From 3 to 6 May 2026, Samarkand will host the 59th Annual Meeting of the Asian Development Bank (ADB). The event is expected to bring together heads of banking and financial institutions from 69 member countries, as well as representatives of international organizations. Discussions will focus on the key development challenges facing the countries of Asia and possible ways to address them.

The holding of such a high-level forum in Uzbekistan reflects the growing recognition of the country’s ongoing economic reforms and the strengthening of its position within the global financial system. A significant factor has also been the notable expansion of cooperation between Uzbekistan and the ADB in recent years, as evidenced by a number of objective international assessments of the country’s socio-economic development.

First, there has been a steady rise in Uzbekistan’s international standing and stronger performance in global rankings. In particular, in the Government Technology Maturity Index published by the World Bank, the country advanced by 71 positions, entering the world’s top ten.

Second, despite continuing disruptions in global production and transport-logistics chains, rising commodity prices, and tighter financial conditions, Uzbekistan continues to demonstrate устойчивый economic growth. In 2025, for the first time in the country’s history, gross domestic product exceeded USD 145 billion, while gold and foreign exchange reserves surpassed USD 60 billion.

At the same time, the volume of attracted foreign investment increased significantly, reaching USD 43.1 billion, while the share of investment in GDP exceeded 31 percent. Moreover, despite growing protectionism and sanctions pressure in the global trading system, the republic increased exports by 23 percent, bringing them to USD 33.4 billion.

Third, cooperation between Uzbekistan and the ADB is comprehensive and long-term in nature. The total portfolio of joint initiatives amounts to 174 projects worth USD 27.5 billion, of which 66 projects worth USD 10.5 billion have already been completed, while another 30 projects valued at USD 4.6 billion are currently under implementation. These figures confirm the ADB’s status as one of Uzbekistan’s leading development partners.

Building on accumulated experience, the ADB launched a new five-year partnership strategy with Uzbekistan in August 2024 for the period 2024–2028. Its key priorities include supporting the republic’s transition toward a green and inclusive economy, enhancing private sector competitiveness, and stimulating investment in human capital.

In addition, Uzbekistan and the ADB approved a Memorandum of Understanding for 2026–2028, which envisages the implementation of 28 projects with a total value of USD 4.2 billion.

The fact that the meeting is being held in Uzbekistan positions the country as a regional hub for dialogue on development and investment, demonstrates the progress of reforms, and contributes to attracting global partners to accelerate the country’s sustainable development. According to experts, the meeting will serve as an important platform for strengthening cooperation and concluding priority agreements between the Government of Uzbekistan and the ADB.

Furthermore, in order to consolidate long-term priorities, President of Uzbekistan Shavkat Mirziyoyev put forward an initiative to mark the Samarkand summit with the signing of an important document — the Expanded Strategic Partnership Programme with the ADB for 2027–2030. It will serve as a medium-term roadmap, with primary emphasis placed on human capital and social resilience.

Thus, cooperation between Uzbekistan and the ADB has evolved from financial assistance into a strategic partnership. Today, the Bank finances key projects, shapes the reform agenda, and supports the long-term transformation of the national economy, effectively acting as an institutional partner.

Such cooperation opens a number of significant advantages for Uzbekistan:

Economic – access to concessional loans and grants, reduced budgetary burden in implementing large-scale programmes, improvement of the investment climate and inflow of long-term foreign investment, infrastructure development, and employment growth;

Structural – acceleration of market reforms, liberalization and diversification of the economy, and private sector development;

Strategic – integration into the global economy, transition to a green growth model, and participation in regional value chains and transport-logistics corridors.

As can be seen, the modern ADB agenda largely coincides with Uzbekistan’s current reform trajectory. According to experts, the republic has synchronized its national strategy with the Bank’s priorities and, as a result, can attract even greater volumes of financing to accelerate structural reforms and strengthen economic resilience.

Overall, the key features of the modern model of cooperation between Uzbekistan and the ADB are: comprehensiveness (covering all major sectors), strategic orientation (alignment with the long-term goals of “Uzbekistan–2030”), institutional depth (reforms, regulation, standards), and sustainability (environmental protection and inclusiveness).

Thus, today the ADB is not merely a creditor, but a key strategic partner participating in structural reforms, economic modernization, and Uzbekistan’s integration into global economic processes.

Dmitriy Trostyanskiy

Chief Research Fellow,

Institute for Strategic and Regional Studies

under the President of the Republic of Uzbekistan,

Doctor of Economic Sciences

Expanding Uzbekistan’s exports and developing industrial cooperation require reliable logistics, access to capital, and stable and predictable conditions in foreign markets. These objectives occupy an important place on the economic agenda of the Conference on Interaction and Confidence Building Measures in Asia (CICA), which brings together 28 member states. The Seventh CICA Summit is scheduled to take place in Baku on 15 October 2026. It will be held during Azerbaijan’s chairmanship, whose priorities include connectivity, digitalization, and sustainable growth.

CICA members include some of Uzbekistan’s key trading partners. In the first half of 2026, China, Russia, Kazakhstan, Türkiye, and Afghanistan together accounted for approximately 53 percent of the country’s total foreign trade turnover. The multilateral platform complements established bilateral relations in areas where the organization of transportation or implementation of investment initiatives requires coordinated participation by several countries.

Cooperation with CIS countries occupies an important place in Uzbekistan’s foreign economic relations. Uzbekistan’s trade turnover with the Commonwealth countries increased from USD 11.8 billion in 2020 to USD 28.1 billion in 2025. In January–July of this year, trade turnover reached USD 18.3 billion, representing a growth rate of 122.7 percent. As of the beginning of August, approximately 5,800 enterprises with capital participation from Russia, Kazakhstan, Azerbaijan, and Tajikistan were operating in Uzbekistan.

Access to different markets requires a network of complementary transport corridors that makes it possible to select delivery routes based on their cost and transit time. At the CICA Summit in Astana in 2022, President Shavkat Mirziyoyev identified the development of production and logistics links between Central Asia and South and East Asia, as well as the Middle East, among the key economic priorities. The knowledge economy and modern technologies were also highlighted as priority areas.

Practical aspects of this agenda were discussed in June 2026 at the Second Termez Dialogue on Connectivity between Central and South Asia. Held with the participation of the CICA Secretariat, the event brought together representatives of 17 CICA member states. Discussions on multimodal routes and digital logistics were accompanied by a visit to the infrastructure of the Termez Cargo Terminal and the Ayritom International Trade Center, which facilitate freight transportation and trade between the regions.

Links with ports in the Caspian region complement the overland transport network by providing access to maritime routes. The conference of heads of ports of CICA member states, held in Baku in September, focused on coordinating maritime, rail, and road transportation, cargo handling, and cooperation among operators.

The transport agenda is closely linked to ongoing work within the CIS aimed at harmonizing technical requirements, ensuring mutual recognition of conformity assessment results, and eliminating non-tariff barriers. Electronic document management helps reduce the time required for cargo clearance and control procedures.

Direct ties between regions and businesses facilitate the identification of partners and platforms for joint projects involving technology transfer, industrial automation, and the development of new materials. Strengthening such ties was a key focus of the First CIS Forum of Regions held in Tashkent in 2025. The CICA Business Council provides additional opportunities for business engagement by promoting cooperation among business associations of CICA member states.

At the CIS Innovative Industry Forum held in Tashkent in April 2026, participants discussed the application of artificial intelligence and cooperation between science and industry.

For small and medium-sized enterprises, participation in such value chains creates opportunities to manufacture components and provide specialized services to large industrial enterprises.

The preparation of joint projects also requires coordination of financing sources. The CICA Financial Summit serves as an additional platform for engagement with relevant national institutions. Its first meeting was held in Astana on 8 September 2026. Its consultative agenda covers development finance, investment cooperation, and digital solutions. For Uzbekistan, this provides an opportunity to present initiatives in logistics, energy, and industry to potential investors and discuss the terms and conditions for their implementation.

Participation in multilateral formats enables Uzbekistan to build on established partnerships when entering new markets and preparing joint projects. The economic impact of such cooperation is reflected in the establishment of new production facilities, long-term export contracts, and an increase in the value added generated in Uzbekistan.

On October 8–9^th, President Shavkat Mirziyoyev will attend the 8^th Consultative Meeting of the Heads of State of Central Asia and Azerbaijan, as well as a meeting of the CIS Council of Heads of State.

The consultative meetings stem from an initiative put forward by the President of Uzbekistan in 2017. The first meeting took place in Astana in March 2018. This framework allows countries to work together on transit, infrastructure use, border procedures and industrial cooperation where the involvement of several countries is required.

At the seventh meeting, held in Tashkent on November 16, 2025, participants agreed to Azerbaijan’s full participation. This creates opportunities to coordinate industrial development in Central Asia with transport infrastructure in the South Caucasus and routes to markets in Türkiye and Europe.

For businesses, transport arrangements need to be coordinated along the entire route. Faster customs clearance in one country will have limited benefits if cargo is held up at the next border or port. Joint ventures also need coordinated arrangements for raw material supplies, certification and financing. Expanding the group of participants therefore makes multilateral coordination more useful in practice.

Expanding Trade and the Regional Market

According to the Center for Economic Research and Reforms (CERR), Uzbekistan’s trade with Central Asian countries grew 3.1-fold between 2017 and 2025, reaching $8.3 billion. In 2025, trade with Kazakhstan totaled $5 billion, with Kyrgyzstan and Turkmenistan $1.2 billion each, and with Tajikistan $912.3 million.

In January–August 2026, trade with the four neighboring countries reached $6.14 billion, up 26.2% from the same period a year earlier. Uzbekistan’s exports rose 37.5% to $2.36 billion, while imports increased 20.1% to $3.78 billion. Trade grew with every partner: Kazakhstan by 23.4%, Kyrgyzstan by 51.2%, Tajikistan by 45.7% and Turkmenistan by 5.7%.

Trade with Azerbaijan grew 9.5-fold between 2017 and 2025, reaching $307.3 million. In 2025, Uzbekistan’s exports totaled $227.3 million and imports $80 million. Established trade in machinery, textiles, food and metals provides a basis for greater specialization among businesses and joint efforts to promote their products. Long-term contracts, well-developed distribution networks and equipment servicing in the partner country can support more sustained growth.

Investment and Production Links

Between 2017 and 2025, Uzbekistan attracted $2.5 billion in foreign direct investment and loans from Central Asian countries, including $1.3 billion in 2025. The corresponding figures for Azerbaijan were $318.6 million and $173.7 million. As of August 2026, Uzbekistan had 2,538 operating companies with investment from Central Asian countries and 503 with Azerbaijani investment.

The Azerbaijan–Uzbekistan Investment Company supports joint projects and has charter capital of $500 million. Joint investment institutions also operate in Central Asia, including Uzbek–Kyrgyz and Uzbek–Tajik institutions. They enable partners to finance projects together and share risks.

Practical Steps Since the Tashkent Meeting

On November 17, 2025, Uzbekistan and Turkmenistan launched the Shavat–Dashoguz border trade zone. It houses trading and warehousing facilities, customs, quarantine and other inspection services. Government services are to be provided through a single-window system.

On March 26, 2026, Uzbekistan and Tajikistan launched ten joint projects in furniture, leather and textile production, household appliances and other industries. At the same time, facilities were launched to produce dairy products in Andijan Region, and fruit juices and metal briquettes in Surkhandarya Region.

During Uzbek–Kyrgyz talks on July 30, 2026, the two sides agreed to establish an Interstate Council. A package of trade contracts and investment agreements was put together at the preceding business forum. They also reached agreements on developing border, trade and logistics infrastructure along the China–Kyrgyzstan–Uzbekistan railway and digitizing permit procedures.

On July 31, 2026, the leaders of Central Asia and Azerbaijan held an informal meeting at Issyk-Kul. The President of Uzbekistan called for further work on industrial and technological production chains, shared digital services and investment platforms.

On August 23, 2026, Uzbekistan and Azerbaijan signed a program to increase trade to $1 billion by 2030, along with an action plan for investment and trade. The third meeting of the Supreme Interstate Council also launched joint projects in finance, building materials, oil and gas, mining, agriculture and other sectors.

Industrial Cooperation and Access to New Markets

CERR estimates that replacing some imports from third countries with supplies from within the region could increase intraregional trade by approximately $11.4 billion. Realizing this potential will depend on whether regional suppliers can compete. This requires matching imported products with what regional producers can offer and identifying barriers to concluding contracts.

Developing the Middle Corridor through the Caspian Sea and the South Caucasus could expand Uzbekistan’s opportunities to supply markets to the west. The route’s competitiveness depends on the total cost of delivery, regular departures and transit times along each section. This requires coordination among railways, ports, carriers and customs services.

Joint preparations for the Kambarata-1 hydropower plant and work on Uzbek–Tajik hydropower projects require agreement on financing, water use arrangements and electricity supply terms. Investment decisions need to reflect growing industrial demand and businesses’ need for reliable energy supplies.

An interagency working group has also been established to prepare joint green energy projects involving Uzbekistan, Kazakhstan and Azerbaijan.

Priorities for the Upcoming Meeting

The upcoming meeting in Avaza offers an opportunity to advance joint projects by addressing trade barriers, coordinating transport arrangements and securing financing. Moving beyond separate bilateral projects to align business conditions across the expanded group of participating countries could help advance these efforts.

Projects backed by proven demand, competitive production and reliable logistics can deliver the most tangible economic benefits. The regional mechanisms proposed by Uzbekistan could support these projects by removing trade barriers, coordinating infrastructure development and improving investment conditions. Under these conditions, growth in trade within the region would be accompanied by more value added within the region and a stronger position for its producers in international markets.

Edvard Romanov
Center for Economic Research and Reforms

The Head of State identified priorities for updating the activities of the Ministry of Foreign Affairs and foreign diplomatic missions

On January 15, an expanded meeting was chaired by President Shavkat Mirziyoyev on the activities of the Ministry of Foreign Affairs and diplomatic missions abroad, reports Dunyo IA correspondent.

Opening the session, the Head of our state noted that the meeting is taking place amid sharp geopolitical changes in the world and increasing threats to the sovereignty of states. In this regard, the need to critically assess current foreign policy activities and move to a renewed format for organizing the work of the Ministry of Foreign Affairs and foreign diplomatic missions was emphasized.

President noted that 2025 had been a productive year for the country's foreign policy. During the year, high-level visits were made to 26 foreign countries, and for the first time in recent history, visits to Uzbekistan were organized by the leaders of a number of countries. Multilateral dialogues in the “Central Asia Plus” format became productive. In recent years, strategic partnerships have been established with 11 countries, bringing the total number to 19, and allied relations have been built with Kazakhstan, Azerbaijan, and Tajikistan.

– As a result of an open, pragmatic, thoughtful and proactive foreign policy, Uzbekistan is consistently strengthening its position as one of the global centres of peace and diplomacy, – emphasized President.

Since 2017, 16 new diplomatic missions and consulates have been opened abroad, bringing their total number to 60, and the number of countries with which diplomatic relations have been established to 165. There has also been an increase in the number of staff and salaries of employees of embassies, consular offices, representative offices to international organizations and employees of the Ministry of Foreign Affairs.

At the same time, a fundamental question was raised as to whether all diplomatic missions are making full use of the opportunities provided.

– In the current environment, an ambassador is not just a person who conducts political dialogue. An ambassador is a state representative who attracts investment and technologies, opens new export markets, launches transport and logistics corridors, increases tourist flows, creates conditions for legal labor migration and, most importantly, protects the rights of our citizens, - emphasized President.

In this regard, it was noted that key performance indicators for ambassadors should include the volume of export revenues from the countries of residence, growth in tourist flows and the effectiveness of organizing legal labor migration.

Particular emphasis was placed on the need to increase exports and investments by strengthening economic diplomacy.

As part of bilateral and multilateral events in 2025, agreements were signed on investment projects and trade contracts totaling $160 billion. For the first time in history, foreign trade turnover exceeded $80 billion, exports reached $33,5 billion, and foreign investment exceeded $43 billion. Exports to 75 countries increased by almost $4,5 billion.

In view of this, the ambassadors have been tasked with expanding export deliveries to the Middle East, Europe, Asia, and Africa, as well as implementing specific projects in the fields of industry, agriculture, the chemical industry, the textile industry, greenhouse farming, and the service sector. At the same time, it was noted that Uzbekistan's products remain insufficiently recognized in certain markets.

It was noted that the growth of logistics costs has a negative impact on the competitiveness of domestic products. In this regard, the need to diversify transit routes, optimize logistics chains, and develop additional proposals to reduce transportation costs when entering European markets was indicated.

In the agricultural sector, tasks have been set for researching and implementing water-saving technologies, modern agricultural technologies, and innovative greenhouse solutions. Along with this, measures have been outlined to expand export markets for chemical industry products, bring domestic manufacturers up to international standards and requirements, and organize specialized exhibitions and presentations.

The need to intensify trade and economic cooperation with the African continent as one of the promising new export destinations has been emphasized. To this end, a clear roadmap is to be developed with the participation of relevant ministries and foreign diplomatic missions.

It was noted that ambassadors should be directly interested in finding promising projects, attracting them, and implementing them in practice. In this regard, it was decided to introduce financial incentives for ambassadors who bring specific investment or export projects to a logical conclusion.

Criticism was levelled at the insufficient realisation of existing potential in a number of areas. In particular, it was noted that opportunities to attract international grants are not being fully exploited. It was noted that with closer and more systematic interaction between ministries, industry leaders, and ambassadors, it would have been possible to attract an additional $200-300 million in grant funds last year.

As noted, international organizations and donor countries announce grant programs worth approximately $200 billion annually. In this regard, the task has been set to implement a unified, systematic and effective approach to working with grants.

In addition, the need to take concrete measures, together with the ambassadors to the United States, the United Kingdom, Germany, Switzerland, China, Japan and Singapore, to attract leading foreign universities ranked in the top 100 worldwide as partners of Uzbek higher education institutions was emphasized.

It was noted that cooperation between regions and diplomatic missions in expanding foreign economic relations is still insufficient. The need for active participation of regional governors, together with ambassadors, in the systematic promotion of export-oriented products of the regions and in facilitating the entry of local enterprises into foreign markets was emphasized.

Providing Uzbek citizens with legal and high-paying jobs abroad was identified as another priority area. The expansion of the geography of organized labor migration was noted, while it was pointed out that in a number of countries, work in this area is not sufficiently effective and relevant instructions were given in this regard.

It was emphasized that embassies and consulates should actively protect the rights and legitimate interests of citizens and provide qualified legal assistance in each specific case. The task has been set to abandon "office diplomacy", strengthen work in the field and establish direct dialogue with compatriots.

In the field of tourism, the need to further strengthen the role of ambassadors, introduce new approaches to promoting the country's tourism and cultural potential, make effective use of visa-free regimes and attract international outsourcing companies has been identified.

Issues related to expanding foreign policy ties, high-quality and timely preparation of high-level visits, retraining of diplomatic personnel, and the formation of a reserve of promising specialists were also discussed.

The intensification of foreign information policy and the improvement of the country's international image through systematic work with foreign media and the implementation of special media projects were identified as priority tasks.

The need to update the Concept of foreign policy of the Republic of Uzbekistan, review its priority areas, and define clear tasks for protecting national interests and strengthening the country's position in the international arena was emphasized.

As the President noted, the new concept should comprehensively reflect long-term strategic goals, the logic of internal reforms as well as national interests in the areas of economic diplomacy, security, investment, exports, transport and logistics, water and climate issues.

In order to give proper recognition to the achievements of diplomats, it was proposed to establish the honorary title of “Honored Diplomat of the Republic of Uzbekistan".

At the end of the meeting, President Shavkat Mirziyoyev emphasized: “The time has come for a new generation of diplomats – those who achieve concrete results and firmly defend the interests of Uzbekistan in the international arena”.

In the course of the session, reports and proposals of our ambassadors abroad were heard.

Dunyo IA

September 22-24^th, 2026, traditional Plastex Uzbekistan 2026 exhibition will be held in the capital of Uzbekistan

More than 250 companies and brands from Austria, Germany, India, Iran, Italy, China, Latvia, Russia, Saudi Arabia, Türkiye and Uzbekistan have confirmed their participation in the exhibition.

Organizers: international exhibition company Iteca Exhibitions and its partner ICA Eurasia Group.

Every autumn, Plastex Uzbekistan brings together equipment manufacturers, raw material suppliers, processors, engineers and executives from the polymer industry in Tashkent. As the only specialized plastics industry exhibition in Uzbekistan, it annually showcases the latest developments in the chemical and polymer sectors.

Among the new exhibitors are companies that will present their solutions to Uzbek industry professionals for the first time. “Koenig & Bauer Kammann GmbH (Germany)” has been a leading manufacturer of fully automated screen-printing machines for the decoration of plastic containers for more than 70 years. “Definitive Innovation (Italy)” is a reliable partner in advanced solutions for dosing, mixing, filtration, storage, pneumatic conveying and industrial automation technologies. “PLAS MEC S.R.L. (Italy)” enjoys worldwide recognition as a leading manufacturer of mixing systems for PVC, plastics, masterbatches, powder coatings, engineering plastics and other high-quality materials. “TERMOKAR MAKİNA (Türkiye)” offers highly efficient chillers and heat-exchange solutions for industries including plastics, rubber, medical, pharmaceutical, food and automotive manufacturing. Local manufacturing will be represented at the exhibition by “NOVOPLAST TPE (Uzbekistan)”, a leading manufacturer of thermoplastic elastomers and products made from them.

Visitors will be able to explore modern equipment for plastics production and processing, polymer raw materials and specialty additives, moulds and dies, auxiliary equipment, as well as solutions for the packaging and recycling industries.

One of the key advantages of Plastex Uzbekistan remains its practical exhibition format. Visitors will have the opportunity to see equipment in operation, receive consultations from company representatives and discuss technical issues directly with manufacturers and suppliers.

Since 2025, Plastex Uzbekistan has been held jointly with “4P Central Asia”, bringing together the printing, packaging, plastics and polymer sectors. This format expands the exhibition and enables industry professionals to explore solutions from several interconnected sectors during a single visit.

Chemical and polymer industry remains one of the priority areas of Uzbekistan’s industrial modernization. Growing polymer production and processing are creating sustained demand for modern equipment, raw materials and technologies. In this context, Plastex Uzbekistan serves as an important B2B platform for international equipment and raw material manufacturers, chambers of commerce and industry associations. It provides an opportunity to gain first-hand insight into the current needs of the Uzbek market, assess prospects for localization and exports and establish direct contacts with key industry enterprises.

For official delegations, the exhibition is of practical interest as a tool for assessing the investment and trade potential of the polymer industry - both from the perspective of the Uzbek market and in the context of advanced global technologies showcased at the exhibition by leading international manufacturers.

Dunyo IA

Development of the “Central Asia Plus” Formats

In recent years, Central Asia has increasingly acted as a unified region in international relations. Alongside bilateral ties, “Central Asia Plus” formats have been developing, allowing the countries to coordinate their shared interests and discuss trade, investment, industrial cooperation, transportation, energy, and security with external partners.

Existing formats include “Central Asia–European Union,” “Central Asia–Russia,” the C5+1 platform with the United States, as well as dialogue mechanisms with China, Japan, South Korea, and other partners. These mechanisms do not replace bilateral cooperation but complement it with a regional agenda.

Central Asia’s Multivector Cooperation

The first “Central Asia–European Union” summit, held in Samarkand in April 2025, focused on developing a strategic partnership between the two regions. Particular attention was paid to investment, technological modernization, green energy, critical minerals, transportation, and logistics.

Uzbekistan proposed establishing an investment platform to advance regional projects and developing coordinated conditions for expanding the Trans-Caspian Transport Corridor. It also proposed holding a meeting of the transport ministers of the countries located along the route.

The second “Central Asia–Russia” summit, held in October 2025, focused on expanding trade, industrial cooperation, and collaboration in energy and transportation.

Uzbekistan proposed holding annual summits, establishing a coordination council at the deputy prime minister level, and creating an integrated transportation and logistics framework combining national road, rail, and air connectivity programs. Particular attention was also paid to developing the North–South Corridor and resilient production chains.

Thus, the “Central Asia Plus” formats enable the region to develop cooperation in several areas simultaneously. Their purpose is not to choose a single partner or route, but to expand economic ties and strengthen the region’s resilience to external changes.

Establishing a New C5+1 Format

The “Central Asia + Azerbaijan” format differs from other platforms because Azerbaijan is directly connected to the region through the Caspian Sea and is a key component of transportation routes leading toward the South Caucasus, Türkiye, and Europe.

For Central Asia, Azerbaijan is an important transit, investment, and industrial partner. For Azerbaijan, the Central Asian countries represent a growing market and a source of cargo flows for its port, railway, and logistics infrastructure. The new format therefore has not only political significance but also a specific economic dimension.

At the seventh Consultative Meeting of the Heads of State of Central Asia, held in Tashkent on November 16, 2025, a decision was made to grant Azerbaijan full participation. This became the first meeting of regional leaders in the expanded format.

President of Uzbekistan Shavkat Mirziyoyev proposed gradually transforming the consultative dialogue into a strategic “Central Asian Community” format. Initial steps included strengthening the institutional framework of the meetings, establishing a rotating secretariat, and elevating the status of national coordinators to special representatives of the presidents.

In trade and economic cooperation, Uzbekistan proposed developing a Comprehensive Regional Program for Trade and Economic Cooperation through 2035. The document is expected to address the removal of administrative barriers, simplification of customs and tax procedures, joint use of industrial and free economic zones, and other measures to increase intraregional trade.

Initiatives were also proposed to establish a common investment space and develop e-commerce. These measures include coordinating basic approaches to investor protection, creating regional digital marketplaces, and developing reliable digital payment systems.

Particular attention was paid to transportation and energy infrastructure. Uzbekistan proposed establishing an Infrastructure Development Council at the deputy prime minister level. Priorities included the construction and modernization of roads, railways, border checkpoints, energy networks, green corridors, and digital infrastructure.

Transportation initiatives covered the China–Kyrgyzstan–Uzbekistan railway, the Trans-Afghan route, and the Trans-Caspian transportation routes connecting Central Asia with the markets of the Caucasus, Türkiye, and Europe.

In 2026, the meeting is expected to continue under Turkmenistan’s chairmanship in the new “Central Asia and Azerbaijan” format.

Economic Foundation of Cooperation

The expansion of the regional format is taking place against the backdrop of growing trade and investment ties between Uzbekistan and the Central Asian countries.

In 2025, Uzbekistan’s trade turnover with the countries of the region reached $8.3 billion. Exports totaled approximately $3.2 billion, while imports amounted to $5.1 billion. Kazakhstan remained Uzbekistan’s largest regional trading partner, accounting for 60.2% of its trade with Central Asian countries. Turkmenistan and Kyrgyzstan each accounted for 14.5%, while Tajikistan accounted for 11%.

As of June 2026, Uzbekistan was home to 2,384 enterprises with capital from Central Asian countries. These included 1,283 enterprises with Kazakh capital, 442 with Tajik capital, 362 with Kyrgyz capital, and 297 with Turkmen capital.

The total volume of direct investment and loans attracted from the countries of the region in 2017–2025 amounted to $2.5 billion. In 2025 alone, this figure reached $1.3 billion.

At the same time, the potential of intraregional trade has not been fully utilized. According to calculations by the Center for Economic Research and Reforms, replacing some goods imported from third countries with intraregional supplies could increase trade within Central Asia by $11.4 billion, more than doubling its current volume. Unlocking this potential requires reducing tariff and non-tariff barriers, improving information exchange among businesses, and developing regional production chains.

Uzbekistan’s economic relations with Azerbaijan are also strengthening. Between 2017 and 2025, bilateral trade increased 9.5-fold, from $32.5 million to $307.3 million. Uzbekistan’s exports reached $227.3 million, while imports from Azerbaijan amounted to $80 million.

Uzbekistan’s exports mainly consist of manufactured goods, machinery and transportation equipment, food products, beverages, finished goods, and services. Imports are dominated by food and manufactured goods, machinery, transportation equipment, and chemical products.

Uzbekistan is home to 460 enterprises with Azerbaijani capital. Their number has increased 6.5-fold since 2017. In 2025, Azerbaijani investment in Uzbekistan totaled $173.7 million, bringing cumulative investment to $318.6 million.

An additional instrument was created in 2023 with the establishment of the Azerbaijan–Uzbekistan Investment Company, which has authorized capital of $500 million and can finance projects in Uzbekistan, Azerbaijan, and third countries.

Cooperation is also developing in the automotive industry, textiles, construction, agriculture, and other sectors.

The Middle Corridor and Azerbaijan

Expanding trade and industrial cooperation requires reliable transportation infrastructure. For Uzbekistan, which has no direct access to the sea, developing alternative routes is essential to strengthening the resilience of foreign trade.

The Middle Corridor connects China and Central Asia with the South Caucasus, Türkiye, and Europe. Cargo from Uzbekistan can be transported through Kazakhstan or Turkmenistan to Caspian ports, shipped by sea to Azerbaijan, and then delivered to European markets through Georgia and Türkiye or across the Black Sea.

Azerbaijan occupies a central position in the western section of the route. Its transportation infrastructure includes the Alat International Sea Trade Port, the Caspian merchant fleet, and the Baku–Tbilisi–Kars railway.

The capacity of the Alat Port is expected to increase from 15 million to 25 million metric tons, while the capacity of the Baku–Tbilisi–Kars railway has been expanded to 5 million metric tons. A unified digital platform is also being developed to simplify transportation operations and trade between Caspian ports.

According to the World Bank, if the necessary infrastructure and organizational reforms are implemented, freight traffic along the Middle Corridor could triple by 2030, while delivery times could be reduced by half.

During the first nine months of 2025, transit freight between Uzbekistan and Azerbaijan exceeded 1 million metric tons. This indicates growing prospects for using Azerbaijan’s transportation infrastructure as a transit route for Uzbek cargo.

The opening of the Zangezur Corridor is also expected to create additional opportunities for all Central Asian countries.

Opportunities for Uzbekistan and Central Asia

For Uzbekistan, the Middle Corridor provides an additional route to the markets of Azerbaijan, Georgia, Türkiye, and the European Union. This makes it possible to diversify transportation routes and reduce foreign trade dependence on a limited number of corridors.

Delivery times and predictability are especially important. They directly affect the competitiveness of textiles, fruits and vegetables, electrical equipment, automobiles, and other high-value-added products. Coordinating rail and maritime transportation schedules, introducing digital documentation, and reducing border-crossing times could lower exporters’ costs.

The corridor’s development will also create demand for dry ports, multimodal terminals, warehouses and cold-storage facilities, repair enterprises, and insurance, financial, and digital services. Transportation can therefore be viewed not only as a means of delivering goods but also as a separate area of investment and industrial development.

Additional opportunities are associated with the construction of the China–Kyrgyzstan–Uzbekistan railway. Its integration with the Middle Corridor would establish a shorter and more resilient transportation link between China, Central Asia, the Caucasus, and Europe.

For Central Asia as a whole, developing the route would make it possible to consolidate cargo flows, harmonize transportation procedures, and increase the region’s attractiveness to international investors. A larger and more stable cargo base would support regular train and vessel services, reduce per-unit costs, and expand the geographic reach of shipments.

The Middle Corridor is not viewed as a replacement for northern or southern routes. Its main purpose is to expand available options, strengthen logistics resilience, and create additional connections to external markets.

The Importance of Industrial Cooperation

Transportation cooperation will have a long-term impact if it is linked to the development of manufacturing. Growth in transit alone will not ensure the full realization of the new format’s economic potential.

Uzbekistan, other Central Asian countries, and Azerbaijan could establish joint production chains in the automotive industry, textiles, agricultural processing, electrical engineering, construction materials, chemicals, and machinery manufacturing.

An analysis by the Center for Economic Research and Reforms shows that regional enterprises could supply one another with raw materials, components, and finished products, reducing their dependence on imports from third countries.

One promising area is the establishment of joint industrial zones and logistics centers along the Middle Corridor. The idea of creating “mirror” special economic zones in Uzbekistan and Azerbaijan has not yet reached the implementation stage, but it offers significant development potential.

At the same time, growing bilateral trade, the work of the joint investment company, and expanding transportation links are creating conditions for revisiting this initiative.

Such zones could specialize in product assembly and processing, consolidation of export shipments, warehousing operations, and transportation services. Establishing interconnected production facilities in Uzbekistan and Azerbaijan would combine Central Asia’s industrial potential with the transportation infrastructure of the South Caucasus.

Conclusion

The first meeting in the expanded format established a political and institutional foundation for cooperation between Central Asia and Azerbaijan. The next meeting, under Turkmenistan’s chairmanship, could focus on the practical development of the Middle Corridor and the expansion of industrial cooperation.

In transportation, the main priorities include coordinating tariffs and procedures, developing regular rail and maritime services, modernizing port and border infrastructure, digitizing documentation, and exploring opportunities to connect the Middle Corridor with the China–Kyrgyzstan–Uzbekistan railway.

In industry, priorities could include establishing joint production chains, developing industrial zones, implementing projects through the Azerbaijan–Uzbekistan Investment Company, and attracting international financial institutions to infrastructure and manufacturing projects.

For Uzbekistan, the “Central Asia + Azerbaijan” format creates opportunities to expand exports, diversify transportation routes, and attract investment in manufacturing and logistics. For other Central Asian countries, it provides an additional route to Western markets.

The format’s future significance will depend on how consistently the participating countries develop the Middle Corridor and complement the transportation agenda with industrial and investment cooperation. The upcoming meeting could provide practical momentum for implementing the most ambitious and mutually beneficial projects.

Edvard Romanov,

Center for Economic Research and Reforms

1. Introduction

Central and South Asia form one of Eurasia’s most significant geographic junctions. Central Asia connects the continent’s east–west and north–south routes, while South Asia contains one of the world’s largest population bases and consumer markets. Taken together, the countries of the two subregions have a population of more than 2 billion people; however, their direct economic interaction remains below its potential level.

The scale of the potential market is confirmed by the figures: in 2024, the population of South Asia was approximately 1.68 billion people, while the region’s combined GDP was about US$4.5 trillion. At the same time, the economy of the five Central Asian countries in 2024 amounted to approximately US$489 billion. However, the level of interregional integration remains low: even within South Asia, intraregional trade is estimated at around 5% of total trade turnover, which is significantly lower than the ASEAN figure^[1][2][3].

This is evident in trade statistics: Central Asia’s main trade flows continue to be oriented toward Russia, China, the European Union, Türkiye, and the Middle East, while trade with South Asia occupies a comparatively limited niche.

The underused potential is explained not by a lack of demand, but by structural constraints. Between the two subregions, there are mountain barriers, complex cross-border routes, differing levels of integration into international supply chains, non-uniform customs and technical procedures, as well as the Afghanistan factor, which is simultaneously the shortest connecting link and the most sensitive element of the regional architecture. Therefore, the issue of connectivity has not only commercial but also strategic significance.

The restoration of economic ties between Central and South Asia should not be viewed as a romanticized return to historical routes. In modern conditions, it is a matter of competitiveness, supply-chain security, energy resilience, and diversification of foreign economic directions. For the countries of Central Asia, the southern route opens shorter access to the ports of the Arabian Sea and the Indian Ocean. For the countries of South Asia, it creates an opportunity to gain access to energy resources, food products, industrial goods, and new markets in Eurasia.

Uzbekistan occupies a special place in this logic. It is located in the central part of the region, borders all Central Asian states and Afghanistan, and therefore is capable of forming a link between the internal markets of Central Asia and the southern direction. At the same time, the role of a connector state means more than the transit of goods. It includes the coordination of infrastructure projects, the development of logistics services, the improvement of institutional quality, the creation of an analytical basis for decision-making, and the involvement of the private sector in interregional projects.

2. Historical and geographical preconditions for connectivity

The historical connection between Central and South Asia was formed long before the emergence of modern state borders. The cities of Transoxiana, Khorasan, Bactria, and northern India were part of a network of caravan routes and exchanges of artisanal goods, knowledge, religious traditions, and financial practices. Samarkand, Bukhara, Balkh, Merv, Kabul, Peshawar, and Lahore, in different periods, served as trade and cultural hubs linking the Eurasian space.

However, historical connectedness does not automatically translate into economic integration today. Modern supply chains depend on railways, highways, ports, energy networks, digital cargo-tracking systems, insurance, banking settlements, and predictable rules. Where even one of these elements is absent, transit becomes expensive, slow, and risky.

The geography of the region creates both incentives and constraints. On the one hand, the distance from Uzbekistan’s southern borders to northern Afghanistan is relatively short, and the route through Afghanistan is potentially the shortest overland path from Central Asia to Pakistan and onward to the ports of the Indian Ocean. On the other hand, mountain ranges, differences in railway gauge, the limited capacity of border infrastructure, security issues, and insufficient standardization of procedures increase the cost of projects.

Uzbekistan’s geographical role has not only qualitative but also measurable significance: the country is one of only two double-landlocked states in the world and, at the same time, the only state bordering all four other Central Asian countries as well as Afghanistan. In this context, the Mazar-i-Sharif–Kabul–Peshawar railway project, with a length of approximately 573 km, acquires systemic importance, since it could reduce the time and cost of transportation toward Pakistan’s ports by roughly 30%^[4].

Therefore, connectivity should be understood more broadly than the physical connection of two points on a map. In the modern economy, it includes four dimensions. The first is infrastructural: roads, railways, terminals, ports, and energy networks. The second is institutional: customs, tariffs, standards, sanitary and phytosanitary rules, permits, and transit guarantees. The third is commercial: demand, purchasing power, contracts, logistics companies, insurance, and banking channels. The fourth is social and humanitarian: education, labor skills, tourism, medical ties, and research cooperation.

This approach helps avoid oversimplification. Even the shortest road will not become a sustainable corridor unless it is supported by a reliable legal environment, competitive tariffs, financial guarantees, and coordination among states.

3. Current state of trade and economic cooperation

Trade and economic ties between Central and South Asia are developing, but their scale still does not correspond to the size of the markets. Trade between Central Asian countries and India, Pakistan, Bangladesh, Sri Lanka, and Afghanistan remains relatively modest compared with their trade with China, Russia, the European Union, Türkiye, and countries of the Middle East.

Central Asia supplies, or could potentially expand supplies to South Asia, in such areas as agricultural products, grain, fruit and vegetable products, textiles, fertilizers, energy goods, certain types of metals, and industrial raw materials. South Asia, primarily India and Pakistan, holds competitive positions in pharmaceuticals, medical goods, IT services, equipment, textile products, processed food products, and consumer goods.

In recent years, Uzbekistan has been strengthening the southern direction of its foreign economic policy. Trade ties with India and Pakistan are developing through pharmaceuticals, textiles, food products, services, logistics, and investment projects. Uzbekistan’s foreign trade in the southern direction is already growing, but it still occupies a limited place in the overall structure of foreign trade. The largest trade flows with South Asian countries are with Afghanistan and India. However, the very fact that certain bilateral flows are growing does not solve the main problem: interregional trade remains fragmented. In order to turn it into a sustainable market, it is necessary to reduce transaction costs, ensure the predictability of transit, make standards comparable, and develop business services.

The issue of trade data is especially important. Mutual trade is often assessed using different sources, while the statistics of exporting countries and importing countries may diverge. To develop effective policy, a regularly updated data panel is needed, broken down by corridors, types of cargo, border-crossing times, transportation costs, return loads, the number of permits, and the actual use of preferential regimes. Without such a database, regional initiatives risk remaining merely declaratory.

4. Transport and logistics infrastructure as the basis of connectivity

Transport infrastructure is the material foundation for the rapprochement of Central and South Asia. At the same time, it is more accurate to speak not of a single route, but of a portfolio of corridors. Relying on only one route increases the vulnerability of the entire system. A diversified network of routes through Afghanistan, Iran, the Caspian Sea, the Caucasus, and existing Eurasian directions creates redundancy, reduces risks, and strengthens the negotiating position of shippers.

The key project in the southern direction remains the trans-Afghan railway corridor Mazar-i-Sharif–Kabul–Peshawar. Its strategic value lies in its potential to connect Uzbekistan and other Central Asian countries with Pakistan’s ports, including Karachi, Qasim, and Gwadar. If implemented, such a corridor could reduce the distance and delivery time for certain types of cargo. However, the project requires the resolution of several complex issues: financing, security, technical parameters, railway gauge compatibility, the operating model, tariffs, and the distribution of risks among participants.

The Termez–Hairatan hub in Uzbekistan has particular significance. It is the closest entry point from Uzbekistan into Afghanistan and is already used as a logistics, humanitarian, and trade channel. The development of terminals, warehouses, customs capacities, multimodal transport services, and digital cargo-control systems could turn this hub into a stable anchor point for interregional trade.

Alongside the trans-Afghan route, the route through Iran is also important. For India, Central Asia, and Afghanistan, the Chabahar port is of particular significance, as are its links with the International North–South Transport Corridor and the Ashgabat Agreement. This option does not replace the trans-Afghan route, but it increases the resilience of the trade system. Events of recent years have shown that the closure or restriction of individual routes quickly increases the importance of alternative pathways through Iran and the countries of Central Asia.

Road corridors remain a necessary complement to railways. They are especially important for perishable products, small consignments, e-commerce, pharmaceuticals, and high-value-added goods. In this area, the key factors are not only roads, but also border procedures, the permit system for carriers, weight control, insurance, the safety of parking areas, and access to backhaul cargo.

The development of air connectivity plays a separate role. Direct flights between Tashkent, Samarkand, Almaty, Astana, Delhi, Mumbai, Lahore, and other cities do not create mass freight logistics, but they reduce barriers to business travel, tourism, education, medical services, and managerial oversight of investment projects. For modern business, such mobility is not a secondary factor, but a systemic one.

5. Energy partnership: from project-based logic to a regional market

Energy is one of the most obvious areas of complementarity between Central and South Asia. The Central Asian countries possess significant resources in natural gas, hydropower, solar power, and wind generation. South Asia, primarily Pakistan, India, Bangladesh, and Afghanistan, faces high energy demand, seasonal consumption peaks, and the need for a more reliable supply structure.

The most advanced interregional project in the electricity sector is CASA-1000. According to World Bank materials, the project is intended to ensure the transmission of up to 1,300 MW of surplus summer electricity from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan. The project also provides for high-voltage transmission infrastructure, including power transmission lines and converter stations. Its significance goes beyond the energy sector: it demonstrates the possibility of contract-based electricity trade between the subregions with the participation of international financial institutions.

In the gas sector, the best-known project is TAPI: Turkmenistan–Afghanistan–Pakistan–India. Its planned logic is straightforward: Turkmen gas is expected to flow through Afghanistan to the energy-deficient markets of South Asia. Published descriptions of the project usually indicate a length of approximately 1,800 km and a designed capacity of up to 33 billion cubic meters of gas per year. However, TAPI remains a complex project with a high dependence on security, financing, long-term contracts, payment guarantees, and political coordination among the participants.

CASA-1000 has not only political but also measurable infrastructural significance: the project cost is estimated at approximately US$1.2 billion, while the designed transmission capacity is 1,300 MW. The Kyrgyz component provides for around 456 km of 500 kV power transmission lines. This makes it possible to view CASA-1000 as the first major example of contract-based interregional electricity trade between Central and South Asia^[5][6].

The new energy agenda includes not only the export of fuel and electricity, but also the development of low-carbon solutions. Uzbekistan, Kazakhstan, Kyrgyzstan, and Tajikistan are expanding projects in solar, wind, and hydropower, while also modernizing their grids. In the long term, South Asia could become a market for seasonal electricity and energy services from Central Asia. However, this requires rules for cross-border trade, compatible dispatch mechanisms, commercial guarantees, transparent tariffs, and investment in grid resilience.

Energy cooperation must take into account climate and water-related factors. In Central Asia, hydropower is closely linked to irrigation and water resource management. In South Asia, electricity demand depends on temperature peaks, urbanization, and industrial growth. Therefore, energy projects should be accompanied by mechanisms for climate adaptation, forecasting water availability, improving energy efficiency, and developing energy storage systems.

6. Investment cooperation and business ties

Investment cooperation between Central and South Asia is still developing on a case-by-case basis, but it has significant potential. Unlike trade in raw materials, investment requires a higher level of trust, legal certainty, protection of property rights, clear tax regimes, access to foreign-exchange settlements, and high-quality business information.

The most promising areas include pharmaceuticals, medical services, agro-processing, textiles, logistics, warehouse infrastructure, IT services, education, tourism, financial technologies, renewable energy, and the production of components for infrastructure projects. South Asian companies have strong competencies in IT, pharmaceuticals, and services, while Central Asia offers access to raw materials, industrial sites, growing domestic markets, and transit opportunities.

An important task is to move from one-off business contacts to a systematic investment pipeline. This requires project catalogues, clear requirements for investors, standardized public-private partnership models, dispute-resolution mechanisms, insurance against political and commercial risks, and joint workforce training programs.

Small and medium-sized enterprises are of particular importance. Large infrastructure projects create the foundation, but it is small and medium-sized businesses that fill corridors with real goods and services. For them, access to information, affordable logistics services, digital marketplaces, simplified payments, standardized documents, and support in entering a new market are critical.

Development institutions and international financial organizations can play a catalytic role. Their participation reduces risks, improves the quality of project preparation, and disciplines the participants. However, external financing does not replace national reforms. Without clear rules, transparent statistics, and effective courts, even concessional loans will not create a sustainable flow of investment.

7. The strategic role of Uzbekistan as a connector state

Uzbekistan possesses a unique set of preconditions for playing the role of a connector state. It is located at the center of Central Asia, borders all the countries of the region as well as Afghanistan, and is also a major demographic and industrial market. For a country without access to the sea, the development of external corridors is not an optional task, but a condition for long-term competitiveness.

Uzbekistan’s role is not limited to transit. A transit country earns revenue from the movement of goods, but a connector state shapes rules, services, trust, and the institutional environment. This means developing multimodal hubs, creating logistics centers, digitalizing customs procedures, expanding railway and road links, training personnel, attracting banks and insurance organizations, and providing analytical support for projects.

The southern direction strengthens Uzbekistan’s foreign economic diversification. It complements the country’s already existing links in the northern, eastern, and western directions. At the same time, the diversification of routes reduces dependence on individual markets and transit pathways, which is especially important amid instability in global trade, changes in tariff policy, and geopolitical restrictions.

Termez occupies a special place in this strategy. It can serve as a border logistics center, a platform for trade with Afghanistan, a hub of humanitarian and commercial infrastructure, and a symbolic space for discussing connectivity between Central and South Asia. To turn this role into a sustainable result, investment is needed in terminals, railway approaches, warehouse capacity, services for carriers, and a system for analyzing cargo flows.

Uzbekistan’s strength also lies in its ability to put forward multilateral initiatives. Interregional connectivity cannot be implemented through bilateral agreements alone. It requires the alignment of interests among the countries of Central Asia, the countries of South Asia, Afghanistan, international financial institutions, business, and the expert community. In this sphere, Uzbekistan can act as a coordinator of the agenda and a provider of analytical solutions.

8. Key barriers and ways to overcome them

The first barrier is incomplete infrastructure. Many corridors exist in the form of project concepts or partially functioning routes. To transform them into commercially sustainable directions, technical and economic feasibility studies, agreed tariffs, clear sources of financing, unified operational models, and transparent risk allocation are required.

The second barrier is security and the predictability of transit. For business, what matters is not only the length of the route, but also the likelihood of delays, losses, border closures, changes in rules, and additional payments. Therefore, transport policy should include insurance mechanisms, security standards, corridor monitoring, crisis protocols, and regular information exchange among government agencies.

The third barrier is administrative fragmentation. Different documents, uncoordinated customs procedures, weak advance declaration, the absence of mutual recognition of certain certificates, and limited digital interoperability increase the cost of trade. The solution lies in the transition to electronic transport documents, the expansion of the single-window principle, the introduction of risk-based control, and the coordination of technical standards.

The scale of the financial challenge can be assessed through the example of CAREC: in 2021–2024, transport investment under the program amounted to US$8.61 billion, with a significant share of financing provided by international partners. This shows that infrastructure corridors require not only a political decision, but also a sustainable financial architecture^[7][8].

Administrative barriers have a measurable expression. According to CAREC monitoring, in 2022, the average border-crossing time on road corridors was 9.9 hours, while on railway corridors it was 40.6 hours. This confirms that the digitalization of documents, advance declaration, and risk-based control can produce an effect even without the immediate construction of new arterial routes.

The fourth barrier is financial constraints. Infrastructure projects require large capital investments and have long payback periods. A combination of budget funds, loans from international financial organizations, public-private partnerships, guarantees, project financing, and blended-finance mechanisms is needed. At the same time, each project must undergo an assessment of commercial viability, not only political attractiveness.

The fifth barrier is the lack of market information. Companies often do not know potential partners, market requirements, logistics tariffs, certification rules, or available financial instruments. This barrier can be reduced through digital trade platforms, business missions, sectoral catalogues, regular exhibitions, analytical reviews, and consulting centers under chambers of commerce and industry.

The sixth barrier is climate and resource-related risks. Mountainous areas, droughts, floods, changes in glacial runoff, and extreme weather events affect roads, energy, and agriculture. New corridors should be designed with climate resilience in mind, while energy projects should take into account the water balance and the seasonality of demand.

Practical priorities through 2030

9. The Termez Dialogue as an institutional foundation for cooperation

The Termez Dialogue on Connectivity between Central and South Asia can become an important institutional platform for coordinating the interregional agenda. In 2025, the first dialogue was held in Termez, dedicated to the formation of a shared space of peace, friendship, and prosperity. The very choice of Termez emphasizes the city’s practical role as Uzbekistan’s southern hub and as a symbolic point of connection with Afghanistan and South Asia.

The effectiveness of such a format will depend on whether it can move from general statements to the management of a project-based agenda. For this purpose, it would be advisable to structure the dialogue around four permanent tracks: transport and logistics, trade and standards, energy and climate, and investment and human capital. Each track should have a project map, progress indicators, responsible participants, and a mechanism for annual updates.

The participation of business is of particular importance. States can sign framework documents, but real demand for corridors is generated by exporters, importers, carriers, banks, insurance companies, terminal operators, and manufacturing enterprises. Therefore, within the framework of the Termez Dialogue, business sessions, B2B platforms, sectoral presentations, and discussions of specific barriers faced by companies are necessary.

The expert track should serve as an evidence base. It can prepare an annual report on the state of connectivity between Central and South Asia, a corridor-readiness index, monitoring of transportation time and costs, a review of regulatory barriers, analysis of investment projects, and recommendations for governments. In this area, Uzbekistan’s analytical institutions can play a leading role.

The Termez Dialogue is also important as an instrument for involving Afghanistan in economic processes on a pragmatic basis. This is not a matter of political legitimization, but of reducing economic isolation, developing transit procedures, supporting sustainable livelihoods, and creating incentives for stability. This logic corresponds to the interests of all participants, since Afghanistan’s economic predictability directly affects the cost and security of interregional routes.

10. Connectivity and the Sustainable Development Goals

Economic connectivity between Central and South Asia is directly linked to the UN Sustainable Development Goals. The development of energy networks supports SDG 7, the expansion of trade and employment corresponds to SDG 8, the construction of resilient infrastructure is linked to SDG 9, the reduction of spatial isolation contributes to SDG 10, climate resilience relates to SDG 13, and regional coordination and partnerships correspond to SDG 16 and SDG 17.

However, the link with the SDGs does not arise automatically. Infrastructure can promote development, but it can also deepen inequality if benefits accrue only to major actors while local communities bear the costs. Therefore, projects should include environmental assessment, social safeguards, consultations with the population, management of land-related issues, occupational safety measures, and transparent compensation mechanisms.

Special attention should be paid to women, youth, and small enterprises. New corridors create demand for services in logistics, trade, catering, repair, digital support, education, and tourism. If access to these opportunities is opened to local entrepreneurs, infrastructure will become a source of inclusive growth, not merely transit rent.

Climate risk is already becoming an economic factor. According to World Bank estimates, by 2030, nearly 90% of South Asia’s population may be exposed to intense heat, while more than one fifth of the population may face the risk of severe flooding. For Central Asia, the key constraint is water: in Uzbekistan, the volume of water withdrawal significantly exceeds internal renewable resources, and the current water deficit may increase to 7 billion m³ by 2030 and to 15 billion m³ by 2050^[9][10][11].

The climate dimension of connectivity is becoming increasingly important. South Asia and Central Asia are exposed to the risks of extreme weather events, glacier melt, droughts, floods, and tensions around water. Therefore, new roads, railways, power transmission lines, and logistics centers should be designed with long-term climate scenarios in mind. For the energy sector, this means combining electricity trade, energy efficiency, renewable sources, and grid resilience.

From the standpoint of sustainable development, the most promising model is not one of raw-material transit, but one of value-added creation. This implies agro-processing, industrial cooperation, service chains, digital trade, the localization of selected industries, and workforce training. In this case, connectivity is transformed from the movement of goods into a mechanism of structural modernization.

11. Conclusion

Economic connectivity between Central and South Asia is one of the key conditions for the sustainable development of the macroregion. It is capable of expanding sales markets, reducing transport isolation, strengthening energy security, supporting employment, and creating new incentives for regional stability. At the same time, the expected effect depends not on a single project, but on a coordinated package of measures.

The main practical conclusion is the need for a portfolio approach. The trans-Afghan railway, the route through Iran, road corridors, air connectivity, the CASA-1000 and TAPI energy projects, trade digitalization, logistics hubs, and investment platforms should be viewed as mutually complementary elements. Each of them has different implementation timelines, risks, and economic logic; therefore, the regional strategy should ensure redundancy and flexibility.

Uzbekistan has objective advantages for the role of a connector state. Its geography, demographic potential, industrial base, southern hub in Termez, and active foreign economic agenda make it possible to bring together the interests of Central and South Asia.

The Termez Dialogue can become a platform where political will is translated into project-level discipline. For this to happen, it should generate not only declarations, but also a list of projects, indicators, road maps, evaluation mechanisms, and permanent channels of interaction among business, experts, and government agencies.

In the long term, connectivity between Central and South Asia should be oriented not only toward increasing trade volumes, but also toward improving the quality of development. A sustainable macroregion will take shape where infrastructure is connected with institutions, energy with climate responsibility, trade with industrial cooperation, and diplomatic initiatives with evidence-based analysis and practical results.

Muhammad Babadjanov,

Head of Department

at The Institute for Macroeconomic and Regional Studies

under the Cabinet of Ministers of the Republic of Uzbekistan

[1] https://www.worldbank.org/en/programs/south-asia-regional-integration/trade

[2] https://data.worldbank.org/?locations=TJ-UZ-KZ-TM-KG

[3] https://data.worldbank.org/country/south-asia

[4] https://uzembassy.kz/en/article/the-mazar-i-sharif-kabul-peshawar-railway-will-open-up-broad-prospects-for-international-trade

[5] https://www.worldbank.org/en/country/afghanistan/brief/updated-q-a-on-casa-1000-resumption-in-afghanistan

[6] https://www.worldbank.org/en/news/press-release/2023/11/01/additional-financing-for-casa-1000-project-for-the-kyrgyz-republic

[7] https://www.carecprogram.org/uploads/03-CAREC-Transport-Strategy-2030-Midterm-Review-Draft-Report.pdf

[8] https://cpmm.carecprogram.org/2022-report/key-results/

[9] https://www.worldbank.org/en/news/press-release/2025/06/03/climate-resilience-in-south-asia-will-be-private-sector-led

[10] https://data.worldbank.org/country/uzbekistan

[11] https://www.adb.org/news/features/numbers-climate-change-central-asia

President of the Republic of Uzbekistan Shavkat Mirziyoyev met with World Bank Vice President for Europe and Central Asia Antonella Bassani on September 30.

The sides considered topical issues of further expansion of strategic cooperation with the World Bank Group and support of this leading international financial institution to the ongoing reform program in New Uzbekistan.

At the beginning of the meeting, Vice President Antonella Bassani conveyed to the head of our state sincere greetings and best wishes of World Bank President Ajay Bangui.

During the conversation, the current high level and fruitful nature of bilateral cooperation were noted with deep satisfaction.

In recent years, our country has become one of the largest partners of the Bank - the portfolio of projects has increased several times and now exceeds 12 billion dollars.

The World Bank supports the implementation of important reforms aimed at ensuring the sustainability of economic and social sectors. Since July this year, the Bank's regional office has been operating in Tashkent.

Such areas as poverty reduction, transformation of state-owned enterprises and banks, decarbonization, support for WTO accession and others have been identified as priorities for further expansion of the partnership.

Special attention was paid to the programs of urbanization and integrated development of regions, modernization of energy and irrigation infrastructure, support to the private sector.

There was also an exchange of views on the promotion of regional projects.

As the most important task of judicial reform being implemented in the Republic of Uzbekistan, important work is being carried out to ensure constitutional human rights and freedoms, strengthening the authority of the judiciary, which is considered an important guarantee of effective protection of human rights and to ensure the true independence of the courts.

Also, further expansion of the population’s access to justice within the framework of the principle “New Uzbekistan - New Court” requires accelerating the reform of the judicial system and introducing advanced international standards into the field. We can also observe confirmation of this in the corresponding positions of our state in the ratings of international organizations. Thus, according to the results of the Rule of Law Index ranking for 2022 (worldjusticeproject.org), Uzbekistan took 78th place out of 140 countries with an indicator of 0.50 points, of which 75th place in terms of civil justice and 65th in terms of criminal justice.

The fact that the update of the Constitution on the basis of generally recognized principles and norms of international law is enshrined in the preface of the updated Constitution of the Republic of Uzbekistan is a clear expression of recognition of the supremacy of generally recognized international law.

Article 15 of the Constitution determines that international treaties of the Republic of Uzbekistan, along with generally recognized principles and norms of international law, are an integral part of the legal system of Uzbekistan. According to part four of this article, if an international treaty of Uzbekistan establishes rules other than those provided for by the law of the Republic of Uzbekistan, then the rules of the international treaty of the Republic of Uzbekistan are applied.

Article 17 of the Constitution especially emphasizes that the Republic of Uzbekistan is a full-fledged subject of international relations; it is established that international law is based on generally accepted principles and norms. The application by courts of generally accepted principles and norms of international law is permitted in cases where existing laws contradict these international principles and norms.

Article 11 of the Constitution states that the system of state power of Uzbekistan, which is considered a full-fledged subject of international relations, is based on the principles of separation of powers into legislative, executive and judicial. It should be especially noted here that in accordance with Article 131 of Chapter XXIII, dedicated to the judiciary, the judicial system and the procedure for the activities of courts in the Republic of Uzbekistan are determined by law; the creation of emergency courts is not allowed.

In accordance with Article 1 of the law “On Courts” in the new edition (2021), the judicial power in Uzbekistan operates independently of the legislative, executive powers, political parties, and other public associations. Judicial power is exercised only by the courts. It was established that no other bodies or persons have the right to assign powers to the judiciary.

Article 2 of this law defines the judicial system, which consists of the Constitutional Court of the Republic of Uzbekistan; Supreme Court of the Republic of Uzbekistan; military courts; Courts of the Republic of Karakalpakstan, regional and Tashkent city courts; Administrative Court of the Republic of Karakalpakstan, administrative courts of regions and the city of Tashkent; interdistrict, district, city courts for civil cases; district and city courts for criminal cases; interdistrict, district, city economic courts; interdistrict administrative courts. It has been established that in the Republic of Uzbekistan specialization of judges by category of cases can be carried out, but the creation of emergency courts is not allowed.

As noted in Article 4 of this law, the main tasks of the court are to protect the rights and freedoms of citizens, state and public interests, rights and legally protected interests of legal entities and individuals guaranteed by the Constitution and other laws, international treaties of Uzbekistan, as well as international acts on human rights entrepreneurs. The activities of the court are aimed at ensuring the rule of law, social justice, civil peace and harmony, that is, it indicates that it is implemented in accordance with international agreements and international human rights instruments.

It is worth noting that in recent years, important documents have been adopted to ensure the compliance of the judicial system of our country with generally recognized international standards. These include such important historical documents as decrees of the President of the Republic of Uzbekistan “On measures to further reform the judicial and legal system, strengthen guarantees of reliable protection of the rights and freedoms of citizens” (2016), “On measures to radically improve the structure and increase efficiency of the judicial system of the Republic of Uzbekistan" (2017), "On measures to further improve the judicial system and increase confidence in the judiciary" (2020), "On measures to radically improve the system of financing the activities of the judiciary" (2021), decrees of the President of the Republic of Uzbekistan dated January 28, 2022 “On the development strategy of the new Uzbekistan for 2022 - 2026”, Decree of the President of the Republic of Uzbekistan dated January 16, 2023 “On additional measures to further expand access to justice and increase efficiency of the courts."

The Decree of the President of Uzbekistan dated January 16, 2023 “On additional measures to further expand access to justice and increase the efficiency of the courts” provides for:

in order to ensure the effective use of resources involved in the implementation of judicial activities, on the basis of advanced foreign experience, transfer the powers to consider certain categories of civil, economic and administrative offenses to the relevant administrative bodies:

determine the procedure for completing cases of certain categories of criminal, civil, economic and administrative offenses in lower courts;

What is relevant is that issues such as reconciliation of parties in civil and economic cases, development of reasonable proposals for the widespread introduction of the institution of mediation are raised.

It is appropriate to recognize here that the main idea and provisions of the “Universal Declaration of Human Rights” have found their full expression in the updated Constitution of the Republic of Uzbekistan, which is considered the basis of our national legislation.

It is known that the “Universal Declaration of Human Rights” consists of a preamble and a total of 30 articles, and if all its provisions are sequentially considered, then one can note the consistency and consistency of the content with the provisions of the Constitution of the Republic of Uzbekistan on human rights. For example, you can notice the similarity between the contents of Article 3 of the “Universal Declaration of Human Rights”, which reads: “Every person has the right to life, liberty and security of person” and Article 25 of the Constitution of the Republic of Uzbekistan: “The right to life is the inalienable right of every person and is protected by law. Encroachment on human life is a grave crime.”

Also, the rule that “no one shall be subjected to torture or cruel, inhuman or degrading treatment or punishment” in Article 5 of the Declaration corresponds to the second paragraph of Article 26 of the Constitution of the Republic of Uzbekistan “No one shall be subjected to torture, violence, other cruel, inhuman or degrading treatment or punishment." One may also note the reflection of the provision of Article 9 of the Declaration that no one shall be arrested, detained or persecuted without cause in the second paragraph of Article 29 of our Constitution “No one shall be subjected to arrest, detention, detention, detention or other restriction freedom except on the basis of the law" and in the third paragraph - "When detained, a person must be explained in a language he understands his rights and the grounds for detention"

Article 10 of the Declaration enshrines the right of every person to demand an independent and impartial court and its reflection in international legal acts to which the Republic of Uzbekistan has acceded inspires confidence that only an independent court can protect the rights of every citizen through an impartial and open consideration of the case in court. In this regard, it should be noted that the reforms carried out on the basis of the Action Strategy for the Development of the Republic of Uzbekistan for 2017-2021, put forward at the initiative of the President of Uzbekistan Shavkat Mirziyoyev, taking into account international standards, laid the foundation for democratization and liberalization of the judicial and legal sphere, ensuring genuine independence of the judiciary, protection of the rights and legitimate interests of citizens.

In order to improve the judicial system and ensure the independence of the courts, one of the important steps was the creation of the Supreme Judicial Council of the Republic of Uzbekistan, the Supreme Court and the Higher Economic Court were merged, the activities of the Supreme Court were improved, the Economic Courts were reorganized into economic courts, 71 inter-district, district (city) economic courts were empowered to hear cases in the first instance. The first term of work as a judge is five years, then ten years and an indefinite term. The powers of the courts to independently resolve their financial, logistical and technical issues were withdrawn from the judiciary and transferred to the Supreme Court, which led to the independence of the courts from the executive authorities and ensuring their independence. The institution of returning a criminal case to the court for additional investigation was abolished, thereby putting an end to unnecessary censorship, and people were spared unnecessary confusion and nervousness. It was strictly established that a person’s guilt in committing a crime should be based only on evidence proven in court, that is, it was strictly forbidden to make decisions based on rumors and assumptions. In order to fully ensure fair justice, verify the legality, validity and fairness of court decisions, an audit authority was created.

One of the important problems of the judicial reform system is the new system for training qualified and mature judges and judicial staff. Increasing the population's trust in judicial institutions by the Supreme Council of Judges, ensuring the stability of justice and the rule of law, serves to transform the court literally into a “Fortress of Justice” and improve the level of justice.

The introduction of the institution of a plea agreement and its implementation in the criminal procedural legislation of our country is also an important factor in increasing the protection of human rights, freedoms and legitimate interests recognized in international law.

In accordance with the Decree of the President of Uzbekistan dated January 28, 2022 “On the new development strategy of Uzbekistan for 2022-2026”, about 300 laws were adopted in 2017-2021, more than 4 thousand resolutions of the President of the Republic of Uzbekistan aimed at fundamental reforming all spheres of state and public life in five priority areas of development of our country.

Shavkat Mirziyoyev, in his report dated December 7, 2019, “The supremacy of the Constitution and laws is the most important criterion for a legal democratic state and civil society,” dedicated to the 27th anniversary of the adoption of the Constitution of the Republic of Uzbekistan, especially noted “ensuring the true independence of the courts is our highest priority. We must not allow the courts to be influenced by certain officials. In this regard, it is necessary to strengthen responsibility for interference in court cases or pressure on the court.”

The issue of ensuring compliance of the judicial system of Uzbekistan with generally accepted international standards will continue to remain relevant. In addition, practical measures are ongoing to harmonize national legislation with international legal standards in the field of human rights. After all, constitutional reforms today require an approach to constitutional norms, which are the main legal criterion that determines the value of a person in the life of our society, taking into account modern realities and international legal standards.

Ayub Muhammadiev, professor of the Department of Civil Law Sciences of the University of Public Security of the Republik of Uzbekistan, doctor of Law

Despite its limited access to the world's major ports, Uzbekistan can fully develop its transportation and logistics industry through the formation of land transport corridors, developing them throughout the Eurasian region. Being located in the center of the crossroads of trade routes during the Great Silk Road, Uzbekistan has a unique opportunity to become an important provider of logistics of cargo flows between China and Southern Europe, on the one hand, and the Indian Peninsula and CIS, Northern Europe, on the other hand.
Landlocked countries account for less than 1% of world exports. Moreover, the share of Central Asian countries in the global export of transport services is very small and is represented in the following proportions: Uzbekistan, which has access to the sea only through two countries – 0.1%, Kazakhstan – 0.3%, Tajikistan – 0.007%, Kyrgyzstan – 0.03%.
However, the transport complex of Uzbekistan maintains a dominant position in foreign trade in services and is one of the main sources of foreign currency inflow into the country. Transport services in the republic form 43% of the total volume of the country's service exports and 65% of the balance of foreign trade in services. Uzbekistan's transport service exports in 2022 amounted to $2.2 billion, and the positive balance of foreign trade in transport services amounted to $1.7 billion.


Figure 1. Uzbekistan’s share in global exports of transport services in 2022, %


Calculated according to UNCTAD and Statistics Agency of the Republic of Uzbekistan
One of the main problems of Uzbekistan's international freight transport is the underutilization of its export and transit potential, which reduces revenues from the export of transport and logistics services. For example, when comparing actual exports in tons, Uzbekistan is behind Russia by 20 times, Turkey by 10 times, and Kazakhstan by 9 times.
In 2023, the volume of interstate cargo transportation in the Republic of Uzbekistan amounted to 62 million tons, which is 16% higher than in 2022. The largest share in the volume of export-import cargo transportation of the republic falls on Kazakhstan (30%), to a lesser extent on Russia (26%), China (10%), and Afghanistan (4%). Rail transport accounts for the largest share (76%) of Uzbekistan's international cargo transportation (export, import, and transit). The export of transport services includes the transit of goods through the territory of Uzbekistan with a total share in the export of railway services of up to 45%.
The unrealized transit crossroads of Eurasia
One of the main global logistics trends is trade between China and the EU. According to the ERAI review, in 2023, the trade turnover between them amounted to 738 million euros, and according to EUROSTAT exceeded 104 million tons. In the current realities, rail transportation between Europe and China is carried out along the Eurasian route through the territories of Kazakhstan, Russia, Belarus; Mongolia and Russia (Naushki border crossing), as well as along the Trans-Caspian International Transport Route – TITR (Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, the Black Sea).
Part of the cargo flows that previously passed through the northern corridor has been redirected to TITR. However, the Eurasian route continues to occupy a leading position. In 2023, a total of 674 thousand TEU passed along this route, which is 1.1% less than in 2022 (681 thousand TEU), but at the same time, in the first half of 2024, the volume of container traffic by China-Europe trains along TITR increased by 12.8% with a volume of 196.6 thousand TEU.
As can be seen, Uzbekistan does not fit into the list of major transit countries between China and the EU in the "Eurasian" and "Trans-Caspian" directions and claims only a part of the target markets mainly in direction along the Southern Corridor through Turkmenistan, Iran, and Turkey.
So, a limited number of international transport corridors pass through the territory of Uzbekistan. The main countries forming the transit of Uzbekistan are neighboring Afghanistan, Kazakhstan, Tajikistan, and Kyrgyzstan, as well as Russia, which is considered an important trading partner for the Central Asian countries. The transport isolation of the region, undiversified transport routes, and limited export deliveries mainly in the northern direction lead to a loss of profit due to the sale of domestic goods mainly to neighboring countries at a fairly low cost.
Transit Priorities
To sell domestic products at competitive world prices, Uzbekistan needs to develop additional export trade routes to other countries, such as China, the Asia-Pacific region, the Middle East, India, Pakistan, and others. This requires competitive and efficient transport and transit corridors that allow for increasing the volume of transit cargo through the Republic of Uzbekistan.
Therefore, the priority directions identified by 2030 for the development of international transport corridors and bringing the volume of transit traffic through the territory of the republic to 16 million tons include the task of increasing revenues from the export of transport services. The key task in this case is to increase the volume of multimodal cargo transportation in the directions of China – Kyrgyzstan – Uzbekistan (Kashgar–Irkeshtam–Osh–Andijan–Tashkent) and Uzbekistan – Afghanistan – Pakistan (Termez – Hairatan – Logar – Karachi).
China - Kyrgyzstan - Uzbekistan. The volume of cargo transportation of the PRC with such countries as Turkey, Iran, Turkmenistan, Afghanistan, and Pakistan in 2023 amounted to almost 50 million tons, with the main volume of cargo transportation carried out by sea transport. Studies have shown that it is possible to attract part of the cargo to the "China–Kyrgyzstan–Uzbekistan" route, in the amount of about 10 million tons, and with the stable organization of cargo transportation along the route, the volume of cargo transportation by 2040 may increase by 4 times.
Uzbekistan – Afghanistan – Pakistan. The geographical proximity to Afghanistan, and further south to Pakistan and India, gives Uzbekistan the opportunity to unlock its existing potential and provide cargo transportation services in export, import, and transit traffic in the direction of South Asian countries (Afghanistan, Pakistan, and India), without competing for existing transport and trade corridors. Therefore, Uzbekistan is extremely interested in trade and transport cooperation with Afghanistan and in the implementation of the Trans-Afghan Railway project "Uzbekistan–Afghanistan–Pakistan." This road will allow establishing a direct rail link between Uzbekistan and Pakistan through the territory of Afghanistan with further access to the ports of the Indian Ocean.
The importance and effectiveness of the "Uzbekistan–Afghanistan–Pakistan" (UAP) project can be significantly increased if it is implemented in parallel with the project of building the "Uzbekistan – Kyrgyzstan – China" (CKU) railway line, which is the shortest way to connect China with Pakistan and India and will allow a multiple increase in the volume of traffic from/to China to the countries of Central and South Asia.
In this regard, within the framework of two strategic projects UAP and CKU, the ongoing activities on formation of new uninterrupted perspective multimodal transport corridors in the region are relevant. In November 2023 in Tashkent within the framework of the ECO Ministerial Meeting the Protocol of the multilateral meeting on establishment of the international multimodal route between Asia-Europe through “Uzbekistan-Turkmenistan-Iran-Türkiye”, was signed.

In November 2023, a Memorandum on mutual Understanding on the creation and development of international transport corridor “Belarus-Russia-Kazakhstan-Uzbekistan-Afghanistan-Pakistan” with access to the ports of the Indian Ocean was signed in Tashkent. In April of this year, Termez hosted meetings of transportation agencies and railway administrations of the countries-participants of this corridor, which resulted in the adoption of the Road Map, including the main activities for further development of the corridor.
It should be noted that the abovementioned documents are open for other interested countries to join the transport corridors.
Multifaceted Transport Policy
It should be noted that the policy of forming international transport corridors in Uzbekistan is somewhat different from the policies of several other countries and is aimed at attracting as many countries as possible to the active development of a branched network of transport corridors that ensure efficient foreign trade cargo transportation. As emphasized by the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, at the SCO Summit in Astana on July 4 of this year, "the multivariance of transport corridors is the most important condition for the sustainable development of our entire region."
However, the effective functioning of various corridor options is hindered by the lack of unified Cargo Transportation Rules, a unified Transport Document Standard that would be used on all types of transport, as well as the absence of digital platforms for providing customers with freight transportation services remotely from anywhere in the world. All this slows down the transport integration of Asian countries in the context of developing routes between Central and South Asia, and China, on the one hand, and the integration of Asian countries with European communications on the other.
To solve the problems of different legal and technical standards in freight transportation between European and Asian countries, which hinder the full-fledged transportation of goods without delays, it makes sense to develop new services for logistics and cargo transportation market participants, while applying modern technologies.
These include the production of universal wagons with variable gauge axle systems at the country's industrial facilities, with their further use both in Uzbekistan and southern countries, China and others, as well as the development of a digital platform for online registration of cargo transportation and transportation documents, which will lead to additional revenues from the export of transport services.
In this regard, the initiative of the President of Uzbekistan Shavkat Mirziyoyev, announced in June at the OTS Summit on the formation of a Council of Railway Administrations within the framework of the organization and the placement of its directorate in Tashkent, is relevant. The Council could act as a regulator for the integration of the railways of China, the Asia-Pacific region, South and Southeast Asia with the countries of Central Asia, the Caucasus, and the EU.
To assess the prospects for the coordinated development of transport corridors, a forecast of foreign trade volume was made based on an analysis of panel data using a combined model of two directions of international cargo transportation: China-EU and China-CA. The results of this forecast showed that by 2050, the volume of trade between China and the EU will increase by 4.5 times compared to 2023, and between China and CA - by 5 times. At the same time, the total volume of trade between South Asian countries (India and Pakistan) with trading partners (EU, Russia, China, Belarus, Kazakhstan, Uzbekistan, and Turkmenistan) will increase by 3.8 times compared to 2023.

In the near future, a clearly defined strategy for integrating Central Asian countries into the international transport network can help solve the region's problems and lead to an increase in the export of transport and logistics services and attract cargo flow, and later passenger flow, to the territory of the Asia-Pacific region, South and Central Asia. As the President of Uzbekistan Shavkat Mirziyoyev said: "We are open to cooperation and ready to become a reliable partner in creating new transport corridors and integration projects."

Dildora Ibragimova,
Center for the Study of Transport and Logistics Development Problems under the Ministry of Transport of the Republic of Uzbekistan

Uzbekistan-India relations are moving from historical affinity toward a practical partnership based on industrial cooperation, investment, technology and regional connectivity

The current stage of Uzbekistan-India relations can be described in one phrase: it is a time to turn historical affinity into practical partnership. The ties between the two peoples, linked for centuries through trade routes, science and culture, are now gaining new substance in investment, industry, technology, transport, pharmaceuticals, education and energy.

The upcoming visit of Indian Prime Minister Narendra Modi to Uzbekistan could give fresh momentum to this process. The significance lies not simply in another high-level meeting, but in the opportunity to translate political trust built over many years into tangible economic and technological outcomes. Uzbekistan and India established a strategic partnership in 2011. In the years since, regular dialogue between President Shavkat Mirziyoyev and Prime Minister Narendra Modi has brought continuity and consistency to this partnership.

From political trust to economic outcomes

Economic interest is one of the main drivers of bilateral relations today. According to India's Ministry of Commerce and Industry, bilateral trade has exceeded USD 1.5 billion. At the same time, both sides acknowledge that the existing potential is considerably greater and have set the goal of doubling trade over the next three years.

The new stage is not only about increasing trade volumes. What matters is raising the share of higher value-added products, expanding joint investment and production, and entering third-country markets together. The bilateral investment agreement signed in 2024 and brought into force in 2025 is also intended to strengthen legal guarantees for investors.

Mining, textiles, pharmaceuticals, agriculture and food processing, information technology and mechanical engineering are regarded as key growth areas for economic partnership. The interest of Indian businesses in hydropower, mining and infrastructure projects in Uzbekistan also shows that cooperation is taking on an increasingly practical character.

Industry and technology - new opportunities

Critical and rare-earth minerals have gained particular importance in recent discussions. Demand for these resources is rising as electronics, batteries, electric mobility and renewable energy develop. For Uzbekistan, the main interest is not to be limited to exporting raw materials, but to develop domestic value chains for deeper processing and the production of finished goods.

Pharmaceuticals and the digital economy are also natural areas of cooperation. India has extensive experience in medicines, medical technologies, information technology and digital services. For Uzbekistan, key priorities include establishing joint ventures, localising production, developing software products, supporting start-ups and training highly skilled professionals.

The two countries also share common interests in energy. Cooperation in solar and wind power, energy-efficient technologies, energy storage systems, water-saving solutions and cleaner production can link economic partnership more closely with sustainable development objectives.

Transport and human capital

The absence of a direct overland route between the two countries remains one of the main constraints on fully realizing their trade potential. For this reason, developing transport routes through Iran's Chabahar Port is of strategic importance. Yet an efficient corridor requires more than ports and railways: competitive tariffs, simplified customs procedures, mutual recognition of standards and digitalised logistics are also essential.

Human capital, meanwhile, forms the long-term foundation of the partnership. According to the Secretariat of the President of India, more than 3,000 civil servants, professionals and students from Uzbekistan have participated in India's technical and economic cooperation and scholarship programmes. At the same time, more than 16,000 Indian students are studying at higher education institutions in Uzbekistan. This potential can be further developed through joint research, engineering and IT programmes, and academic exchanges.

Security cooperation is another important pillar of the strategic partnership. In April 2026, the armed forces of Uzbekistan and India held the joint 'Dustlik' exercise in Namangan Region. Countering terrorism and extremism, supporting stability in Afghanistan and developing secure transport corridors are among the shared interests of Tashkent and Delhi.

The key measure of the new stage

Uzbekistan-India relations today rest on a solid political foundation. Trade is growing, the legal framework for investment has been strengthened, and new industrial and technological areas of cooperation are emerging. The central task now is to turn these opportunities into practical results.

In this context, the effectiveness of the upcoming high-level dialogue should not be measured solely by the number of documents signed. The key measure will be the extent to which agreements translate into new production capacities, investment projects, technologies, jobs, export markets and training programmes.

Uzbekistan lies at the heart of Central Asia, while India is one of South Asia's major economic and technological centres. A new stage in the Tashkent-Delhi strategic partnership therefore offers an opportunity to give historical friendship modern economic substance and to strengthen bridges of trade, technology and development between the two regions.

Jakhongir Isaev,
Head of Department, NGO Center for Sustainable Development

Digital cooperation between Uzbekistan and South Korea already runs through telecommunications manufacturing, e-government data centers, healthcare digitization, artificial intelligence, and education — infrastructure the Central Asia–Korea Summit puts a spotlight on, not one it creates

For Uzbekistan, digital transformation is not a single initiative but a declared national priority, and South Korea has become one of its most consistent partners in pursuing it. As Uzbekistan diversifies its economy and builds out its technology sector, cooperation with Korea reaches into nearly every layer of that effort — telecommunications infrastructure, government data systems, hospital diagnostics, and university classrooms among them.

That relationship is especially dense in information technology, a sector both governments have identified as central to the partnership. Korean companies build infrastructure and open offices inside Uzbekistan; Korean universities train Uzbek engineers; Uzbek IT firms increasingly sell services into the Korean market. High-level meetings between the two countries, including the Central Asia–Korea Summit, mark and reinforce this cooperation rather than create it the projects behind it were already underway.

Korean partners have already manufactured the fiber-optic cable running through part of Uzbekistan's telecommunications backbone, supplied the servers and storage behind its national e-government data center, and begun designing a joint digital government cooperation center for Tashkent. IT Park Uzbekistan opened a representative office in Seoul on October 30, 2024, under a newly formed Uzbek-Korean IT Business Alliance developed with the Korea Institute for International Industrial Cooperation — one visible marker of a relationship that is already several projects deep.

Institutional foundations

Uzbekistan's digital transformation has been driven by a series of structural reforms over the past several years: a dedicated ministry overseeing digital technologies, IT Park Uzbekistan as the country's flagship technology hub with resident-company incentives, and a national strategy for artificial intelligence from 14.10.2024 № RP-358. A national "Digital Government" program, adopted under Presidential Resolution PR-257 from 08.07.2026, set the framework for much of the e-government modernization described below. Two annual state awards — the President Tech Award and the President AI Award — recognize achievement in the sector.

Digital infrastructure and e-government

Uzbekistan's Unified Interactive State Services portal is the backbone of its e-government system and is currently being modernized with artificial intelligence tools, natural-language-processing chatbots, geospatial data integration, and proactive services that deliver documents and notifications to citizens automatically. The infrastructure behind this system was built with direct Korean participation: a project to expand the storage and processing infrastructure for the e-government system was financed with support from Korea's Economic Development Cooperation Fund (EDCF), combining concessional financing with tax and customs incentives from the Uzbek side. Following a tender, a major Korean IT company was selected as general contractor and delivered the data-center network infrastructure, servers, and storage systems, along with software for virtualization, cloud services, monitoring, and information-security incident management. A separate data-center project is planned for the Republic of Karakalpakstan.

IT industry and services export

IT Park Uzbekistan is the country's central vehicle for attracting foreign technology companies, offering resident status with tax and customs benefits. By the first half of 2026, 23 companies with Korean capital were registered as residents — up 53 percent from 15 in the first half of 2024, employing 126 specialists in software engineering, technical support, IT consulting, data processing, and business process outsourcing. Among them are LG CNS Uzbekistan, the ITOMAX Central Asia Development Center, and NOMADIAN. Over the same two-year period, the number of resident companies exporting IT services to South Korea doubled, from 12 to 25, and employment among those exporters rose from 145 to 285 specialists, a 97 percent increase. Sector-wide digital services exports reached $2,606,287 in 2025 and $716,970 in the first half of 2026 alone.

Manufacturing capacity has followed the software growth. Global Optical Communication Uzbekistan, a joint venture with South Korean sector partners, produces fiber-optic cable domestically, having manufactured 232,100 kilometers of cable worth 657.5 billion soums between 2022 and 2025, alongside localization of production and new job creation.

Where the cooperation runs deepest

The breadth of Uzbek-Korean digital cooperation is easiest to see sector by sector.

Government-to-government. Cooperation rests on agreements signed between the two countries' digital technology, internal affairs, security, science, and ICT authorities, alongside joint work within international telecommunication and postal bodies. The clearest expression of this is the planned Digital Government Cooperation Center, to open in Tashkent between 2026 and 2028 with Korea's Ministry of Interior and Safety (MOIS), which already cooperates with Uzbekistan on digital government development. Its mandate covers policy consulting, joint research, civil-servant training, and adapting Korean administrative-technology practice for Uzbek systems — including the modernization of the national services portal described above, an international digital-government forum, and a program to train digital-transformation leads inside individual government bodies. Civil-servant training is already running: Korea's LOGODI institute has been upskilling ten Uzbek officials a year, thirty in total so far.

Healthcare. With technical support from Korea's KOFIH (Korea Foundation for International Healthcare), Uzbekistan is digitizing its national screening system with UZINFOCOM, aiming at earlier disease detection and better monitoring. A separate project, backed by a Korean financial institution, is building a hospital information system integrating medical imaging, AI diagnostics, and electronic medical records, alongside staff training. A state technology integrator has signed a cooperation agreement with a Korean private technology company to bring Uzbek-developed digital solutions into the Korean and Southeast Asian markets — early discussions cover HR-management systems and biometric identification for government buildings.

Artificial intelligence. The two countries frame AI cooperation around complementary strengths: Korea brings a developed regulatory framework, a national data platform, prepared datasets, AI safety mechanisms, high-performance computing, and industrial AI experience; Uzbekistan brings an adopted national AI strategy, an emerging open-data system, and an institutional base for applying AI in public administration and the economy. The stated ambition is for Uzbekistan to pilot AI solutions in healthcare, education, and public services, then extend proven models across Central Asia — positioning Korean partners at the front of a regional rollout, not a single national market.

Education. The Tashkent branch of Inha University, operating since 2014, runs a 4+0 bachelor's program in computer engineering, a 3+1 program in business logistics, and a 1+1 MBA in digital transformation, with Korean-language instruction and robotics workshops; close to 670 students have studied in South Korea through its exchange programs, and ten top students go to Inha's home campus each year on Summer School grants. Tashkent University of Information Technologies hosted more than 80 Korean professors between 2018 and 2023, sent 63 students on exchange to South Korean universities, and is building a joint Business-IT program with a Korean partner university, alongside joint tracks in big data and AI, AI-driven fintech, and ICT engineering. Cyber University has moved quickly on Korean ties: KAIST faculty visited in October 2025, a December 2025 delegation to Konkuk University's GLOCAL campus produced an agreement on faculty exchange and joint research, and a separate industry partnership with a South Korean AI company covers applied research and student projects. Cheju-Halla University runs a joint program for a selected group of high-performing Uzbek students.

Government funding underpins much of this training pipeline. KOICA (the Korea International Cooperation Agency) is running a $14 million project to build out Uzbekistan's IT-education ecosystem, and in 2025 alone funded professional training for 45 civil servants at a cost of $450,000. Korea IT Academy co-runs the Uzbekistan Summer Camp together with Uzbekistan's Ministry of Digital Technologies, the Center for Digital Education Development, and School 21, alongside a dual-degree program with Uzbek partners. In total, Korean grants and investment for joint projects reached roughly $17 million in 2026 — about $14 million from KOICA and roughly $1 million each from Cheju-Halla University, Korea IT Academy, and MOIS — funding IT education, digital-government cooperation, workforce training, and youth innovation projects. Much of that training tracks Korean labor-market demand directly: software developers, AI engineers, data scientists, cybersecurity specialists, cloud and DevOps engineers, mobile and web developers, and GovTech specialists are among the roles Korean employers are seeking from this pipeline.

Alongside these institutional partnerships, the Ministry of Digital Technologies has expanded initiatives to bring more youth into STEM and IT careers.

Korean partners are not being asked to imagine a market. They are already inside Uzbekistan's infrastructure, hospitals, classrooms, and government data systems, with contracts and counterparts in place.

“Our cooperation with South Korea today reaches into nearly every layer of our digital economy — from the fiber-optic plant producing cable for our own telecommunications networks, to the data center that now stores the records of our national digital-government system, to the hospitals adopting Korean-backed diagnostic tools, and the classrooms where Korean professors and Korean grants train our students. Korean partners committed roughly $17 million to joint projects in the past year alone, spanning IT education, digital government, artificial intelligence, and workforce training. This is one of our most substantive technology partnerships, and we intend to deepen it further — through a joint digital government center, expanded AI cooperation, and a wider door for Korean companies into our market and the region beyond it.”

— Sherzod Shermatov, Minister of Digital Technologies of the Republic of Uzbekistan.

International positioning

Uzbekistan has been positioning itself as a regional hub for digital cooperation in Central Asia, a role reinforced by its hosting the International Olympiad in Informatics (IOI) in 2026. For Korean partners, this matters beyond Uzbekistan's own market: solutions piloted domestically are explicitly intended to extend across neighboring Central Asian countries once proven.

Over the next three to five years, the areas most likely to define Uzbek-Korean digital cooperation are the ones already carrying the heaviest institutional weight: the joint digital government center, continued data-center and healthcare-infrastructure financing, AI pilots in public administration and healthcare, and the education and grant pipelines feeding all of it. None of this depends on the outcome of any single meeting — it depends on scaling relationships that already have contracts, campuses, and funding behind them. For Korean partners, that is the signal worth reading: a market already under construction, not one still being pitched.

At a glance

• Korean-capital IT Park Uzbekistan residents grew from 15 (H1 2024) to 23 (H1 2026), +53 percent; resident companies exporting IT services to South Korea doubled, from 12 to 25, over the same period.
• Korean grants and investment for joint digital projects reached roughly $17 million in 2026, led by a $14 million KOICA project to build out Uzbekistan's IT-education ecosystem.
• A Korean IT company built Uzbekistan's e-government data center under EDCF financing; a joint Uzbek-Korean Digital Government Cooperation Center, developed with Korea's MOIS, is planned for Tashkent for 2026–2028.
• Global Optical Communication Uzbekistan, a joint venture with South Korean partners, produced 232,100 km of fiber-optic cable worth 657.5 billion soums between 2022 and 2025.
• Korean partners are engaged across healthcare digitization (KOFIH, hospital information systems), AI cooperation, and education (Inha University's Tashkent branch, TATU, Cyber University, Cheju-Halla University, Korea IT Academy).