Another round of investment by Uzbekistan after China and Iran for Pakistan | Business Upturn

Another round of investment by Uzbekistan after China and Iran for Pakistan

Pakistan and Uzbekistan have signed an agreement to boost the trade of goods and services.

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Pakistan is still grappling with its economic crisis for almost a decade but now its Foreign Exchange Reserves have hit the lowest in the last 10 years. To support the country in its hardest time, three countries have come forward to provide aid. After China and Iran, Uzbekistan sealed a deal to fund $1 billion for boosting the trade of goods and services with the crisis hit the country.

This deal was signed at the 8th  Pakistan-Uzbekistan Inter-governmental Commission on Trade-Economic and Scientific-Technical Cooperation (IGC) meeting held in Tashkent on February 25, 2023.

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The meeting covered several agendas that can improve Pakistan’s existing conditions. According to reports the two parties discussed economic cooperation in various sectors, like commerce and trade, banking, industries and production, investment, textile industry, energy, oil and natural resources, transportation and communication, agriculture and tourism, and culture development.

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Any investment for the country will a relief as it has already increased sales tax to 25% on luxury goods, and directed the ministers and advisers to cut down their perks and expenses. The country has also raised the prices of fuel, and essential commodities, making it difficult for common people to fulfill their necessities.

Inflation in Pakistan recorded a new high as it soared to 41.54% on a year-on-year basis for the week ended on February 23, 2023, following a continued hike in prices of essential commodities.