $15.0 billion. It reached its lowest point in2002at $9.69billion but rising since. has been The GDP of In 1991, Uzbekistan had aGDP of $13.6 billion; from 1991to GDP 1998, the ranged $13.5 & between 2.1.2. GrossDomesticProduct UZBEKIST OF REPUBLIC Figure UZBEKIST OF REPUBLIC a2002. Uzbekistan suffered slight 2016. capita fallto$2,110in inGDPper from $2,137in2015 Much likecapita GDP, GDP per also has DomesticGross 2.1.3. Per Product (2007 Asian Energy Crisis economiclike the Central the anydownturns of has affected been by not since. The has GDP of Uzbekistan $13.5 &It $15.0billion. reached lowest point its 2002in at$9.69 billion has but been rising GDP ranged between from 1998,the 1991 to $13.6billion; In a 1991,UzbekistanGDP had of Domestic Product Gross 2.1.2. public transport pricesby 6 andcapping fuel increasesubstitution; the in import costfor encouragingproduction cutsin the realsector of the economy. of Some the measuresinclude upgrading production and Islamimplemented by The Karimov. Anti reached highest GDP in2016at its recorded

US$ US$ (Billions) $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 1000 1500 2000 2500 4 - $0.00 500 : Uzbekistan's: p GDP 2008) or the 0 651.42 13.36 1990 1990

1991 1991 1992 1992 AN AN

er Capita(1990 1993 World World

1993 1994

Figure Figure 1994 Figure 4:Uzbekistan’s GDP per Capita (1990-2016)(US$) -

1995 Figure 3:Uzbekistan’s GDP (1990-2016)(US$Billions) 8%; 1995 1996 Financial(2008) Crisis duethe toAnti 3 1996

- stimulatin Uzbekistan's(1990 GDP

2016) (US$) 1997 seen GDP CapitaPer 1997

1998 Nominal GDP Capita 1998 a rising

1999 seen

1999 - Crisis Program focu Crisis

2000 and $67 billion 2000 g

an upwardan trend 383.35 2001 the domesticmarket in demand

2001 9.69 2002 15 overlast trend the Year 2002 Year

2003 - 2016)(US$ Billions) 2003 2004 2004

2005 this this 2005 2006 after

2006 aimedsupport to onpolicies sed 2007 is expected torise. 2007

2008 in lowest reached its point it 2008

2009 years. 2009 2010 2010 - Crisis ProgrammeCrisis

2011 Uzbekistan’s GDP 2011

2012 etc 2012

2013 . Uzbekistan 2013 2014

2,110.65 2014 2015

2015 67.22 2016

22 21 2016

predicted to go as $2.65billion as high in2017,according to office the the of President of Uzbekistan. opportunities and increased FDI from $0.62billion to $1billion from 2014-2015.The inflow of FDI is closure of border, the andexemptions. fiscal These changes policies in resulted in favorable investment Since has country the promoted then, commercial have which policies included customs high tariffs, on Uzbekistan’s economy and resulted implementation in the of and structural economic reforms. aftergrowth.gradualwhich it experienced A sharp decline in FDI in 2012 of 65%, had a major impact Foreign Direct Investment (FDI) inUzbekistan relatively had been stable 1992and between 2006, 2.1.5. Foreign DirectInvestment(FDI) possibly due to adoption the of Anti-Crisis the Programme by late the Uzbek President, Islam Karimov. from economic the and financial downturnsthat have plagued many countriespastthe in few years, thing that is apparent from graph the below is that Uzbek the economy more has been or less insulated last the 15years,10%. Over on an average, Uzbekistan growing has been at ahealthy rate of 7.16%.One enjoyingbeen apositive growth rate. The GDPgrowth rate reached pointits highest in2007 at about lowest the 1992 being point with agrowth rate of negative 11%.From 1996onwards Uzbekistan has Uzbekistan went through a rough patch early in the years after its independence fromi.e. 1991 to 1995; 2.1.4. EconomicGrowth UZBEKIST OF REPUBLIC Figur ProgrammeIslam President, by thelate Uzbek Karimov. years,plaguedthe in past manyfewof countries the Anti possiblythe toadoption due financialdownturns that orthe economic and lessinsulated economyfrom has more been that t graph is the below at Oneapparentarate of thatis from healthy7.16%. thing years,growing average, Uzbekistan has onanbeen 15 Over the 2007 atlast inabout 10%. point Uzbekistan hasbeengrowth rate. enjoying aGDP growth positive rate reachedThe highest its onwards From 1996 rateof negative 11%. growth a with lowestpoint 1992 being1995; the yearsindependenceafter from aits Uzbekistan1991 to wentthe rough i.e. inearlythrough patch Economic Growth 2.1.4.

e Percentage -15 -10 5 10 15 -5 : Uzbekistan'sGDP: Rate Annual (1990Growth 0 5 1.60 1990

11.20 1991 1992

AN 1993

1994

Figure 5:Uzbekistan’s Annual GDP Growth Rate (1990-2016) 1995 Annual GDP Growth Rate GDPGrowth Annual

1996 1997 1998 1999 - 2016) 2000 2001

2002 Year 2003

2004

2005 2006 9.92 2007

2008 2009 2010 2011 2012 2013

2014 he Uzbek

2015 - 7.80 Crisis Crisis 2016 have

13 REPUBLIC OF UZBEKISTAN 2017 14 REPUBLIC OF UZBEKISTAN 2017 constant hovering 8.9%and between unemployment 9.4%.the rate in2016was estimated at 8.89%. past the 25 yearsOver since Uzbekistan independent, became unemployment the rate relatively has been 2.1.6. Unemployment invest exploration inthe of hydrocarbon deposits. invested $2.6billion for achemical production plant. Japan, along with South Korea have agreed to also Uzbekistan. South Korea amajor been has also since trading 2011and partner is reported to have promisedhas also to invest $5billion mining inthe and sector help inimproving within infrastructure included launch the of a pipeline extension, Asia Central links which and Along China. with China this, cooperationChinese has paved way the for flowsChina trade easy between and thisUzbekistan, has UZBEKIST OF REPUBLIC Figure estimated at 8.89%. relativelyconstanthovering between 9.4%. 8.9% the and unemploymentrate 2016 wasin yearsOver 25 the past sincebecameUzbekistan independent, the unemployment been rate has Unemployment2.1.6. UZBEKIST OF REPUBLIC from2014 $1 billion and FDI tofrom increasedpolicies resulted$0.62 billion investmentopportunities favorable in included high country economic then,has the reforms.Since major impacton Uzbekistan’s economy andthe inimplementation resulted of structuraland 2006, aftergrowthgradual which experienced it Investmenthad(FDI)relatively Foreign beenbetween 1992and Uzbekistan stable in Direct Foreign2.1.5. Direct Investment Chinese cooperation has pavedChinese cooperationeasy has theforway trade according tothe KoreaSouth also have of agreedtheexploration hydrocarbon toinvest in deposits. a chemicalproduc for $2.6 billion invested have to andreported is 2011 since tradinga partner major also been Korea has South infrastructure Uzbekistan. within helpimproving in and sector the inmining $5 billion invest to China has alsothis, promised hasincluded the

Percentage 10 7 US$ (Millions) 1000 1200 1400 1600 1800 0 1 2 3 4 5 6 7 8 9 ment Rate (%Uzbekistan's: Rate Unemployment labor total force) (1990 of -200 200 400 600 800 0

1990 $9.00 8.98 1991

customs office of the office of

1992 andwhichCentral China. Along with links Asia extension, of a pipeline launch Foreign Direct Investment, Net Inflows Investment,Direct Foreign

Figure 7:Uzbekistan’s Unemployment Rate (%of total labor force) (1990-2016)

1993 Figure AN - AN Figure 6:Uzbekistan’s Foreign Direct Investment, Net Inflows (1992-2015) 2015. The inflow of FDI is predicted to go as high as $2.65 billion go as high as predicted FDI to is of The inflow 2015.

1994

tariffs,These offiscalclosure the border, andexemptions. changes in

1995 6 : Uzbekistan'sDirect: Foreign (1992NetInflows Investment, 9.30

1996 President ofUzbekistan.

1997 Unemployment Rate

1998 (FDI) 1999

2000 2001 2002 . A sharpFDI 2012of declinein 65%, had a in Year

2003 Years promoted

2004 flows 2016) 2005 $173.80

2006 and Uzbekistan, between China commercial policies which have commercial 2007

2008 tion plant. Japan, along with alongJapan, plant. tion 2009 -2015 2010 $1,635.15 )

2011

2012

2013 2014

$1,068.39 2015 in 2017, 8.90 2016

this this 25 24

(Pakistani Rupees) as of 25 is UZS.лв code 4217 currency 1 over medium the term. hyperinflation theduring first fewyears, it is an improvement. Inflation to expected is stay under 10% last In decade. 2016,inflation had dropped ahigh to 8%.This is,still rate ofinflation but considering the 500% in1993.Through sustained efforts the by government, inflationfalling gradually the in been has from a communist to a free-market economy. In its first inflation decade reached 1500% in 1994 up from The independence of Uzbekistan brought rates high with it very of inflation transaction the as country 2.1.8. Inflation So’m of is currency Uzbekistan. the The symbol So’mfor is лв 2.1.7 Currency The independence 2.1. UZBEKIST OF REPUBLIC 1 Tiyin. The So Currency 2.1.7 (US Dollars) improvement. Inflationimprovement. expected tostay is over 10% the under mediumterm. highconsidering rate of hyperinfl inflation but the hasbeen fallinggradually Inthe decade. inlast 2016,inflationhad dropped8%. to Thisstill is, a 1500%1994 upfrom in 500%1993.Through in sustained efforts transited from a communist to a to free atransited communist from

ISO 8 – Percentage ISO–International Organization for Standardization

. Inflation 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 International Organization for Standardization Standardization for Organization International 0.0 The ISO ’ m is the currency of Uzbekistan. The symbol for the currency ofis So m Uzbekistan. The symbol 1996 and Rs0.0252 (PakistaniRupees)of 25 asand Rs0.0252 1997

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th August 2017. 8 2000 : Uzbekistan's Inflation Uzbekistan's (2006: Inflation Rate 1 (Uzbekistani So’m) is to equal US$0.00024(USDollars) and Rs0.0252

2001 2002 Inflation rate 2003 - market economy. In inflatfirst decade economy. its market 2004

Inflation rate Inflation 2005 лв

1 2006 Year (Uzbekistani So’m) veryratesas high the of inflation -2016 ation during the first few years,fewation duringa is first it the

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15 REPUBLIC OF UZBEKISTAN 2017 16 REPUBLIC OF UZBEKISTAN 2017 production from agriculture, mining, fishing and forestry. manufacturing of machines textiles, and hydrocarbon includes sector and extraction; Primary the Tertiary mainly sector and includes telecommunication; financialservices sector includes Secondary the (Manufacturing)- 50%,Secondary (Agriculture, –33%and Primary mining and fishing) -17%. The The differentsectors economy of which contribute to Uzbekistan’s GDPtotal are: (Services) Tertiary 2.2. Sectorsof reached 8%. rateyears, gradually policy declining the has along been with inflation; it was 9%in2016 as inflation fluctuations since it reached its in1995. apex been It hasrelatively Overthelaststable 10 since 2004. interest rates proportionately. decreased also ratepolicy The been hason adeclining trend somewith at second 300%inthe quarter of 1995afterwhich cameit down to 30%in1997. As inflation eased, ratespolicy by of Bank Central Uzbekistan. the ratepolicy The monetary reached pointits highest early the During years of Uzbekistan, issues faced country the like hyperinflation. high led This to very 2.1.9. MonetaryPolicy UZBEKIST OF REPUBLIC Figure inflation; it years,stable since 2004.Over10 last the the policyrategradually has been de It1995. in relatively been reached fluctuationshas decliningapex since its some it with trend As inflation highest the second atafter300%point quarter camedown in of it 1995 which Bankpolicy the veryCentral Uzbekistan. The policy of monetary high by rate reached rates its Duringea the 2.1.

Percentage 9 9 . Monetary Policy Monetary . : Uzbekistan’s 2.2.1. Tertiary Tertiary 2.2.1. (Services) The differentsectors economy Uzbekistan’s of to tota contribute which Economy the of 2.2. Sectors UZBEKIST OF REPUBLIC driversgrowth of inthe surpluses.Over years, the past5 trade, financial services,and were telecommunications th underpinned stability, on was anchored by macroeconomic growth services in contributing halfGDP. The grewof sector the 2011. 2007 to by13.3% annum per from Strong Over the fishing) HeritageWorld S Moreover,5 of with spots. UNESCO’s countryconnectalsoblessed the tourist the various is Bukharasmoothly Uzbekistan has andnumerous connected and Samarkand. that roads pathways past 5 years. The famous Silk Road’s Touris foreign lowpenetration themaingrowth investment was dueto rates factor. mainly by strong domestic demandlend and domestic and thePrimary includes sector productionagriculture, from mining,forestry. fishingand the Secondary manufacturing includes sector of textile was

eased rly years Uzbekistan, the rlycountry led of Thistofaced issueslike hyperinflation. m accounts for only 0.2% of the accounts onlym 0.2%of for 9% in2016as inflationreached 8%. - Monetary Rate Policy (1996 past five years,fivepast thetertiary hasUzbekistangrownbecome in to sector thelargest sector

, interest rates , interest alsodecreased proportionately. The policy rate has ona been 17%. The 17%. The -

50%, Secondary(Manufacturing) AN Sector the Economy

Distribution of GDP by Economic Sectors ites.

Figure 10:Distribution of GDP by Economic Sectors for Uzbekistan AN

Tertiary Figure 9:Uzbekistan’s Monetary Policy Rate (1996-2016) Figure Figure

services 10:

Tertiary sector mainly includes financial services and telecommunication;financial and mainly includes sector services Distribution ofGDP by Uzbekistan for Economic Sectors 50%

sector, posting a growth posting combined2011, supportedsector, in 24% -2016)

Policy Rate

3 most 3 most importantcitiesKhiva, Uzbekistan; are in located

services

Primary 17% Secondary 33% sector output and has seen little growthlittle and the output hasover seen sector – Year

33% and Primary(Agriculture, mining and

ing. Ining. the increased telecommunications, s, machiness, andhydrocarbon extraction;

l GDP are: Tertiary

trade and fiscal and fiscal trade clining along with to 30% in 1997.

e main 28

up for most of foreign the exchange earnings of Country. the Uzbekistan is 9 the Mining and of extraction minerals is of utmost importance to economy the of Uzbekistan. makes Gold 2.2.3. PrimarySector first quarter whichlater of 2013, increased to 6.6%in2016. of high time second 41.12%inthe quarter ofgrowth 2006.The rate reached its lowestpoint the of 6%in Industrial Production Index of Uzbekistan grew on an average by 19.91% since 2004 and reached an all- of and fruits vegetables country. inthe (ROK).Daewoo Food-processing is second the largest inUzbekistan industry of because abundance the automotive and country inthe has industry joint agreements with Daimler-Benz (Germany) and are country in the wool, cotton and and processing. silk food Uzavtosanoat is key player the inthe drivenhas by been raw materials cotton extraction, production and minerals. The dominant industries sector makes secondary Theup for 33% the GDPof of sectorUzbekistan. The industrial of Uzbekistan 2.2.2. SecondarySector tourist spots. Moreover, with blessed 5of is also country the UNESCO’s World Heritage Sites. Samarkand. Uzbekistan has numerous smoothly connected roads and pathways that connect various the years. The famousRoad’s Silk 3 most important cities are located in Khiva,Uzbekistan; Bukhara and Tourism accounts for output sector only 0.2%of services the and little has seen growth over past the 5 rates was main the growth factor. and domestic lending. In telecommunications, increased foreign the investment due to low penetration sector,services acombined posting 24%growth in2011,supported mainly by strong domestic demand andpast 5 years,telecommunications trade, financialservices, werethe main drivers growthof the in was underpinned by macroeconomicservices stability, anchoredOver onthe and trade surpluses. fiscal contributing of half GDP. the sectorgrew The per by 13.3%annumfrom 2007 to 2011. Stronggrowth in sector in past the fiveOver years,the tertiary Uzbekistan grownhas become thelargestto sector 2.2.1. Tertiary Sector is an important source for family incomes areas. rural inthe million in1999to 10million in2015.This has led to an increasethe in production of whichmeat &milk In &livestock addition, on thrust the dairy has to led an increase number inthe of cattle heads from 4 products agricultural andOther silk vegetables like fruits, contribute another 8%to country’s the exports. cultivationThe wheatof has fromjumped 1million hectares in1999 to 2.3million hectares in2015. security. It has reduced its cotton acreage from 2million hectares in1999to 0.5million hectares in2015. shifting started country the its cotton productionwheat to and cropsother ina bid to increase its food was designated main the cotton growing region for former the However, USSR. after independence, major crops grown is cotton country inthe of Uzbekistan when erapolices Soviet the is which alegacy Agriculture makes up 17%of Uzbekistan’s GDP and employs 28%of total the work force. One of the gas, oil and other such metals as copper, lead,zinc and uranium worldin the tons (2016)with 100metric of mine production. hasalso a Theplethora country of natural th th largest gold producer 17 REPUBLIC OF UZBEKISTAN 2017 18 REPUBLIC OF UZBEKISTAN 2017 The Ark number of ancient monuments such as: on famous the Route Silk that connected and Middle the East Europe to Bukhara China. is home to a More 2000years the old, example Bukhara is perfect the city of Asia. inCentral amedieval It is situated 2.3.1. HistoricCenterofBukhara withblessed 5of UNESCO’s World Heritage Sites. diversity. It is home to some of most the beautiful examples of Muslim architecture. Uzbekistan is also and are which major tourist attractions. Uzbekistan’s has richhistory given life to its architectural The famousRoad’s Silk 3 most important cities are located in Khiva,Uzbekistan; Bukhara and Samarkand, 2.3. Tourism i.

The Arkgrand – A fortress built in 5 Bukhara in1920. It was damaged by Army Red the during Russian the War Civil amidst Battle the of th century AD as residence the of Bukhara’s Amirs. Char Minar Char Po-i-Kalyan Mosque iii. ii. became famousbecame as Tower the of Death. Khanate of Bukhara. The Kalyan Minarat as a place used also for was executions thusand Po-i-Kalyan Mosque and Minarat -Kalyan Mosque was completed in1514,during the heritage monument. Char Minar –It is ahistoric mosque completed in 1807.It is protected as acultural 19 REPUBLIC OF UZBEKISTAN 2017 20 REPUBLIC OF UZBEKISTAN 2017 as Ulugh-Beg’s Observatory. and Madrasas, Bibi-Khanym Mosque, compound Shakhi-Zinda the and Gur-Emir the ensemble, as well Bibi Khanym Mosque The historic town was foundedthe 7 in 2.3.2. Samarkand Registan ii. i. largest mosqueintheIslamic World inthe15 Bibi KhanymMosque–Oneofthemostimportant monuments inSamarkand. It wasthe by threemadrassas’. Registan –ItwasthepublicsquareatheartofSamarkand. The squareissurrounded th century BC. The major century BC. monuments includetheRegistan Mosque th century. Itchan Kala architecture Asia. inCentral are anumber of famous monuments, mausoleums and madrasas that influence highlight the of Muslim as aresting and placebrink walls for past inthe served caravans traveling to Persia. In addition, there Itchan Kala was inner the town of old cityKhiva situated on Route. Silk the It is covered by 10m high (Khiva) 2.3.3. ItchanKala Shah-i-Zinda iii. was formedoverninecenturiesandincludesmorethan20buildings. Shah-i-Zinda – A necropolis locatedinthenorth-eastern partofSamarkand. The complex 21 REPUBLIC OF UZBEKISTAN 2017 22 REPUBLIC OF UZBEKISTAN 2017 Shakhrisyabz Shakhrisyabz cultural center of Kesh the region 14 inthe 2,000yearsOver old and located on Route Silk the inSouthern Uzbekistan, it and was political the 2.3.4. HistoricCentreofShakhrisyabz monuments and ancient quarters found can which be within walls. its medieval th and 15 th centuries. It contains of acollection beautiful Western Tien-Shan to range awide of forests and aunique plant community. Shan range is of importance global as site the of origin for many of cultivated the crops. fruit It is home from Tashkent, is which capital the of Uzbekistan. Its altitude ranges from 700mto 4,503m.The Tien- The Western Tien-Shan is one the longestof mountain rangesthe in world; it stretcheseastkm 2,800 2.3.5. Western Tien-Shan 23 REPUBLIC OF UZBEKISTAN 2017 24 REPUBLIC OF UZBEKISTAN 2017 the transportationthe of oil are: which Uzbekistan imports oil and its derivatives from Russia and Kazakhstan. Two major pipelines are for used 2.4.1. Oil 2.4. Oiland 2. 1. Tashkent, Uzbekistan. The pipeline to import is used from oil Kazakhstan. The Shymkent – Tashkent pipeline instarts the at refinery Shymkent, Kazakhstan runs and to –UzbekistanKazakhstan and Shymkent to Uzbekistan. pipeline to transports is used oil from Siberian city the of Omsk through Pavlodar, Karaganda It is an international oil pipeline that transports petroleum from Russia to Uzbekistan. The The OmskChardzhou – pipeline inOmsk, starts Russia and endsChardzhou, in Uzbekistan. Russia –Uzbekistan Gas Pipelines Figure 11:Map of Central Asian Oil Pipelines second most product exported from Uzbekistan. The major gas pipelines are: There are a number of natural gas pipelinesthat originatefrom or cross Uzbekistan. Natural Gasthe is 2.4.2. Gas 4. 3. 2. 1. used to export gas to to export Afghanistan.used Afghanistan. The reference code for Mazar-i-Sharif –Samarkand Pipeline is G1. The pipeline is The international pipelinefrom starts Samarkand, Uzbekistan and ends at Mazar-i-Sharif, Uzbekistan -Afghanistan reference for code Kungard the –Chelyabinsk Pipeline is D58. to Chelyabinsk, Russia. It is major the pipeline for Uzbek natural to gas exports Russia. The Kungrad -Chelyabinsk Pipeline is an international pipeline that from goes Kungard, Uzbekistan Uzbekistan -Russia and ends inAlma Ata, Kazakhstan. It is an international pipeline with reference the D5. code ChembarThe FieldAlma – is a Ata natural gas pipelinethat Chembar in starts Field, Uzbekistan Uzbekistan -Kazakhstan Chembar field, Uzbekistan. naturalIt is alocal gas pipelinewiththe reference D56. code The AndienhanChembar - Field frompipeline starts Andienhan, Uzbekistan and ends at FieldPipelineAndienhan -Chembar Figure 12:Map of Central Asian Pipelines Gas 25 REPUBLIC OF UZBEKISTAN 2017 26 REPUBLIC OF UZBEKISTAN 2017 3. 2. 1. gas to Russia is delivered through CAC the pipeline system travels through Uzbekistan Khiva, Kazakhstan. and Most Beyneu, of Uzbek and Turkmen natural One pipeline originates from Okarem, Turkmenistan and ends at Alexandrov Gay, Russia. It Asia–CenterCentral Pipeline Gas System natural gas to China. of Uzbekneftegas and CNPC. Central the China – uses Asia also Uzbekistan pipeline to export entering Work China. on Uzbek the of part pipeline the on started 30June 2008as ajoint venture ofpart to China its This eastern part. pipelinethrough goes Uzbekistan and beforeKazakhstan of From China. Horgos, it connects to West-East the Gas Pipeline from goes which western the in Saman-Depe, Turkmenistan and ends at Horgos, Xinjiang province Peoples inthe Republic Asia–ChinaCentral gas pipeline known also as Turkmenistan-China gas pipeline originatess Asia-China Pipeline Central mainthe source of gas supply for Kyrgyzstan and southern of the parts Kazakhstan. and finally Almaty–Kazakhstanto in1971. TheBukhara–Tashkent–Bishkek–Almaty pipeline is in 1967. In pipeline 1968, the reached Tashkent, in 1970 it was extended to Bishkek in Kyrgyzstan Thisthe is main export pipeline for Uzbekistan’s naturalConstruction gas. the of pipeline started Bukhara–Tashkent–Bishkek–Almaty pipeline September 2016,Uzbekistan had finishedkm 104 thekm 129 of the of Uzbek stretch the railroad.of north-south railway connecting link Russia-Kazakhstan-Kyrgyzstan-Tajikistan should built be first. By in 2015.There havesome been internal conflicts inaboutKyrgyzstan OBOR as some thatargue the cost. After prolonged arailroadChina, talks, linking Uzbekistan and was agreed Kyrgyzstan upon important trading partner, having could adirect link potentially improve through trade lower freight Currently there Uzbekistan is no direct between rail link and Since China. is China Uzbekistan’s most Angren Economic and Industrial Zones. to about $6.5billion already. Some joint projects have implemented been also such as Jizzakh the and construction, of all pass which through Uzbekistan. investment Chinese Uzbek inthe economy amounts Gas– China Pipeline is one such project; three pipelines have laid already and been afourth is under made indevelopingbeen Uzbekistan’s natural and gastransportation reserves systems.Central The Asia In Uzbekistan, foreign investments related to cover OBOR range awide of sectors. Investments have completed.been promises OBOR to bring strong economic development Asian Central inthe region. to invest intransportation projects such as railroads, roads and tunnels; some of have which already Uzbekistan’s economic development initiative. with OBOR the aligned has model been has China agreed member states. inits final OBOR, Road. form,Silk will provide energy, culturalandtechnology exchange amongstthe One Belt One Road (OBOR) is a Chinese led initiative. led is (OBOR) aChinese One Belt Road It is 21 the 2.5. OneBelt One Road(OBOR) Figure 13:Map of the One Road One Belt Project st Century version Century of ancient the 27 REPUBLIC OF UZBEKISTAN 2017

State Museum of History of Uzbekistan, Tashkent, Uzbekistan SECTION III Trade 30 REPUBLIC OF UZBEKISTAN 2017 in 2016from $13.5billiontrade deficit in2014.The in2016 was $2.16billion. without any significant After inexports. 2014, rise startedfall; to imports importsreached $9.1 billion US$ 6.5billion as imports rose to $13.5billion.trade deficit The becan attributed in rise toa imports tostarted turn negative. The deficitreached itshighest point in2014 a negativewith balance trade of Uzbekistan’s stayed 2007 aspositive exports balance had of been till trade ahead imports afterwhich it Turkey.and majorthe trading of partners Uzbekistan are Russian the China, Federation, Switzerland, Kazakhstan Uzbekistan’s top imports are vehicular machinery, parts, iron and steel and pharmaceuticals. Additionally, The major exports of Uzbekistan include gold, natural gas, pure cotton yarn and refined copper. valued atgoods $9.1billion; resulted this inanegative balanceof trade about $2.1billion. (ECI) (2015).In year the 2016,Uzbekistan and $7billion exported imported worth of and goods services Uzbekistan is world’s the 70 3.1 Trade (2016). It is ranked as 97 the Uzbekistan is the world’s 70 the world’s is Uzbekistan Overview 3.1 Trade UZBEKIST OF REPUBLIC was $2.1 reachedfall;2016 fromto imports in 2014.The billion in $13.5 billion $9.1 trade2016 in deficit attributeda to riseimports in any without rise significant be can tradedeficit The $13.5 billion. to asrose imports billion 6.5 US$ trade of balance negative a 2014with in highestpoint negative. reached its deficit turn The to which started it Uzbekistan’strade balance had till positive been stayed2007 asexports ahead of imports KazakhstanSwitzerland, and Turkey. are China, of tradingUzbekistan partners Additionally, major the machin are Uzbekistan’s vehicular imports parts, top yarnThegold, of major Uzbekistan includegas,cottonand exports natural pure refined copper. of about $2.1 billion. and servicesan Complexity Index (ECI) (2015). In Bank (2016)

US$ (millions) 6 billion. . It Overview d imported d imported

is rankedis asthe 97 AN

Figure Figure

Figure 14:Uzbekistan’s Trade (2001-2016) (US$Millions) overview th th goodsvalued at largest economy innominal GDP terms according to World the Bank most complex economy according to Economic the Complexity Index : Uzbekistan's Trade overview (2001 TradeUzbekistan's overview 14: th

largest economy in nominal GDP terms according to the World largest World GDP nominalterms according the to in economy the Trade Overview

th year 2016

mostcomplex economy accordingthe toEconomic $9.1 billion , Uzbekistan exported$7 worthof billion goods Year ery, iron and steel and pharmaceuticals. and pharmaceuticals. steel iron ery, and

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Russian Federation,Russian

after

31 REPUBLIC OF UZBEKISTAN 2017 32 REPUBLIC OF UZBEKISTAN 2017 Table 3:Uzbekistan’s Imports Product Wise (HS-02)(2012-2016)(US$Millions) of total imports, shows which that Uzbekistan imports range awide of goods. inimports 2012&2016.The between top 25imports observed be for Uzbekistan contribute about 33% therapy, medium oils and accessories for vehicles comprise most of imports. the Adecreasing trend can tableThe below shows imports at HS-06level forthelast fiveyears. It shows thatmedicaments for The top 10imports Level contributeat HS-02 about 66% the of total imports of Uzbekistan. declining over years the has since country the adopted of self-reliance apolicy inproducing some goods. comprise mainly of machinery, mechanical appliance and vehicles. Imports have however have been tableThe below shows imports of Uzbekistan overthelast fiveyears, level. atHS-02 Imports of Uzbekistan 3.2.1. Imports 3.2. Trade Trend: Products Product Code Product Code '870323 '721070 '151219 '110100 '440710 '100199 '870899 '999999 '271019 '300490 '721049 'TOTAL 'TOTAL '44 '88 '73 '39 '27 '30 '72 '85 '87 '84 All products Product Description Motor carsandothermotorvehicles principally... >= 600mm,... Flat productsofironornon-alloysteel,awidth Sunflower-seed orsaffloweroilandtheirfractions,... Wheat ormeslinflour Coniferous woodsawnorchippedlengthwise,... wheat) durum Wheat andmeslin(excludingseedforsowing, andaccessories,fortractors,motorvehicles... Parts Commodities notelsewherespecified bituminous minerals... Medium oilsandpreparations,ofpetroleumor Medicaments consistingofmixedorunmixed... of >=600mm,... Flat-rolled productsofironornon-alloy steel,ofawidth Wood and articles ofwood;woodcharcoal Wood andarticles thereof andparts spacecraft, Aircraft, ofironorsteel Articles thereof Plastics andarticles distillation … Mineral fuels,mineraloilsandproductsoftheir products Pharmaceutical Iron andsteel … thereof andequipmentparts Electrical machinery All products Vehicles otherthanrailwayortramwayrolling… thereof boilers; parts Machinery, mechanicalappliances,nuclearreactors, Product Description 10,965.9 10,965.9 1,496.7 1,946.9 208.3 133.3 291.0 320.8 660.8 320.3 306.4 356.2 143.3 511.3 233.9 520.5 344.9 685.0 485.6 626.0 702.4 2012 2012 42.7 90.8 12,882.9 12,882.9 1,730.5 2,180.2 103.1 120.2 263.1 142.8 273.2 429.9 639.9 370.5 468.0 418.2 202.5 662.4 231.9 768.9 469.9 823.8 572.9 763.5 819.3 2013 2013 13,580.2 13,580.2 1,021.0 1,597.8 2,529.8 142.6 153.7 155.7 156.5 232.5 413.7 564.9 243.9 480.4 492.8 184.0 640.9 152.4 627.4 498.9 737.5 685.0 803.8 2014 2014 10,478.5 10,478.5 1,005.5 2,021.5 105.5 206.1 195.4 210.8 352.7 147.5 489.2 439.5 132.7 824.0 361.0 105.4 345.4 449.4 616.5 635.9 598.8 2015 2015 99.7 99.6 9,140.9 9,140.9 1,631.2 101.7 107.1 201.8 127.5 166.5 260.5 336.4 338.4 353.4 709.3 303.5 307.5 318.0 368.5 474.6 521.5 530.4 842.3 2016 2016 98.4 97.8 Table 4:Uzbekistan’s Imports Product Wise (HS-06)(2012-2016)(US$Millions) '851761 '880230 '870322 '870840 '260800 '848180 '841480 '730890 '270900 '851762 '870422 '401110 '961900 '540752 reception … Base stationsofapparatusforthetransmissionor 2000 kgbut<=15000...... weight> Aeroplanes andotherpoweredaircraft designed ... Motor carsandothermotorvehiclesprincipally thereof, fortractors,... Gear boxesandparts Zinc oresandconcentrates Appliances forpipes,boilershells,tanks,vatsor...... Air pumps,airorothergascompressorsandventilating ofironorsteel... ofstructures, andparts Structures minerals, crude Petroleum oilsandobtainedfrombituminous transmission or... Machines forthereception,conversionand Motor vehicles for the transport ofgoods,with... Motor vehiclesforthetransport motor cars... New pneumatictyres,ofrubber, ofakindusedfor towels(pads)andtampons,napkins... Sanitary Woven containing>=85% by... fabricsofyarn 113.4 133.0 153.0 309.9 2012 46.0 35.8 17.9 84.9 48.9 90.9 25.4 2.8 9.4 - 134.0 262.9 2013 23.7 37.9 61.7 86.5 45.3 62.0 74.7 28.3 86.6 39.6 4.8 - 148.1 113.7 154.1 120.6 2014 37.2 14.7 67.4 85.2 58.4 49.0 42.8 79.5 47.3 - 119.9 2015 19.9 90.2 90.0 39.6 83.9 56.6 66.1 56.8 43.8 42.0 60.4 44.4 2.2 2016 88.8 52.1 61.2 74.5 54.2 54.9 60.9 64.3 67.6 50.2 48.7 47.6 47.0 47.3 33 REPUBLIC OF UZBEKISTAN 2017 34 REPUBLIC OF UZBEKISTAN 2017 exports to world. the exports largestthe commodity. export The top 25 exports of Uzbekistan at HS-06 level represent 85% of its total tableThe below shows classified according exports the to Harmonized Systemlevel. –06 Gold, is by far productexports at wise HS-02level. showsthis Uzbekistan’s on dependence 10product these groups.table The below shows Uzbekistan’s wheat and other crops. The top 10exports of Uzbekistan at HS-02add up to 92% of its total exports and byhas fallen about 50%over past the 5years primarily due tofrom ashift growing cotton growingto mining output. TheGoldalone export of makes up about 40% of its The exporttotal exports. of cotton table below, trend export the for natural pearls and gold of increased because increase the country’s in the The exports of Uzbekistan mainly depend on gold,fuels, mineral cotton and copper. According the to 3.2.2. Exports Table 5:Uzbekistan’s Product Exports Wise (HS-02)(2012-2016) (US$Millions) Product Code Product Code '080620 '790112 '520514 '520512 '520100 '740311 '284410 '390120 '271121 '710812 'TOTAL 'TOTAL '79 '07 '61 '28 '08 '39 '74 '52 '27 '71 All products Product Description Dried grapes 99,99% ofzinc Unwrought zinc,notalloyed,containing byweight< 85% … ofuncombedfibres,containing>= Single cottonyarn, 85% ... ofuncombedfibres,containing>= Single cottonyarn, Cotton, neithercardednorcombed of cathodes Copper, ofcathodesandsections refined,intheform Natural uraniumanditscompounds;alloys... forms primary Polyethylene withaspecificgravityof>=0,94,in Natural gasingaseousstate Gold, incl.goldplatedwithplatinum,unwrough… Zinc and articles thereof Zinc andarticles rootsandtubers Edible vegetablesandcertain crocheted ofapparelandclothingaccessories,knittedor Articles … Inorganic chemicals;organicorinorganiccompounds ormelons fruit andnuts;peelofcitrus Edible fruit thereof Plastics andarticles thereof Copper andarticles All products Cotton distillation ... Mineral fuels,mineraloilsandproductsoftheir stones ... Natural orculturedpearls,precioussemi-precious Product Description 6,428.9 1,072.7 6,428.9 1,447.9 109.4 133.0 450.8 288.8 270.0 658.3 2012 109.5 122.8 194.6 328.5 354.0 624.0 894.5 696.3 2012 34.4 68.7 32.7 62.5 8,489.6 1,194.1 1,769.0 8,489.6 1,356.2 1,586.0 1,804.1 102.4 170.3 894.4 446.9 393.8 2013 102.5 220.7 218.0 444.4 351.6 611.9 2013 24.1 77.7 25.1 55.8 7,144.5 1,031.9 1,403.7 7,144.5 1,472.4 1,445.3 137.7 115.4 156.1 390.7 388.2 335.7 2014 115.4 216.5 178.4 381.6 350.4 598.0 925.3 2014 37.2 22.9 52.2 6,399.9 1,895.3 6,399.9 1,113.4 1,935.2 179.2 639.3 106.6 155.3 573.9 342.5 430.2 2015 106.6 174.2 153.0 463.2 267.8 570.2 666.9 2015 69.8 26.0 45.6 6,983.6 2,861.3 6,983.6 2,900.4 137.8 317.9 801.3 113.2 148.1 199.3 253.4 288.0 2016 392.3 114.8 127.4 187.9 323.1 390.5 455.2 720.9 813.7 2016 82.7 Table 6:Uzbekistan’s Product Exports Wise (HS-06)(2012-2016) (US$Millions) '610910 '711292 '390210 '080929 '740811 '080610 '740819 '520513 '081070 '070999 '870322 '070200 '080930 '080910 '520523 crocheted singletsandothervestsofcotton,knittedor T-shirts, platinum ... Waste andscrapofplatinum,incl.metalcladwith forms Polypropylene, inprimary (excludingsourcherries) Fresh cherries dimension of>6mm Wire ofrefinedcopper,a maximumcross-sectional with Fresh grapes dimension of<=6mm Wire ofrefinedcopper,a maximumcross-sectional with 85% ... ofuncombedfibres,containing >= Single cottonyarn, Fresh persimmons Fresh orchilledvegetablesn.e.s. Motor carsandothermotorvehiclesprincipally... Tomatoes, freshorchilled Fresh peaches,incl.nectarines Fresh apricots 85% ... ofcombedfibres,containing >= Single cottonyarn, 126.5 282.2 2012 91.9 10.2 75.2 88.1 36.3 31.3 18.5 16.0 26.8 17.7 19.4 - - 101.2 453.4 2013 97.2 42.3 48.7 28.7 57.2 28.9 51.1 32.3 22.5 19.8 62.0 19.6 0.0 358.1 2014 79.6 96.5 43.6 61.7 86.9 65.8 33.7 16.8 29.6 22.3 30.3 27.7 36.4 - 2015 70.3 63.5 15.7 72.3 66.3 55.0 27.0 10.5 28.5 44.8 36.2 12.8 11.1 22.3 0.1 2016 78.2 71.7 40.9 51.6 60.8 69.7 75.4 36.3 35.4 26.3 27.0 28.0 28.2 29.5 33.9 35 REPUBLIC OF UZBEKISTAN 2017 36 REPUBLIC OF UZBEKISTAN 2017 preparation of Study. this 2016listthe as data for Uzbekistan’s for exports Afghanistan in2016was not available at of time the countries. Although, with Afghanistan trade amounted to $336million in2015it is not included in dependent on any as its country partner, trade rather, its is distributed trade amongst anumber of Russianin the economy. We from can see table the and graph below that Uzbekistan is not fully Federation declined primarily of because financial the crisisin whichRussiacaused (2014), adownturn Uzbekistan to Switzerland comprise of gold and gold plates. other Onthe hand, to Russian the exports to SwitzerlandExports and have China increased over last the of 5years. Most of from exports the The major countriesthat Uzbekistanto exports are Switzerland,China theand Russian Federation. 3.3.1. Top 10ExportPartners ofUzbekistan(2016) 3.3. Trade Trend: Partners Table 7:Top Partners 10Export of Uzbekistan (US$Millions) (2012-2016) Rank 10 1 2 3 4 5 6 7 8 9 Switzerland (Importer) Country China Russian Federation Turkey Kazakhstan Kyrgyzstan France India Poland United StatesofAmerica Total 6,428.9 1,091.8 1,390.8 543.2 813.3 817.2 156.3 2012 63.2 33.6 31.4 26.3 8,489.6 1,539.0 1,938.1 1,256.9 815.4 970.1 167.8 2013 97.6 35.1 25.8 26.9 7,144.5 1,336.2 1,597.7 1,017.7 869.8 780.7 102.2 131.8 2014 39.1 29.1 15.1 6,399.8 1,884.2 1,266.8 575.8 711.6 725.7 177.3 2015 59.2 56.5 28.0 10.2 6,983.4 2,863.6 1,606.9 761.0 709.3 587.8 2016 69.8 66.1 46.5 32.4 31.2 UZBEKIST OF REPUBLIC Figure 15 : Top 10 10 Top : Figure 15:Top Partners 10Export of Uzbekistan (US$Millions) (2012-2016) Export

PartnersUzbekistan (US$ of Millions) (2012 AN

- 2016)

50 37

REPUBLIC OF UZBEKISTAN 2017 38 REPUBLIC OF UZBEKISTAN 2017 slump oil prices inglobal as well as Western sanctions over Ukraine over last the two years. withtrade in The fall risen. Russiabeen has attributed the devaluationto the of Russian Ruble due to a Russianthe Federation, Korea and Kazakhstan have that while from fallen, Japan and Lithuania have to $2 billion, yet it has largest the still share of Uzbekistan’s imports. last the During 5 years imports from Korea and Kazakhstan. Imports from however, China, have over fallen last the 3years from $2.6billion The top countriesfrom which Uzbekistan imports aregoods theChina, Russian Federation,Republic of 3.3.2. Top 10ImportPartners ofUzbekistan(2016) Table 8:Top 10Import Partners of Uzbekistan (US$Millions) (2012-2016) Country (Importer) Country 10 1 2 3 4 5 6 7 8 9 China Russian Federation Korea, Republic of Kazakhstan Turkey Germany United StatesofAmerica Italy Japan Lithuania Total 10,965.8 1,783.3 2,324.7 1,766.5 1,343.7 449.9 517.3 284.6 141.7 2012 97.6 48.2 12,882.9 2,613.4 2,803.9 1,968.0 1,145.3 562.5 572.3 356.4 121.5 122.9 2013 102.1 13,580.3 2,678.3 3,113.6 2,032.7 1,083.9 603.0 671.1 212.9 197.7 168.0 2014 133.2 10,486.4 2,236.4 2,221.2 1,284.2 942.3 488.7 478.9 138.0 154.2 251.3 2015 123.5 9,163.1 2,033.3 1,965.0 930.5 922.5 533.3 500.4 318.0 195.2 160.3 2016 125.7 UZBEKIST OF REPUBLIC

Figure Figure Figure 16:Top 10Import Partners of Uzbekistan (US$Millions) (2012-2016) AN

16 : 10 ImportTop

PartnersUzbekistan (US$ of Millions) (2012

- 2016)

39 REPUBLIC OF UZBEKISTAN 2017 40 REPUBLIC OF UZBEKISTAN 2017 and trade balance between Uzbekistanand balance between trade and members of OIC. negative trend due to rising imports and graphThe exports. falling below shows importsthe exports, surplus reached $1.3billion with members the of OIC. Since balanceof a the then, has trade seen Uzbekistan’s balanceof with members trade of OIC the has positive. mostly been In trade 2010,the English, and French. delegations to United the Nations and European the Union. The official languages the of OIC are Arabic, Muslim world spirit inthe of promoting international and harmony”. peace The OICpermanent has collective voicethe of Islamic the world. Its core is to “safeguard purpose and protect interests the of the OIC was founded in1969and consists of 57-member countries. The organization was foundedbe to 3.4.1. OrganizationofIslamicCooperation Commonwealth of independent states (CIS)and Economic the Cooperation Organization (ECO). Uzbekistan is amember of three major alliances: Organization of Islamic Cooperation (OIC), 3.4 Trade

UZBEKIST OF REPUBLIC Uzbekistan’s languages Arabic,OICFrench. are ofthe English, and Nation United the to OICdelegations haspermanent interests of the Muslim world ofthe in spirit promoting internationalpeace and harmony".The "safeguard andthe protect to Its is core purpose Islamicof world.collective the be the voice andOIC of founded consists was in1969 Organization3.4.1. Islamicof Cooperation Commonwealth ofindependent states(CIS) Uzbekistanof isamember three Alliances 3.4 Trade exports, imports and imports tradeexports, balanceand members between Uzbekistan of OIC. seen a negativerising trendto due OIC. Since of then the with members billion reachedtrade $1.3 surplus

US$ (Millions) Figure Figure Figure 17:Uzbekistan’s Trade with Members of Organization of Islamic Cooperation (US$Millions) (2007-2016) : Uzbekistan's17: Trade with Me balance of trade with members of tradeof members with balance of Alliances

Organization AN

major alliances mbers of Organization mbers of Islamic (US$of Cooperation Millions) (2007 i mports of IslamicCooperation 57 the and the - member

and falling :

the the Organization of IslamicOrganization ofCooperationC), (OI Year Economic Organization Cooperation OIC has has OIC

countries

s and the European Union. The official official Union.The European ands the

exports mostly . The organization The organization . . The graph below showsthe been positive. In the positive. 2010, been , the balance of trade has trade has balance of , the

was founded to - 2016) (ECO)

53 .

The Graphbelow shows Uzbekistan’swithtrade membersCommonwealth the of of Independent States. deficitwith members of CIS $2.7 reached billion in2014 whichafter a slight itexperienced improvement. reached $3.3billion to members in2011;2016,exports fell of to $1.5billion. CISfurther trade The lastthe 10years. The reason forrisingthe trade deficit becan attributedthey inexports fall after the to Although members the of CISparticipate agreement, trade inafree Uzbekistan has deficit had atrade for Free Trade Area. coordinating powers inareas of finance, lawmaking, trade.security and Membersparticipate the CIS in dissolution of Union; Soviet the members all were previously of apart Union. Soviet the CISpossesses confederationloose of nine-member states and two associate members. The CISwas formed after the CommonwealthThe of independence Statesknown also (CIS),the as Russian commonwealth, is a 3.4.2. CommonwealthofIndependentStates a loose confederation of The Commonwealth of independencealsoknown as States(CIS), the commonwealth,Russian is 3.4.2. Commonwealth of Independent States UZBEKIST OF REPUBLIC the a experienced $1.5 billion. afterexports theyreached $3.3billion deficityears. for the 10 last hasa tradeagreement,Although trade CIShad free a Uzbekistan of the participate members in M Union. CIS possessescoordinating in powers afterofall members Union; the Soviet the dissolution awere part previously of the Soviet embers participate intheCI Commonwealth of IndependentCommonwealth of States Figure Figure

Figure 18:Uzbekistan’s Trade with Members of Commonwealth of Independent States (US$Millions) (2007-2016) US$ (Millions) : Uzbekistan's18: Trade with MembersCommonwealth of of Independent States (US$ Millions)(2007 The trade deficitmembers with of CIS reached $2.7billion2014 after in which it slight improvement Commonwealth ofStates IndependentCommonwealth AN

nine- The reason the risingfor trade can deficit the tofall be in attributed S Free Trade Area. Trade Free S

member . The Graph shows Uzbekistan’strade below members with of

in 2011; in

states and states and .

areas

2016, two associate The members. CIS formed was Year

of finance, lawmaking, security and trade.

exports exports membersto of CIS further fell to

- 2016)

41 REPUBLIC OF UZBEKISTAN 2017 42 REPUBLIC OF UZBEKISTAN 2017 Organization. constant. The Graphbelow shows Uzbekistan’swithtrade members Economicthe of Cooperation billion. Since deficit the then, decliningbeen has due largeto a stayed inimports exports decrease while trade deficitThe was rising ona trend up when 2014; ituntil reached itshighest pointabout of $6.5 last the tenOver years, Uzbekistan’s with members trade of has constantly ECO negative. inthe been The objective is to establish asingle market muchforthe like services, and goods European Union. a platform to ways discuss to improve development and promote and trade investment opportunities. organization was which founded in1985Tehran by leaders of the Iran, Pakistan and Turkey. It provides Economic Cooperation Organization is aEurasian (ECO) and political economic intergovernmental 3.4.3. EconomicCooperationOrganization UZBEKIST OF REPUBLIC 3.4.3. negative. was u on a The rising tradedeficit up trend years,OverUzbekistan’s trade the ten last members with of ECOhasconstantly beenthe in goods like theEuropeanUnion. much and services, oppor promote tradeand investment andIt developmentways providesdiscuss to improve Pakistana andto platform Turkey. Iran, of by leaders the Tehran in 1985 in whichfounded intergovernmental was organization Economic Organization Cooperation Economic Cooperati while exports stayedwhile exports constant. of about $6.5 billion. Since then, the deficit has been declining due to a large decrease in imports a largedecreaseimports in to declining been due has the deficit Since then, billion. about$6.5 US$ (Millions) Figure Figure

Economic Cooperation Organization Economic Figure 19:Uzbekistan’s Trade with members of Economic Cooperation Organization (US$Millions) (2007-2016) : Uzbekistan's19: Trade with membersEconomic of Cooperation Organization (US$ Millions)(2007 Economic Cooperation OrganizationEconomic Cooperation on Organization AN

The Graphshows Uzbekistan’strade below members with of the . tunities. The objective is to establish a single market for establisha for single market objectiveThe to tunities. is

(ECO)

Years

is ais Eurasian politicaland economic ntil 2014; ntil

when it reachedit highest its point

- 2016)

of WTO. the Trade with members of makes up WTO for most of Uzbekistan’s with world. the trade preliminary the passed stages of accession and to WTO the is now negotiating with member countries observer. The process of accession intoWTO was commencedthe December in of 1994. Uzbekistan has a dispute resolution mechanism for its members. Uzbekistan is not a member of but WTO is only an participatingof between trade countries. It provides aframework for negotiating agreements trade and trade. It is largest the international economic organization world. inthe withWTO deals The regulation The World Trade Organization is (WTO) an intergovernmental organizationthat regulates international 3.4.4. World Trade Organization negotiating tradeand agreements a dispute resolu countries tradebetween participating dealsof regulation with internationalIt trade. the is largestinternational economic organization in the world. The WTO (WTO)organizati an is intergovernmental Organization TheTrade World 3.4. UZBEKIST OF REPUBLIC WTO makeWTO and WTO the Uzbekistan has commencedDecember of 1994. in but WTO anot of member

US$ (Millions) World Trade Organization4. Figure Figure Figure 20:Uzbekistan’s Trade with Members of World Trade Organization (US$ Millions) (2007-2016) s upfor mostofUzbekistan’swith the tradeworld. : Uzbekistan's20: Trade with MembersWorld Trade of Organization (US$ Millions) (2007 is now

AN negotiating with

World TradeOrganisation is

only an observer. The process of accession into the WTO thewas WTO into accession of The process anonly observer.

member countries of countries the member tion tion passed the preliminary stages of accessionto stagesof passed thepreliminary Year mechanism for its members.

. WTO It provides

. Trade with members of . Trademembers with of

on thatregulates a framework for for framework a -2016)

Uzbekistan is

43 REPUBLIC OF UZBEKISTAN 2017 44 REPUBLIC OF UZBEKISTAN 2017 Detailed data on FTADetailed these could not found. be FTA have with Kyrgyzstan, signed been Tajikistan, Ukraine, Azerbaijan, Russia, Moldova and Georgia. FTA, Uzbekistan has a number signed of bilateral agreements trade with members of CIS. Bilateral the States Free Trade Agreement and member is of 9th In the bloc. trade this addition to multilateral the CIS with members of organization. the Recently, Uzbekistan joined Commonwealth the of Independent Uzbekistan joined Economic the also Cooperation Organization in2003,to facilitate increased trade Uzbekistan of is apart anumber of Free Trade Agreements (FTA) with its neighboring countries. 3.4.5 RegionalFree Trade Agreements Table 9:Free Trade Agreements Signed by Uzbekistan Uzbekistan-Russia FTA Uzbekistan-Moldova FTA Uzbekistan-Kazakhstan FTA Uzbekistan-Georgia FTA Ukraine-Uzbekistan FTA Tajikistan-Uzbekistan FTA Kyrgyz-Uzbekistan FTA Economic CooperationOrganizationTrade Agreement Commonwealth ofIndependentStatesFree Trade Area Azerbaijan-Uzbekistan FTA Name ofFTA Signed andIn 3/25/1993 3/20/1998 7/17/2003 9/20/2012 5/27/1996 1/1/1995 1/1/1997 1/1/1995 1/1/2006 1/1/1996 Effect Members 10 12 2 2 2 2 2 2 2 2 Bibi Khanym Mosque, Samarkand, Uzbekistan SECTION IV Uzbekistan’s Trade Partners

which the trade balance has trade improved. the which from $0.8billion in2007to $2billion by last the two years 2016.Over imports have due to started fall to have substantially risen from $0.3billion in2007to $1.6billion in 2016. Imports, on other the hand, rose deficit atrade withChinahas seen overpastthe 10 years,withthe exception China to Exports of 2010. Bilateral and China between Uzbekistan trade has increased ten over times last the 10years. Uzbekistan 4.1.1. Trade Overview increase further. bringof will OBOR better connectivity two the countries between due to bilateralwhich may trade andof therefore, OBOR, is investing ininfrastructure, communication and transport. Completion development of Uzbekistan. Moreover, considers China Uzbekistan development inthe as akey partner important trading and partners a major source of foreign investment. This investment is essential forthe In recent years, Uzbekistan and have China developed strong bilateral is China one ties. of most the supported by understanding political two the republics. between other ‘Most Favored Nation’ status. Trade and economic relations and China between Uzbekistan are an Economic and Trade Agreement Uzbekistan between was signed and and China eachgranted the 1991,andDecember sincetwo the then countries have strengthened relations. political their In 1992, twothe countries. was first China the country to recognize Uzbekistan as an independent in country Economic relations and China between Uzbekistan have backed by been understanding political between 4.1. UZBEKIST OF REPUBLIC

US$ (Millions) China AN Figure Figure Figure 21:Uzbekistan’s Trade with China (US$Millions) (2007-2016)

: Uzbekistan's21: Tradewith China

Trade Overview China (US$ Millions) (2007 Years

- 2016)

47 REPUBLIC OF UZBEKISTAN 2017

48 REPUBLIC OF UZBEKISTAN 2017 Table 11:Uzbekistan’s Imports from China (HS-06)(US$Millions) (2012-2016) Table 10:Uzbekistan’s Imports from China (HS-02)(US$Millions) (2012-2016) HS-06 levels. polyethylene to $144milliontables in2016.The below show China exported to the goods at HS-02 and 2016 respectively. the exports in of rise Thecanbe plastics attributed the to sudden jump inexports of of plastics and copper have from risen $1.4and $3.3million in2015to $163.3and $78.1million in $348.5 million in2016,largely of because shift the incroppingpatterns from cottonwheat. to Exports However, of exports the cotton over to decreased China years the from $794.7million in2012to The most exported products China comprisedto fuels,of mineral cotton and inorganic chemicals. China. independence.trend The as increasingseen canbe of exports due the to ‘Belt andRoad’ initiative by to amounted China, Exports to $1,607.1million was in2016,which highest the since Uzbekistan’s 4.1.3. Exports imports from at China HS-02and HS-06levels. products except for articles of iron and steel fell which by about 80%sincetables 2013.The below show machinery, plastics and iron and steel. The imports havegrown considerably thefor topall imported shows imports from consist which China mainly of machinery, mechanical appliances, electrical ofbecause growing the economic and relations political two the countries. between table The below Imports from increased substantially China from $0.7billion in2007to $2billion in2016,largely 4.1.2. Imports Product Code Product Code '390410 '540752 '851762 '721070 '851761 ‘TOTAL ‘TOTAL '73 '72 '39 '85 '84 Articles ofironorsteel Articles Poly"vinyl chloride", in primary forms, … forms, Poly"vinyl chloride",inprimary Iron andsteel Woven containing>=85%... fabricsofyarn Plastics and articles thereof Plastics andarticles Machines forthereception,... Electrical machinery andequipment... Electrical machinery Flat productsofiron...width>=600mm, Machinery, mechanicalappliances,… Base stationsofapparatusforthetransmission… Product Description Product Description All Products All Products 1,783.3 1,783.3 207.9 118.3 246.1 469.1 2012 2012 34.9 96.8 58.1 24.4 45.5 7.0 2,613.4 2,613.4 448.7 165.4 172.0 239.6 585.1 2013 2013 47.5 27.3 45.1 77.5 18.1 2,678.2 2,678.2 277.4 190.6 176.2 317.3 114.9 584.9 2014 2014 44.9 42.3 54.0 30.9 2,228.8 2,228.8 135.5 133.4 156.0 334.1 523.2 2015 2015 32.0 41.6 58.9 73.0 15.2 2,007.5 2,007.5 134.0 151.6 316.9 485.9 2016 2016 95.9 37.8 47.3 53.1 76.7 87.0 Table 13:Uzbekistan’s to China Exports (HS-06)(US$Millions) (2012-2016) Table 12:Uzbekistan’s to China Exports (HS-02)(US$Millions) (2012-2016) Product Code Product Code '520514 '390120 '520100 '284410 '271121 ‘TOTAL ‘TOTAL '74 '39 '28 '52 '27 85% cotton...... uncombedfibres,>= Single cottonyarn thereof Copper andarticles Polyethylene ...gravityof>=0,94,…. thereof Plastics andarticles Cotton, neithercardednorcombed Inorganic chemicals;organicorinorganic… Natural uraniumanditscompounds;... Cotton Natural gasingaseousstate Product Description Mineral fuels,mineraloilsandproducts... Product Description All Products All Products 1,091.8 1,091.8 693.2 126.9 126.9 794.7 2012 2012 58.3 52.9 70.0 1.5 - - 1,938.1 1,938.1 543.9 222.7 221.7 686.5 962.7 967.2 2013 2013 63.7 1.9 1.0 - 1,597.9 1,597.9 120.3 331.4 213.8 212.5 525.7 799.3 802.6 2014 2014 2.6 5.2 - 1,267.1 1,267.1 160.5 285.0 264.7 263.7 547.8 372.0 372.3 2015 2015 3.3 1.4 - 1,607.1 1,607.1 118.3 163.3 144.0 154.1 206.3 205.8 348.5 689.8 689.8 2016 2016 78.1 49 REPUBLIC OF UZBEKISTAN 2017 50 REPUBLIC OF UZBEKISTAN 2017 The trade recentis in fall attributedsome to extentthe in the fall price to of Ruble in2014. balance reached its lowest point in2014as imports rose to $3.1billion and fell exports to $0.85billion. most the favorable2010-11 has been for Uzbekistan came as exports to par with imports.trade The last the 10years,Over Uzbekistan has surplus had atrade with Russian the Federation. of period The 4.2.1. Trade overview roughly 16%of Uzbekistan’s GDP. Russia one is still of major the of partners trade Uzbekistan and remittances from Russia amount to better since appointment the of Shavkaat Mirziyoyev as President the in2016.Despite differences, their power project Uzbekistan which was completely against. Relations however have gotten significantly Tensions grewas Russia supporting started Tajikistan and Kyrgyzstan pursuit intheir to build ahydro two the countries between some of because friction increasing independence from Russian influence. Ruble inthe was still zone. Since Uzbekistan then has moved away politically from Russia. There been has Uzbekistan has always relations had good with Russia. From its 1993Uzbekistan independence in1991till 4.2. Wood and articles of fell which by wood more 2014&2016. than 50%between value of imports from Russia significantly. has fallen The greatest been the on has impact imports of of iron fuels,mineral wood, and steel and vegetable oils. in Sincevalue of fall the Ruble the in 2014, the Uzbekistan imports alarge varietyof from goods Russian the Federation. The major imports comprise 4.2.2. Imports UZBEKIST OF REPUBLIC

US$ (Millions) Russia AN Figure Figure Figure 22:Uzbekistan’s Trade with Russia (US$Millions) (2007-2016)

: Uzbekistan's22: Tradewith

Russia Year

(US$Millions) (2007

- 2016)

Table 17:Uzbekistan’s to Russia Exports (HS-06) (US$Millions) (2012-2016) Table 16:Uzbekistan’s to Russia Exports (HS-02)(US$Millions) (2012-2016) Table 15:Uzbekistan’s Imports from Russia (HS-06)(US$Millions) (2012-2016) Table 14:Uzbekistan’s Imports from Russia (HS-02)(US$Millions) (2012-2016) exports of atexports t-shirts HS-06level the over past the 5years. or crocheted fabrics have last inthe 5years. arise other Onthe seen hand, inthe there afall has been and nuts, knitted or crocheted fabrics and plastics. Most of including exports the cotton and knitted two makethese up about 50%of Uzbekistan’s to Russia. export The other major include exports fruits to Russian the Exports Federation have heavily been dependent on cotton and clothing accessories; 3.5.2.3. Exports Product Code Product Code Product Code Product Code '520513 '441011 '711292 '721049 '390120 '151219 '610910 '440710 '520512 '271019 'TOTAL 'TOTAL 'TOTAL 'TOTAL '39 '60 '08 '61 '52 '84 '15 '72 '44 '27 cotton ... ofuncombedfibres,containing>=85% Single cottonyarn, Plastics and articles thereof Plastics andarticles Particle boardofwood,whether ornotagglomerated... Particle Waste andscrapofplatinum,incl.metalclad... Knitted orcrochetedfabrics Flat-rolled productsofiron…width>=600mm... Polyethylene with a specific gravity of >= 0,94, in primary forms Polyethylene with aspecificgravityof>=0,94,inprimary Edible fruit and nuts; peel of citrus fruit ormelons fruit andnuts;peelofcitrus Edible fruit Sunflower-seed orsaffloweroil andtheirfractions,... T-shirts, singletsandothervestsofcotton,knittedorcrocheted T-shirts, Articles ofapparelandclothingaccessories,knittedorcrocheted Articles Coniferous woodsawnorchippedlengthwise,... cotton ... ofuncombedfibres,containing>=85% Single cottonyarn, Product Description Cotton Product Description Medium oilsandpreparations,ofpetroleum... Product Description All products All products All products parts thereof parts Machinery, mechanicalappliances,nuclearreactors,boilers; Animal orvegetablefatsandoilstheir... Iron andsteel Wood and articles ofwood;woodcharcoal Wood andarticles Product Description Mineral fuels,mineraloilsandproductsoftheirdistillation... All products 2,324.7 1,390.8 1,390.8 2,324.7 247.4 154.8 344.6 450.9 218.0 2012 104.1 115.9 182.8 319.5 166.7 209.6 2012 2012 2012 41.5 45.4 20.5 71.9 31.0 87.3 81.6 9.2 - 2,803.9 1,256.9 1,256.9 2,803.9 301.9 162.5 369.6 590.6 407.2 2013 101.3 128.1 188.0 429.2 177.9 379.7 2013 2013 2013 10.3 34.6 66.3 28.9 29.9 23.7 33.5 84.3 75.2 3,113.6 3,113.6 266.5 178.3 407.1 576.4 470.8 2014 112.3 140.7 153.7 869.8 869.8 413.0 202.7 425.4 2014 2014 2014 19.8 27.8 64.7 33.7 28.1 18.8 69.1 75.7 4.0 2,221.2 2,221.2 163.1 129.9 284.2 314.6 453.0 2015 128.8 575.8 575.8 209.7 169.0 395.1 2015 2015 2015 25.7 27.3 44.3 27.0 38.6 83.1 22.8 14.8 91.7 57.9 68.9 1,965.0 1,965.0 124.4 160.1 221.2 264.7 352.4 2016 103.4 160.1 761.0 761.0 165.2 200.3 302.9 2016 2016 2016 30.2 50.2 37.0 34.2 58.8 42.6 38.4 60.9 66.0 69.9 51 REPUBLIC OF UZBEKISTAN 2017 52 REPUBLIC OF UZBEKISTAN 2017 a fluctuatingtrend; imports hit $1.3 causingbillion in2012 trade deficit a of$0.5billion. years Uzbekistan has never surplus had atrade with Kazakhstan.between trade TheKazakhstan has had Trade with Kazakhstan hasforbalance beneficial trade notthe too of been Overthelast Uzbekistan. ten 4.3.1. Trade Overview Organization put been has to also place to expand and trade cooperation two the countries. between more recent Treaty on Strategic Partnership on was signed June 13,2013.Ajoint Intergovernmental of cooperation agreements. Treaty on Eternal Friendship the on 31,1998while was signed October There havetwo been major treaties between Uzbekistan and alongKazakhstan with large a number to separate from trying Uzbekistanbeen to join Kazakhstan. majority.Kazakh to Due better living conditions inKazakhstan residents the Settlement have of Bagys given to Uzbekistan on from lease village Kazakhstan has an ethnic duringBagys Era.The Soviet the countries over border disputes. The Settlement.major The Bagys beingthecase theone of was area population Kazakhstan while has largest the area. Theresome been has tensionthetwo between Uzbekistan and Kazakhstan are two of largest the countries of Asia. Central Uzbekistan has largest the 4.3. UZBEKIST OF REPUBLIC F yearslast ten has neverUzbekistan beneficial too been not has TradeKazakhstan with 3.5.3 one c the beingtwo countriesmajor the border The disputes. over area. largestwhile Kazakhstanpopulation hasthe largest Uzbekistan has countriesCentralthe Asia. of the Uzbekistan largest andare twoof Kazakhstan 3.5.3 $0.5 billion. $0.5 billion. 2012 causing in Kazakhstan $1.3billion hit aimports has fluctuatinghad trend; a of tradedeficit between countries. thetwo andtrade cooperation expand place to to put hasalso Intergovernmental been Organization while themore1998 recent Trea signed October 31, FriendshipEternalnumber agreements. on of was Treaty cooperation on There been have twomajor treatiesbetween Uzbekistan and Kazakhstan alonga with large Bagysresidents have of trying been Settlement village hasan The area wasgiven onlease Uzbekistan fromto Kazakhstan during Era. the Soviet The Bagys igure igure

US$ (Miillions) .1. Trade Overview Trade .1. Kazakhstan 23 . Kazakhstan : Uzbekistan's: Trade with Kazakhstan (US$ Millions) (2007

ethnic

Figure 23:Uzbekistan’s Trade with Kazakhstan (US$Millions) (2007-2016) AN Kazakh majority.betterto DuelivingKazakhstanin conditions the

Kazakhstan

ty onStrategicty 13,2013.A Partnership June wasjointsigned on had a had

- trade trade

Trade Overview to separate tojoin from Uzbekistan to surplus with Kazakhstan.with surplus The trade between

Year for the trade balance of Uzbekistan. Over the Uzbekistan. Over the of tradebalance for the - 2016)

There has been some betweenbeentension There has some ase of the BagysSettlement ofase the

Kazakhstan . 67 .

Table 20:Uzbekistan’s to Kazakhstan Exports (HS-02)(US$Millions) (2012-2016) Table 18:Uzbekistan’s Imports from Kazakhstan (HS-02)(US$Millions) (2012-2016) Table 19:Uzbekistan’s Imports from Kazakhstan (HS-06)(US$Millions) (2012-2016) Kazakhstan.tables The below showthe topto exports 5 Kazakhstan goods at HS-02 and HS-06levels. ofof and Exports Edible fruits exports. the nuts make up about 40%of Uzbekistan’s to total exports include vegetables, fruits, fuels mineral and plastics, of and fruits which, fuels mineral comprise of most Uzbekistan’s to exports Kazakhstan, have not increased significantly to sinceExports 2007. Kazakhstan 4.3.3. Exports levels. milliontables in2016.The below showthe top importedfrom 5 goods Kazakhstan at HS-02 and HS-06 to $88.8million. Imports of fuels mineral and oils have plummeted from $414.5million in2012to $74.6 Imports of motor vehicles have by risen about over 100times last the five years goingfrom $0.9million Uzbekistan’s imports are on mainly cereals, focused iron and steel and products for industries. milling 4.3.2. Imports Product Code Product Code Product Code Product Code '870322 '270900 '260800 '110100 '100199 '271121 'TOTAL 'TOTAL 'TOTAL 'TOTAL '27 '61 '87 '39 '07 '11 '27 '72 '08 '10 Motor carsandothermotorvehicles... Mineral fuels,mineraloilsand… Articles ofapparelandclothingaccessories… Articles crude Petroleum oilsand...bituminousminerals, Vehicles otherthanrailwayortramway… Plastics and articles thereof Plastics andarticles Edible vegetables and certain rootsandtubers Edible vegetablesandcertain Zinc oresandconcentrates ... Products ofthemillingindustry Mineral fuels,mineraloilsand… Wheat ormeslinflour Iron andsteel Edible fruit and nuts; peel of citrus fruit ormelons fruit andnuts;peelofcitrus Edible fruit Product Description Wheat andmeslin(excluding...) Product Description Cereals Product Description Natural gasingaseousstate Product Description All products All products All products All products 1,343.7 1,343.7 309.9 133.0 290.7 414.5 817.2 298.1 185.0 198.6 2012 2012 2012 90.8 13.6 65.0 98.4 98.8 0.0 6.4 0.9 817.2 184.2 2012 1,145.3 1,145.3 262.7 273.1 120.2 359.8 970.1 135.1 277.3 187.5 130.3 265.2 124.4 2013 2013 2013 37.9 20.5 12.8 0.0 1.4 970.1 186.5 2013 1,083.9 1,083.9 1,017.7 120.6 231.7 153.8 204.2 118.1 238.9 192.3 132.6 284.2 167.7 2014 2014 2014 1,017.7 67.5 17.6 12.1 0.0 187.1 2014 3.0 942.3 193.8 206.1 942.3 725.7 100.2 195.3 255.5 129.6 172.8 232.1 2015 2015 2015 23.6 39.7 59.9 18.5 10.3 725.7 254.5 2015 5.1 - 922.5 127.0 201.8 922.5 587.8 130.7 109.1 141.7 227.4 208.6 2016 2016 2016 587.8 108.4 2016 49.5 51.4 54.9 74.6 19.9 88.8 27.8 67.9 53 REPUBLIC OF UZBEKISTAN 2017 54 REPUBLIC OF UZBEKISTAN 2017 Table 21:Uzbekistan’s to Kazakhstan Exports (HS-06)(US$Millions) (2012-2016) stayed low at $0.3million. since, with an 2014being exception. In reached 2015,exports $335million, meanwhile, imports the reachedmillion to $6.3million. highest Exports their point in2010and have on adownward been trend Afghanistan have fluctuatedbetween $167million &$1.1 imports while billion, rangedbetween $0.1 Uzbekistan has always surplus had atrade with Afghanistan. last the 10years, to Over Exports 4.4.1. Trade Overview constructed from been has Termez, also Uzbekistan to Mazar-i-Sharif, Afghanistan. to coordinate with Afghanistan areas inthe of transit, and electricity road construction. Arail road link other’s countries and anumber signed of agreements on and trade economy. Uzbekistan promised also regime was over thrown, relations with Afghanistan improved. Thetwo embassiesreopened each in itsclosed borders with Afghanistan after the fall of Kabul the to Taliban in1996. After theTaliban Uzbekistan as an independent country. Relationships were tense during Uzbekistan Afghan the war; civil Afterthe collapse Soviet the of Union in1991, Afghanistan was one the firstof countries to recognize 4.4. '081070 '080620 '080929 '080610 Afghanistan Afghanistan Overview Uz Trade 3.5.4.1. Uzbekistan toMazar Termez, A hasrail electricity constructed construction. link alsobeen from road road and economy. Uzbekistan alsopromisedcoordinate to Afghanistanwith in reopenedeachin embassies other’s countries signedand a number of agreementson trad 1996. war;civil Uzbekistanc recognize Uzbekistan asan independentwere Relationships country. tense during the Afghan Soviet the collapseAfter of the Afghanistan3.5.4. UZBEKIST OF REPUBLIC Figure 0.1 million to $0.1 million meanwhile, the imports with downwardsince, trend bekistan has always had a trade surplus with Afghanistan. Over the last 10 years, to10 Exports Afghanistan. last Over the with surplus bekistan a has trade always had Fresh persimmons Dried grapes Fresh cherries (excludingsourcherries) Fresh cherries US$ (Millions) Fresh grapes 24 After the Taliban regime was over thrown, relationsAfghanistan improved. with The regime wastwo Afterthrown, Talibanover the : Uzbekistan's: Tradewith Figure 24:Uzbekistan’s Trade with Afghanistan (US$Millions) (2008-2015) have have Afghanistan $6.3 million.

fluctuated between $167 million fluctuated between $167

- AN i - Sharif, Afghanistan. losed its bordersAfghanistan with its afterlosed the stayed lowat

Afghanistan (US$ Millions) 2014 being

Exports Exports Union

- Trade Overview $0.3 million. reached reached in 1991, Afghanistanin the onefirst countries was of to Year an exception an

2012 18.3 10.4 77.0 5.4 their highest point point highest their (2008

& -201 $1.1 2013 51.0 33.7 26.9 . 1.4 5 In reachedexports $335million, 2015, )

billion

2014 16.6 10.1 42.0 84.7 , while imports ranged between rangedbetween while imports fall fall in 2010 and

of Kabul 2015 22.4 14.7 57.6 9.7 the

to areasof transit, have have 2016 27.7 28.7 41.5 51.5 the Taliban been on a on been e and e and

in 70

Table 23:U Table 24:Uzbekistan’s to Afghanistan Exports (HS-02)(US$Millions) (2011-2015) Table 22:Uzbekistan’s Imports from Afghanistan (HS-02)(US$Millions) (2011-2015) Table 25:Uzbekistan’s to Afghanistan Exports (HS-06) (US$Millions) (2011-2015) table below show Uzbekistan’s to Afghanistan exports at HS-02and HS-06level. in 2014to $336million in2015.The figures below be inconsistentmay or not properly categorized. The to AfghanistanExports have significantly fallen overthelast couple of years. They fromfell million $721 4.4.3. Exports a data root the of could which not The traced. importsfrom be Afghanistan the HS-02 at and HS-06level Uzbekistan imports from Afghanistan are almost negligible. There aresome irregularities amongstthe 4.4.2. Imports Product Code re given below. Product Code Product Code Product Code '271121 '130219 '071331 '080620 '110100 '070310 '902830 '200931 '999999 '999999 'TOTAL 'TOTAL 'TOTAL 'TOTAL '08 '07 '13 '99 '41 '11 '07 '99 '72 '90 zbekistan’s Imports from Afghanistan (HS-06)(US$Millions) (2011-2015) Edible fruit and nuts; peel of citrus fruit ormelons fruit andnuts;peelofcitrus Edible fruit Edible vegetables and certain rootsandtubers Edible vegetablesandcertain Lac; gums,resinsandothervegetablesapsextracts Commodities notelsewherespecified Product Description Raw hidesandskins(otherthanfurskins)leather All products Natural gasingaseousstate Vegetable sapsandextracts(excludingliquorice,hopsopium) Products of the milling industry; malt;starches;inulin;wheatgluten Products ofthemillingindustry; Dried, shelledbeansofspecies... Dried grapes Edible vegetables and certain rootsandtubers Edible vegetablesandcertain Wheat ormeslinflour Fresh orchilledonionsandshallots Commodities notelsewherespecified therefor Electricity supplyorproductionmeters, incl.calibratingmeters . juice,unfermented, fruit Single citrus Iron andsteel Commodities notelsewherespecified Commodities notelsewherespecified Product Description Optical, photographic,cinematographic,... Product Description Product Description All products All products All products 732.5 118.0 2011 2011 13.4 16.3 2011 732.5 106.6 2011 6.0 0.2 0.2 16.3 0.2 0.2 6.0 6.2 0.7 ------580.3 540.4 2012 2012 18.6 10.6 2012 580.3 2012 0.1 0.3 0.1 5.8 6.3 10.6 0.1 4.7 0.3 1.1 6.3 0.1 7.7 3.9 - - - - - 581.4 419.1 2013 2013 28.1 20.4 98.0 2013 581.4 103.2 2013 7.7 20.0 0.1 2.3 2.4 21.1 24.8 98.0 0.1 1.6 0.6 2.4 7.7 - - - - 721.9 510.6 2014 2014 41.9 38.8 21.3 98.0 2014 721.9 142.5 2014 0.3 0.2 0.4 21.3 38.8 98.1 0.3 0.2 0.4 6.2 ------336.0 114.1 140.2 2015 2015 23.9 24.4 2015 336.0 114.1 2015 8.8 10.0 0.3 0.3 24.4 25.6 38.8 88.4 0.3 0.3 ------55 REPUBLIC OF UZBEKISTAN 2017 56 REPUBLIC OF UZBEKISTAN 2017 $33.7 million in2016. otherOn the hand, imports of dumpers for off-highwayfrom use rose about $0.8million in2012 to Overpastthedeficit. five years, exports of natural gas and ammonium nitrate significantly.havefallen balanceshowedtrade asurplus was in2007and again then other in2010;the years it ina has been vehicles, iron, steel,and last the ten fuels. mineral Over years machinery only the Uzbekistan’s times make upcarpets most of Uzbekistan’s to Kyrgyzstan. exports While, imports from Kyrgyzstan include Trade with Kyrgyzstan low has been over past the few years. Fertilizers, plastics,and fruits nuts and 4.5.1. Trade Overview gas to Kyrgyzstan has fallen. on Uzbekistan, and was which exploited by Karimov to get gains. political Recently of export the natural Kyrgyzstan has had aheavy on dependence Uzbekistan’s natural gas. This has led to increased dependence Uzbekistan is relatively stronger than Kyrgyzstan in terms of economy the both as well as military. the constant two the countries. between struggle political of Asia’s Central water sources and Uzbekistan water needs for its produce, agricultural there a has been Uzbek-Kyrgyz border. The other major issuethe wateris dispute. Since controlsKyrgyzstan one-third twothe countries on border their disputes, around specifically mountain, asmall Ungar-Tepa, thenear two countries aTreaty signed of Eternal Friendship. There have a been number between of skirmishes Uzbekistan has had troubled relations with Kyrgyzstan due to border and water disputes. In 1997,the 4.5. 'TOTAL Product Code Table use rosefrom about nitrateammonium have fallen 33% oftotal Vehicles;Kyrgyzstan heavily makesUzbekistan’s from it imports dependentup on been have 3.5.5 Figure UZBEKIST OF REPUBLIC 5 goods Kyrgyzstan at imported from HS '27 '90 '84 '72 '87

26 .2. Imports Imports .2. Kyrgyzstan US$ (Millions) 25 : Imports(HS from Uzbekistan's Kyrgyzstan : Uzbekistan's Tradewith

Mineral fuels, Mineral mineral and products oils cinematographic,photographic, Optical, ... … appliances, mechanical Machinery, and steelIron otherthan railwayVehicles tramway or … All products imports from Kyrgyzstan. Over the past five years the exports of natural gasyears and of natural exports the pastfive Kyrgyzstan. Over the from imports

0.8 million in 2012to in million $0.8 AN

Figure 25:Uzbekistan’s Trade with Kyrgyzstan (US$Millions) (2007-2016)

Product Description Kyrgyzstan Kyrgyzstan

sharply. On hand, ofthe other imports dumpersfor off

(US$Millions) (2007 02) (US$Millions) (2012-02)

- 02 and HS

... $33.7 2016.The in tablesmillion below

Trade Overview Year - 2016) - 06 levels.

190.1 2012 11.0 12.5 26.4 86.1

0.1

- 2016)

159.0 2013 17.9 28.9 30.4 5.4 0.2

163.7 2014 15.3 18.1 9.2 0.2 8.5

show the top top showthe 2015 27.6 95.0 5.8 0.1 9.8 8.1

highway highway

125.1 2016 10.7 15.6 42.1 8.8 8.8

Table 28:Uzbekistan’s to Kyrgyzstan Exports (HS-02)(US$Millions) (2012-2016) Table 27:Uzbekistan’s Imports from Kyrgyzstan (HS-06)(US$Millions) (2012-2016) Table 26:Uzbekistan’s Imports from Kyrgyzstan (HS-02)(US$Millions) (2012-2016) the topthe to exported Kyrgyzstan 5goods at HS-02and HS-06levels. value2012. The export of natural gas hasafter fallen theoil price shock of2014. The belowtables show of three products export 2012; the all combined was $15.5million in2016compared to $0.15million in fruits andthe export in carpets, Thereof rise a nuts,been has andknitted and crocheted fabrics since Even of thoughexports have the fertilizers it most the product fallen, is exported still to Kyrgyzstan. gas. Though, overpastthe fiveyears, exports of fertilizers havefromfallen million $19.2 million. to$11.7 Most of Uzbekistan’s to Kyrgyzstan exports comprise and plastics, of fruits natural carpets, fertilizers, 4.5.3. Exports HS-02 and HS-06levels. in 2012 to $33.7 milliontables in 2016. The below showthe top importedfrom 5 goods Kyrgyzstan at sharply.fallen other Onthe hand, imports of dumpers for off-highwayfrom use rose about $0.8million imports from Kyrgyzstan. past the five Over years the exports of natural gas and ammonium nitrate have Uzbekistan’s imports from Kyrgyzstan have heavily been dependent on Vehicles; it makes up 33% of total 4.5.2. Imports Product Code Product Code Product Code '390410 '270119 '850153 '901420 '870410 'TOTAL 'TOTAL 'TOTAL '08 '27 '60 '90 '57 '84 '39 '72 '31 '87 Edible fruit and nuts; peel of citrus fruit ormelons fruit andnuts;peelofcitrus Edible fruit Poly"vinyl chloride", in primary … Poly"vinyl chloride",inprimary Mineral fuels,mineraloilsandproducts... Knitted orcrochetedfabrics Coal, whetherornotpulverised,… Optical, photographic,cinematographic,... Carpets andothertextilefloorcoverings AC motors,multi-phase,ofanoutput>75kW Machinery, mechanicalappliances,… Plastics and articles thereof Plastics andarticles andappliancesforaero... Instruments Iron andsteel Fertilisers Product Description use Dumpers foroff-highway Product Description Vehicles otherthanrailwayortramway… Product Description All products All products All products 190.1 190.1 2012 2012 2012 11.0 12.5 63.2 26.4 19.2 86.1 0.1 2.2 0.1 0.1 3.9 0.8 - - - - 159.0 159.0 2013 2013 2013 17.9 97.6 28.9 26.1 30.4 9.2 6.7 5.4 0.0 4.3 0.2 0.7 5.0 6.6 - - 163.7 163.7 102.2 2014 2014 2014 15.3 36.0 18.1 8.6 1.5 9.2 1.9 5.9 0.2 1.7 8.5 5.8 1.1 - - 2015 2015 2015 95.0 95.0 59.2 17.1 17.8 27.6 0.2 1.6 5.8 2.7 4.9 0.1 3.4 5.6 9.8 4.2 8.1 - 125.1 125.1 2016 2016 2016 10.7 69.8 15.6 11.7 33.7 42.1 4.3 3.7 8.8 5.1 3.9 8.8 6.2 4.2 7.2 8.3 57 REPUBLIC OF UZBEKISTAN 2017 58 REPUBLIC OF UZBEKISTAN 2017 Table 29:Uzbekistan’s to Kyrgyzstan Exports (HS-06)(US$Millions) (2012-2016) Product Code '271121 '391620 '310210 '570242 '310230 'TOTAL Natural gasingaseousstate Monofilament withany... Urea, whetherornotin... Carpets andotherfloorcoverings,... Ammonium nitrate,whetherornotin... Product Description All products 2012 14.4 63.2 18.1 1.5 0.8 0.0 2013 16.8 97.6 21.8 1.8 3.4 0.6 102.2 2014 10.3 24.5 3.5 2.4 1.7 2015 59.2 3.9 2.2 7.3 3.2 9.7 2016 69.8 3.1 4.2 4.7 5.5 6.5 HS-06 levels. ofexcise tax more than 50%on cars.tables The below showthe classification of imports atHS-02 and havewhich increased significantly, however import of vehicles did not as rise much due the high to Imports from India mainly comprise of pharmaceutical products, machinery, vehicles and garments 4.6.2. Imports at $46.5million and imports were valued at $90.8million, resulting deficit inatrade of $44.3million. have trend have had acyclical as these ranged $13&$35million. In between were 2016,exports valued showed an increasing trend from 2007and reached highest their point of $168million in2014.Exports balancewithtradeThe negativebeen India has for over 10 years,with an exception of 2008. Imports 4.6.1. Trade Overview relations. investedhas also of sector Uzbekistan energy inthe with objective the to increase and trade economic There a noticeablebeen has opportunity for mining in rich inminerals.Uzbekistan, as it India is very each other of $10million each,for atermof 10years. tools and consumer Since goods. 1993,Uzbekistan and India are inan agreement to give credit lines to twothe countries have paper, drugs, inmedicinal increased trade machinery, wood, garments, surgical economy,the agriculture, science, technology, politics and culture. Since signing the of agreement, this Trade and Economic Cooperation in1993.This cooperation agreement covers many areaswhich include Relations Uzbekistan between and India have strengthened over years the through an agreement on 4.6. 3.5.6.1. Trade Overview The trade balance Trade 3.5.6.1. Relations 3.5.6. India UZBEKIST OF REPUBLIC Figure 2014. Exports havea as cyclical2014. Exports hadtrend Imports showed on Trade and Cooperation Economic 1993. in cooperationThis agreement a trade of$44. deficit were2016, exports valued at$46.5 economic India rich veryminerals. in Uzbekistan, asis it foropportunity in mining There noticeable a been has years. Indiaare an in agreement consumergoods.garments,wood, machinery,surgical Since and tools signing of this agreement signing this of which Product Code ‘TOTAL '84 '30

US$ (Millions) India 26 has

include agriculture, theeconomy, scienc : Uzbekistan's Tradewith also invested in the energy sector of Uzbekistan of theenergy sector in also invested relations. betweenIndia Uzbekistan and years strengthenedhave over through the

Machinery, mechanicalappliances, …. Pharmaceutical products Pharmaceutical Product Description All Products

an increasing trend with India

3 million. AN Figure 26:Uzbekistan’s Trade with India (US$Millions) (2007-2016)

to giveto crediteach linesto other of $10million each, for of a 10 term , the two countries the two , India

has been negative for over 10 y overhas negativefor been 10 India

(US$Millions) (2007

million from -

Trade Overview 2007 and andwere imports these have ranged have these - have have 2016) e, technology,and politics culture. Since Year

reached their

increased 110.2 2012 38.9 7.9

to increase trade and trade toincrease objective withthe valued at

119.8 2013 12.6 48.8 ears, with an exception of 2008. exceptionof 2008. an ears, with trade between $13 between $13 highest point of $168 million in of $168million highestpoint

in medicinal drugs, paper, paper, medicinal drugs, in $90.8 168.3 2014 21.7 47.7

1993, Uzbekistan and

million, resulting in covers & $35 million. In million. $35 107.9 2015 14.7 49.9 an an many areas areas many agreement agreement 2016 90.8 12.5 42.9 the 77

59 REPUBLIC OF UZBEKISTAN 2017 60 REPUBLIC OF UZBEKISTAN 2017 Table 33:Uzbekistan’s to India Exports (HS-06)(US$ Millions) (2012-2016) Table 31:Uzbekistan’s Imports from India (HS-06)(US$Millions) (2012-2016) Table 32:Uzbekistan’s to India Exports (HS-02)(US$Millions) (2012-2016) Table 30:Uzbekistan’s Imports from India (HS-02)(US$Millions) (2012-2016) fromtables 1999.The below showthe classification ofexports atHS-02levels. and HS-06 valuestheir except zinc articles, primarily Uzbekistan because to started import zinc from Kazakhstan makefertilizers up about 80%of to total India. exports showed exports All aconsiderable increase in to IndiaExports consist of vegetables, gums, fertilizers, resins and zinc articles. Edible vegetables and 4.6.3. Exports Product Code Product Code Product Code '310490 '300420 '310210 '300220 '130190 '300450 '310420 '870600 '071331 '300490 ‘TOTAL ‘TOTAL ‘TOTAL '52 '79 '13 '09 '31 '62 '07 '87 potassium ... natural sylviteand othercrude Carnallite, Medicaments containingantibiotics,... Urea, whetherornotinaqueoussolution... Cotton Vaccines forhumanmedicine Zinc and articles thereof Zinc andarticles Lac; naturalgums,resins,gum-resins,... Lac; gums,resinsandother… Medicaments containingprovitamins,... Coffee, tea,matéandspices Fertilizers ... (excluding Potassium chlorideforuseasfertiliser Chassis fittedwithengines,fortractors... Articles ofapparel...notknittedorcrocheted Articles Edible vegetables and certain rootsandtubers Edible vegetablesandcertain Dried, shelledbeansofspecies... Product Description Product Description Medicaments consistingofmixedorunmixed... Product Description Vehicles otherthanrailwayortramway… All Products All Products All Products 110.2 2012 2012 2012 2012 33.6 33.6 22.7 22.3 25.6 6.5 7.0 0.4 3.5 2.4 2.6 2.6 3.3 0.2 7.0 2.6 8.3 7.5 - - 119.8 2013 2013 2013 2013 35.1 35.1 13.4 10.9 10.6 10.4 29.2 17.7 3.4 9.5 0.4 4.2 1.9 5.6 5.6 6.3 0.7 3.9 2.9 - 168.3 2014 2014 2014 2014 10.7 39.1 39.1 14.7 16.2 14.5 14.5 28.3 22.3 6.1 1.1 3.8 4.9 4.9 6.7 1.4 4.1 5.9 - - 107.9 2015 2015 2015 2015 16.1 56.5 56.5 25.5 10.9 10.8 33.1 4.5 5.4 5.6 5.6 2.9 1.2 9.4 3.9 6.2 6.8 - - - 2016 2016 2016 2016 46.5 46.5 90.8 14.4 10.3 18.1 18.0 24.6 12.5 2.3 3.8 4.1 1.4 5.0 1.9 5.2 5.3 5.4 2.3 8.0 2.9 as imports almost matched exports. route from Pakistan to Uzbekistan is through Afghanistan. In deficit trade 2016,the was $0.15million The huge dropcame inexports largely because political instabilityof in Afghanistan,trade the since showexports unpredictability have as these ranged from $25million to $0.5million last inthe ten years. Trade erratic. with Pakistan Although imports very has from been Pakistan have stayed fairly constant, 4.7.1. Trade Overview fieldthe of agriculture in Pakistan. have an signed agreement to establish Pak-Uzbek Trade House aimed at introducing in technology new its reach markets. to global the Recently KASB the Group of Pakistan and Uzbek Corporation Export remove problems intrade. Uzbekistan to Gwadar made an use has also inquiry (Pakistani Port) to expand Uzbekistan has proposed aPakistan-Afghanistan-Uzbekistan trilateral transit agreement trade to help cooperation Foreign their between Affairs Ministries. foreign affairs. The two countries signedhave also protocols to avoid double taxation and to increase and Uzbekistan three documents signed to strengthen cooperation fields inthe trade,economyof and andscience technology, tourism, banking,telecommunications and transit. In November 2015,Pakistan relations. These agreements covereconomic trade, healthcare, agriculture,educational fields,military, Thetwo countries have signed about 56 bilateral agreements and MOU’s since 1991, to expand good agreements with each other. Afghanistan. Pakistan and Uzbekistan enjoy pleasant and and ties political have friendly bilateral signed 1992. The relationsbecame strongertheboth countrieswhen worked together to counter terrorism in Relations Uzbekistan between and Pakistan were established Uzbekistan when independent became in 4.7. UZBEKIST OF REPUBLIC Table fibers, mostly were fromPakistan that Uzbekistan commodities imported The main 2016. has yearsUzbekistan’s fluctuatedimports 2007 and between 2016,however, the the overall Tradeover andfavorable Pakistanbeen has between aof somewhat Uzbekistan time. period Imports 3.5.7.2. Figure almost negligible. below The show the tables textile and agriculturalThe products. trend howeverthat explains the imports fromPakistan were 'TOTAL Product Code

been an an been 34 Pakistan 27 : Imports fromUzbekistan's '30 '53 '90 '63 '82 pharmaceutical products, photography cinematographypharmaceutical products, and

: Uzbekistan's: Trade

US$ (Millions)

inc

rease in the rease country’s fromimports; $2.73 million in 2007 to $3.38 million in

Optical, photographic, cinematographic photographic, Optical, ... madeOther implements,Tools, cutlery, … products Pharmaceutical vegetable Other fibres; textile … All products AN Figure 27:Uzbekistan’s Trade with Pakistan (US$Millions) (2007-2016) with Pakistan (US$ Millions) (2007

- up Pakistan Pakistan textile articles… Product Description

(HS

02) (US$Millions)-02) (2012

- Trade Overview goods im

-2016) Year ported at HS

-2016) 2012

2012 0.3 3.5 4.0 - - -

- equipment 02 and HS 02 and 2013

2013 0.7 2.1 3.5 - - -

2014 2014 0.6 1.4 2.3 - - -

and ot 06 levels.

vegetable textile textile vegetable

2015 2015 0.5 0.3 0.4 0.7 2.0 her various her various -

impact 2016 0.1 0.2 0.3 0.6 2.0 3.4 2016

61 REPUBLIC OF UZBEKISTAN 2017 62 REPUBLIC OF UZBEKISTAN 2017 Table 35:Uzbekistan’s Imports from Pakistan (HS-06)(US$Millions) (2012-2016) Table 36:Uzbekistan’s to Pakistan Exports (HS-02)(US$Millions) (2012-2016) Table 34:Uzbekistan’s Imports from Pakistan (HS-02)(US$Millions) (2012-2016) tables below show at exported goods HS-02and HS-06levels. and vegetables. The export of cottonfrom increased to $1.3million in2016 $0.6million in2015. The in 2016.The main commodities exported by Uzbekistan were cotton, saltsplastics, earthly stonesand to PakistanExports have significantly decreased from since 2007, $24.7million in2007 to $3.22million 4.7.3. Exports The tablesThe below show importedthe goods at HS-02 and HS-06levels. products.agricultural trend The however explainsthat the imports from Pakistan werealmost negligible. pharmaceutical products, photography and cinematography equipment and other various and textile The main commoditiesthat Uzbekistan importedfrom Pakistan were mostly vegetable fibers, textile country’sthe imports; from $2.73million in2007to $3.38million in2016. imports fluctuatedthe between years 2007 and 2016, however,the impactoverall been an increasehas in Trade Uzbekistan between and Pakistan has somewhat favorable been overof time. Uzbekistan’s aperiod 4.7.2. Imports Product Code Product Code Product Code 630510 821220 300490 531090 531010 'TOTAL 'TOTAL 'TOTAL '84 '90 '07 '63 '25 '82 '39 '30 '52 '53 Sacks andbags,forthepackingofgoods... Safety razorbladesofbasemetal… Machinery, mechanical app... parts thereof... Machinery, mechanicalapp...parts Optical, photographic,cinematographic... Medicaments consistingofmixedorunmixed. Edible vegetables and certain roots andtubers Edible vegetablesandcertain Other made-uptextilearticles… . Woven fabricsofjuteorothertextile ...Bleached Salt; sulphur; earths andstone;… earths Salt; sulphur; Tools, implements,cutlery, … Product Description unbleached Woven fabricsofjuteorothertextile … Plastics and articles thereof Plastics andarticles Pharmaceutical products Pharmaceutical Cotton Product Description Other vegetabletextilefibres;… Product Description All products All products All products 2012 2012 2012 0.3 0.8 0.1 0.4 0.0 0.7 3.5 4.0 4.0 ------2013 2013 2013 0.7 0.9 0.3 0.7 2.1 3.5 0.3 3.5 ------2014 2014 2014 0.6 0.6 0.2 0.7 1.4 2.3 2.3 ------2015 2015 2015 0.1 0.5 0.3 0.4 0.3 0.3 1.1 0.4 2.0 0.6 0.7 2.0 ------2016 2016 2016 0.0 0.3 0.1 0.1 0.5 0.4 0.2 0.9 0.4 0.3 1.1 0.9 3.2 0.6 3.4 1.3 2.0 3.4 Table 37:Uzbekistan’s to Pakistan Exports (HS-06)(US$Millions) (2012-2016) Table 38:Pakistan’s Potential Imports from Uzbekistan could be worthcould as much be as $6,980 million. table, Pakistan only imports $3.2 million worth of products from Uzbekistan potential the while imports Uzbekistan’s to world the Exports and Pakistan’s potential imports from Uzbekistan. According to the tableThe below shows Pakistan’scurrent importsfrom Uzbekistan, Pakistan’s Importsfrom the world, world for that product. Uzbekistan from minimum the of Pakistan’s imports from world the and Uzbekistan’s to the exports Import potential for a product is by calculated subtracting Pakistan’s imports actual for a product from 3.5.7.4.1. Importpotential them. between frictionless is perfectly bilateral trade. It to measure seeks additional the that trade can two the exist countries between iftrade Trade potential is an economic concept that and allows for us scope to scale the identify increasing 3.5.7.4. Potential forPakistan-Uzbekistan Trade Product Code Product Code 390120 520100 740311 390210 710812 741110 854449 870322 80610 70200 '847432 '071339 '250300 '390120 '520100 'TOTAL All Products Product Description in primary forms in primary Polyethylene withaspecificgravityof>=0,94, Cotton, neithercardednorcombed sections ofcathodes Copper, ofcathodesand refined,intheform Fresh grapes Polypropylene, in primary forms Polypropylene, inprimary Tomatoes, freshorchilled for non-monetary purposes(excludinggold. for non-monetary Gold, incl.goldplatedwithplatinum, unwrought, Tubes andpipes ofrefinedcopper insulated, notfittedwithconnectors, n.e.s. Electric conductors,foravoltage<=1.000V, ofpersons,incl.. designed forthetransport Motor carsandothermotorvehiclesprincipally Uzbekistan of X Uzbekistan’s to exports the world of X)–Pakistan’s current imports from =Min Potential (Pakistan’sImport imports from the world of X, bitumen Machines formixingmineralsubstanceswith Dried, shelledbeans. Sulphur ofallkinds(excluding...) Polyethylene ...gravityof>=0,94,… Cotton, neithercardednorcombed Product Description All products Imports from Imports Uzbekistan 3.2 0.9 1.3 2012 ------0.1 0.4 0.7 - - - imports from imports 2013 Pakistan's 46,998.3 0.3 0.7 0.3 - - - 266.4 580.5 384.9 120.8 326.0 world 85.1 73.4 18.4 20.0 72.7 2014 0.2 0.7 - - - - Uzbekistan's exports to exports 6,983.6 2,861.3 317.9 199.4 253.4 world 69.7 40.9 28.0 20.5 22.9 27.0 2015 1.1 0.3 - - - - Imports from Imports Uzbekistan Potential 6,980.3 265.5 198.0 85.1 69.7 40.9 28.0 18.4 20.0 22.9 27.0 2016 0.1 0.4 0.4 0.9 3.2 1.3 63 REPUBLIC OF UZBEKISTAN 2017 64 REPUBLIC OF UZBEKISTAN 2017 Table 39:Pakistan’s Potential to Uzbekistan Exports railroad inMazar-i-Sharif, Afghanistan. Once China-Pakistan Economic (CPEC) Corridor has been about building arail road from link Pakistan through Afghanistan that connects to Uzbek the controlled are working to counter terrorism inAfghanistan for astable and safer region. There havetalks been issuesseveral during transit of In goods. order to increase bilateral Pakistan both trade and Uzbekistan conditions in Afghanistan. The routethrough Afghanistan is neithersafe nor reliableposes which Trade Pakistan between and Uzbekistan has slowed down significantly due the unstableto political fromgoes Kandahar to Kabul to Mazar-i-Sharif before entering into Uzbekistan at Termez. Pakistan connects Karachi to to Quetta Chaman before entering into Afghanistan; inAfghanistan, it Uzbekistan Regional the Cooperation is for via Development Hwy/N-25 and AH1.The routefrom Uzbekistan between trade and Pakistan throughgoes Afghanistan. The closest route to fromPakistan Uzbekistan.especially potential high There between for is trade very Pakistan and Uzbekistan. The Pakistan is strategically located. It provides for port closest the sea most of Asian Central the Republics, 4.7.5. Trade RoutetoPakistan $9.1 billion. $3.4million worth ofexports products to Uzbekistan potential the worth could about be while exports imports from world the and most importantly Pakistan’s potential to Uzbekistan. exports Pakistan only tableThe below showsthe Pakistan’s to exports Uzbekistan, Pakistan’s the to exports world, Uzbekistan’s product that for Uzbekistan from minimum the of Pakistan’s to world the exports or Uzbekistan’s imports from world the potential The export for a product calculated is by subtracting Pakistan’s exports for actual a product to 4.7.4.2. ExportPotential Product Code 210690 300420 870190 901890 730890 721049 151620 390760 300490 110100 Product Description All Products Food preparations,n.e.s. . transdermal of in measureddoses"incl.thosetheform Medicaments containingantibiotics,putup Tractors (excludingthoseofheading8709,. . sciences,n.e.s or veterinary andappliancesusedinmedical,surgical Instruments n.e.s. (excluding. ofironorsteel, ofstructures, and parts Structures Flat-rolled productsofironornon-alloysteel… Vegetable fatsandoilstheirfractions, forms Polyethylene terephthalate,inprimary products … Medicaments consistingofmixedorunmixed Wheat ormeslinflour the X the imports from the world of X)–Pakistan’s current to exports Uzbekistan of Potential Export

= Min (Pakistan’s to exports the world of X, Uzbekistan’s Uzbekistan Exports to Exports 3.4 0.1 0.5 ------Pakistan's exports to exports 20,533.8 world 135.8 172.8 326.0 19.2 14.3 15.6 24.5 27.4 53.0 73.3 imports from imports Uzbekistan's 9,140.9 world 127.6 353.4 43.1 13.4 35.7 24.9 18.8 64.3 97.8 39.5 Uzbekistan Exports to Exports Potential 9,137.5 127.6 43.1 13.4 14.3 15.6 18.7 24.5 27.4 39.5 72.8 including Russia. completed, as aroute used it be could also for with Uzbekistan trade and other Asian Central economies Sufficient trade data could benot found for Uzbekistan’s trade with Turkmenistan. In 2010,bilateral with Turkmenistan trade amounted to $200million and reached $460million in2011. and petrochemicals. signed. The agreements are aimed at improving relationsthe in areas of agriculture, commerce, tourism President of Uzbekistan, Shavkat Mirziyoyey, anumber of agreements on strategic partnership were have joined Ashgabat the also Agreement. In arecent visit to Turkmenistan by elected newly the that would connect Uzbekistan to Oman through Turkmenistan and Iran. Kazakhstan and Pakistan The Ashgabat Agreement in was signed April 2011 for an internationaltransit transportand corridor of Turkmenistan, was appointed co-chairman the of Uzbek-Turkmen Joint Commission. communication with sector regular meetings. In 2017,Bayram Annameredov, deputy the prime minister Turkmen Joint commission formed been to has insure also cooperation energy, inthe transport and to Recently survive. two the countries have working been on strengthening The ties. their Uzbek- foreign of Turkmenistan policy is such that it has always only kept relations with countries it has needed Turkmenistan is arelatively isolated state. Though its isolation is by choice ratherthan necessity. The was sent back. time. Uzbekistan was blamed for assassination the attempt and Uzbek the ambassador in Turkmenistan In November 2002,there was an assassination attempt on Niyazov, President the of Turkmenistan at the countries, has this caused alanguage issue for minorities the leading to unemployment and dissatisfaction. large population of Uzbeks ethnic inTurkmenistan. Since schooling is dominant inthe language inboth diversity.lies within ethnic There arelarge a number of ethnic Turkmens in Uzbekistan and equally an Uzbekistan and Turkmenistan have had troubled relations past. inthe One of deep-rooted the issues 4.8. Turkmenistan Figure 28:Trade Route to Pakistan 65 REPUBLIC OF UZBEKISTAN 2017 66 REPUBLIC OF UZBEKISTAN 2017 We are unable to comment two the countries on between trade the due to lack of data. for Uzbekistan. for irrigation. Cotton amajor being for export Uzbekistan, lack of water supply would mean huge losses would cause disturbance water inthe along Sea, flowwith the creating harm Aral further and problems river to that Amu the is which atributary through runs Uzbekistan, Darya Uzbeks the feared that this 2015 after approvalfrom the WorldBankDam in2014. the Rogun Since required waterfrom the Vaksh criticisms and issues highlighted by Uzbekistan, construction of Dam Rogun finallycommenced the in completelyhas been against project the it because would hinder flow the of AmuDarya. Even after the from Erabut Soviet the due to unrest and unstable conditions political it was never started. Uzbekistan to Uzbekistan gives which Tajikistan control over Uzbekistan’s water supply. Dam Rogun was aproject Another major issue two the countries between is water the dispute. The flows AmufromDarya Tajikistan an unhealthy relationship two the regions. between border government the and accused of Tajikistan of inability to control militant activity. This resulted in government of Uzbekistan unilaterally planted land mines indisputed areas along Uzbek-Tajik the Islamicthe Movement of Uzbekistan (IMU)crossed into through country the Tajikistan in2000,the of UnionSoviet the in 1991 gave to birth a number of terrorist groups across all Asia. Central When twothe countries boils down to three major issues: border disputes, terrorism and energy. The fall Uzbekistan has had troubled relations with Tajikistan since independence. their The tensionbetween 4.9. Tajikistan Khiva, Uzbekistan SECTION V Doing Business

with ten the indicators to measure used it for years the 2016and 2017. businessthe environment of other countries.table The below showsDoingthe RankingsalongBusiness changes may either due be to changes business inthe environment for Uzbekistan or even by changes in Uzbekistan ranks 87 and abusiness running for by alocal each country. study on ten based indicators. rankingsthese Theof is theto determine purpose relative ease of starting DoingThe Business Index is measured and recorded the by WorldBank Group. It is acomprehensive 5.1. Easeof Table 40:Doing Business in Uzbekistan where it ranks 165 starting abusiness its overall rating fell due to criteria such as trading across borders and paying taxes Resolving Insolvency Enforcing Contracts Trading acrossBorders Paying Taxes Protecting Minority Investors Getting Credit Registering Property Getting Electricity Permits Dealing withConstruction aBusiness Starting Topics Overall th th and 138 in world as of of 2017 in ease doing business. Although, Uzbekistan in ranks 25th Doing Business th respectively. Changes rankings may in these a bit be ambiguous since DB 2017Rank 165 138 147 77 38 70 44 75 83 25 87 DB 2016Rank 166 139 147 72 37 78 42 81 78 23 82 Change inRank -5 -1 -2 -5 -2 -5 1 1 8 6 - 69 REPUBLIC OF UZBEKISTAN 2017 70 REPUBLIC OF UZBEKISTAN 2017 Head of Mission: MrHussain Riaz Bukhari, Ambassador Email: [email protected] and [email protected] Telephone: (+998)(71)2280525 Address: No. 15,Kichik Halqa Yoli Street, Olmzor Tashkent, District, Uzbekistan Pakistani EmbassyinTashkent, Uzbekistan Head of Mission: Furqat Sidiqov, Ambassador Website: www.uzbekembassypakistan.org Email: [email protected] Fax: (+92)51226-17-39 Telephone: (+92)51226-47-46 Address: Street No F-8/3, 2,Sector Kohistan Islamabad, Road, Pakistan Uzbek EmbassyinIslamabad,Pakistan 5.2. Embassies and Consulates Section 5-https://commons.wikimedia.org/wiki/File:Itchan_Kala_Khiva_2012.jpgSection (6238617046).jpg 4-https://commons.wikimedia.org/wiki/File:Samarkand,_Bibi-Khanym_Mosque_Section Uzbekistan.jpg 3-https://commons.wikimedia.org/wiki/File:Main_entrance_of_Museum_of_History_of_Section 2-https://commons.wikimedia.org/wiki/File:Registan_square_Samarkand.jpgSection 1 - https://c1.staticflickr.com/4/3835/14580269791_4a5601a3ea_b.jpgSection Section Breaks Figure 7-https://commons.wikimedia.org/wiki/File:Shah-i-Zinda,_Samarkand_(4934657268).jpg portal_8_(detail)_and_south_side_4.JPG Figure 6-https://commons.wikimedia.org/wiki/File:Samarkand_Bibi-Khanum_Mosque_-_Entrance_ 1%B1_fly_over_Tian_Shan_mountains_(4117410958).jpg Figure 5-https://commons.wikimedia.org/wiki/File:%E9%A3%9E%E8%B6%8A%E5%A4%A9%E5%B (6238617046).jpg Figure 4-https://commons.wikimedia.org/wiki/File:Samarkand,_Bibi-Khanym_Mosque_ entrance_detail_1.JPG Figure 3-https://commons.wikimedia.org/wiki/File:Bukhara_Mir-i-Arab_madrasa_outside_ Figure 2-https://commons.wikimedia.org/wiki/File:Itchan_Kala_Khiva_2012.jpg Figure 1-https://commons.wikimedia.org/wiki/File:Oliy_Majlis_parliament_of_Uzbekistan.JPG Cover Page VII. VI. V. IV. III. II. I. Data Sources: 5.3 Sources IMF; World Economic Outlook World Trade Organization (WTO) CIA Fact Book World Integrated Trade Solution World (WITS); Bank TradeITS Map Doing Business; http://www.doingbusiness.org/ World Data; http://data.worldbank.org/ Open Bank 71 REPUBLIC OF UZBEKISTAN 2017 72 REPUBLIC OF UZBEKISTAN 2017 fly_over_Tian_Shan_mountains_(4117410958).jpg -10 https://commons.wikimedia.org/wiki/File:%E9%A3%9E%E8%B6%8A%E5%A4%A9%E5%B1%B1_ https://commons.wikimedia.org/wiki/File:Ak_Serai_Palace,_Shakhrisabz_(490496).jpg -9 https://commons.wikimedia.org/wiki/File:Shakhrisabz,_Uzbekistan,_21.05.2014.jpg -8 https://commons.wikimedia.org/wiki/File:Itchan_Kala_Khiva_2012.jpg -7 https://commons.wikimedia.org/wiki/File:Samarkand,_Shah-i-Zinda_(6238891272).jpg -6 https://commons.wikimedia.org/wiki/File:Registan_square_Samarkand.jpg -5 https://commons.wikimedia.org/wiki/File:Samarkand,_Bibi-Khanym_Mosque_(6238617046).jpg -4 Ouzb%C3%A9kistan)_(5675552866).jpg -3 https://commons.wikimedia.org/wiki/File:La_m%C3%A9dersa_Tchor_Minor_(Boukhara,_ Ouzb%C3%A9kistan)_(5658826884).jpg -2 https://commons.wikimedia.org/wiki/File:Le_minaret_et_la_mosqu%C3%A9e_Kalon_(Boukhara,_ https://commons.wikimedia.org/wiki/File:Ark_Citadel.jpg -1 Tourism

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