Tashkent, Uzbekistan (UzDaily.com) -- The initiated process of complementarity between the economies of Uzbekistan and Tajikistan stimulates the growth of trade and economic cooperation and ensures stable socio-economic development of both countries, Director of the Center for Economic Research and Reforms (CERR) Obid Khakimov said at an international scientific and practical conference with the participation of experts from Uzbekistan and Tajikistan.

On the eve of 2 June state visit of the President of Tajikistan to Uzbekistan, the International Institute of Central Asia (MICA) hosted an international scientific and practical conference on the topic “The role of the strategic partnership between Uzbekistan and Tajikistan in ensuring the sustainable development of Central Asia”.

More than 40 experts from the two countries took part in the conference. This event has become a platform for an open and constructive exchange of views between the expert-analytical and research communities of Uzbekistan and Tajikistan.

Director of CERR Obid Khakimov made a report at the plenary session.

In his speech, the head of the CERR emphasized that five years ago, relations between Uzbekistan and Tajikistan entered a new stage of their development, favorable conditions were created for the development and expansion of multifaceted cooperation.

“A new page in bilateral relations was opened by the mutual state visits of the Presidents of Uzbekistan Shavkat Mirziyoyev and Tajikistan Emomali Rahmon in 2018, which became a factor in expanding and deepening large-scale bilateral cooperation, including in the trade, economic and transport and communication spheres,” - he noted.

According to him, today, thanks to the political will and joint efforts of the Presidents of the two countries Shavkat Mirziyoyev and Emomali Rahmon, all previously reached agreements are being implemented in practice. At the same time, important steps are being taken to define and implement a strategy for the further development of relations.

Based on this, Obid Khakimov outlined several important points that determine the positive dynamics in bilateral economic cooperation.

“First, over the past five years, Uzbek-Tajik trade and economic relations have been developing steadily and growing rapidly. Tajikistan entered the top 10 trade and economic partners of Uzbekistan. The volume of bilateral trade from 2016 (US$196.8 million) to 2021 (US$605.5 million) increased by more than 3 times. This is the highest figure over the past 25 years of bilateral relations,” the expert stressed.

He noted that in 2021, trade turnover amounted to US$605.5 million (+22.6%): export - US$501.9 million (+23.6%), import - US$103.6 million (+17.8%).

For January-April 2022, trade between two nations made up US$187.7 million (+34.8%), of which: export - US$138.5 million (+13.8%), import - US$49.2 million (+ 2.8 times).

At the same time, speaking about the increase in these indicators, he noted the presence of all prerequisites and opportunities. Especially emphasizing, taking into account the free trade regime established between Uzbekistan and Tajikistan, the volume of mutual trade can be increased to US$1 billion.

“Second, the parties are actively implementing bilateral investment projects. At the moment, they amount to US$195.4 million (editor’s note determined in 2021),” said the director of the CERR.

According to him, the number of joint Uzbek-Tajik enterprises has increased significantly. Their activities cover trade, production of building materials, food industry and many other areas. It was noted that 219 enterprises with the participation of Tajik capital (119 joint ventures and 100 individual entrepreneurs) operate in Uzbekistan. There are 51 companies operating on the territory of the Republic of Tatarstan with the participation of residents of the Republic of Uzbekistan.

"Third. Strengthened industrial cooperation. An important role in this is played by the Uzbek-Tajik Investment Company with an authorized initial capital of US$50 million,” the expert noted.

He called the successful implementation of projects in this direction and the joint ventures “Artel Avesto Electronics” for the production of household appliances and “Talko-Krantas” for the assembly and adjustment of municipal and construction vehicles created on the initiative of the leaders of the countries on the territory of Tajikistan as a good example.

CERR specialists note that the expansion of cooperation ties between enterprises and the creation of joint ventures, taking into account the availability of large volumes of raw materials, for example, agricultural, will increase the competitiveness of manufactured products by attracting modern technologies and narrow specialization.

“Promising areas in this area can be sericulture, cocoon processing, production of silk fabrics, as well as the exchange of experience between designers. It is also possible to organize joint development of explored mineral deposits in Tajikistan. As you know, the Tajik side is interested in involving Uzbek business in the implementation of a number of projects,” the head of the CERR said.

“Fourth. Our countries, on the basis of mutual interests, rationally and effectively use their transport and transit capabilities. In turn, the favorable geographical position of Uzbekistan and the developed transport infrastructure allowed Tajikistan to diversify its access to foreign markets. Tajikistan received additional opportunities for the development of its economy, using a more developed communication network (railway, road and air) of Uzbekistan to export its goods to Russia and EU countries, and to transport goods from China to Uzbekistan,” O. Khakimov noted.

According to the expert, the full use of the common transport potential, as well as the activation of automobile routes, including through Tajikistan to China, will not only increase mutual trade, but also strengthen humanitarian ties at the interregional level. In this context, “the development of the transport corridor “Uzbekistan-Tajikistan-China” has good prerequisites.

The director of the CERR named the water and energy sector as another important area of cooperation.

Thus, the governments of the two countries signed an agreement on a feasibility study for the construction and operation of hydroelectric power plants in the Zarafshan River basin and the creation of a joint venture in the form of a joint-stock company.

It was noted that the hydroelectric power stations planned for construction will produce 1.4 billion kilowatt-hours of environmentally friendly electricity for the needs of our country. It also provides for the provision of electricity generated at these HPPs to other regions of Uzbekistan and Tajikistan on a parity basis.

In conclusion, the director of the CERR noted the presence of new realities that created all favorable opportunities for the further expansion of trade, economic, transport and communication ties between Uzbekistan and Tajikistan.

According to CERR specialists, the initiated process of complementarity of economies (supply of gas and fuel and lubricants to the Republic of Tatarstan from the Republic of Uzbekistan, supply of electricity from the Republic of Tajikistan to the Republic of Uzbekistan, etc.) will stimulate the growth of trade and economic cooperation and ensure stable socio-economic development of both countries.

Speaking about the cardinal changes that have taken place in Uzbek-Tajik relations, it was noted "the current meeting of the Presidents of Uzbekistan and Tajikistan opens up new prospects for the further development of mutually beneficial cooperation and will bring multifaceted interaction to a qualitatively new level, which will undoubtedly contribute to improving the well-being of the peoples of the two countries."