Pakistan and Uzbekistan have agreed to work on bankable projects and a financing roadmap for the proposed Uzbekistan-Afghanistan-Pakistan (UAP) Railway, with the project aimed at strengthening connectivity between Central Asian markets and Pakistan’s seaports. The discussions focused on identifying financing sources, accelerating project preparation and establishing a clearer implementation framework for the railway link.
Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal held discussions with an Uzbek delegation led by Deputy Minister of Investment, Industry and Trade Ilzat Kasimov on the sidelines of the Central Asia Regional Economic Cooperation Programme conference in Mongolia. The meeting covered regional connectivity, investment and the mobilisation of international financing, with the proposed UAP Railway emerging as a key project for improving transport links between Central Asia and Pakistan.
During the discussions, Ahsan Iqbal called for the feasibility study of the proposed railway to be expedited and for potential sources of financing to be identified. He also emphasised the need for a clear implementation roadmap that can move the project beyond preliminary agreements toward defined development and financing arrangements. The focus on bankable projects is intended to provide a stronger basis for approaching international financial institutions and development partners.
The Pakistani minister also proposed the establishment of a Pakistan-Uzbekistan Joint Financing Coordination Mechanism. The proposed mechanism would allow both countries to jointly engage international financial institutions and development partners to mobilise financing for priority regional projects. Such coordination could provide a structured platform for identifying suitable financing sources and aligning investment requirements with project development plans.
Pakistan has described the UAP Railway as part of a broader economic corridor rather than an isolated railway infrastructure project. Ahsan Iqbal called for the proposed link to be developed as an integrated corridor connecting railways with highways, logistics facilities, ports and industrial centres. The approach would seek to connect landlocked Central Asian markets with Pakistan’s seaports while supporting the movement of goods and creating opportunities for commercial activity along the route.
The proposed railway is expected to provide an additional transport route for Central Asian countries seeking access to international markets through Pakistan. Improved rail and logistics connectivity could support the movement of goods toward Pakistani ports and potentially contribute to expanded trade between Pakistan and Central Asian economies. However, the development of the corridor would require progress on feasibility, financing, infrastructure planning and implementation arrangements before the proposed connectivity benefits can be realised.
The two sides also discussed opportunities to expand investment-led trade and joint ventures across several sectors, including textiles, pharmaceuticals, agriculture, minerals, engineering and information technology. These areas were discussed in the wider context of strengthening economic cooperation and creating opportunities for businesses in both countries to participate in cross-border investment and commercial activity.
Pakistan has been pursuing stronger economic engagement with Central Asian countries, with transport connectivity forming an important part of efforts to expand regional trade. The UAP Railway could form part of these connectivity efforts by linking Central Asian markets with Pakistan’s transport and port infrastructure. The project would also involve cooperation involving Afghanistan because of its position along the proposed railway route.
Both Pakistan and Uzbekistan agreed on the need to translate existing understandings and agreements into concrete projects supported by financing arrangements, implementation timelines and measurable economic outcomes. The latest discussions therefore place emphasis on preparing bankable projects and establishing financing mechanisms as the two countries continue work on the proposed UAP Railway and broader regional economic cooperation.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.