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.
Pakistan and Uzbekistan signed on Friday a $1 billion deal to increase bilateral trade, a statement from Pakistan’s Ministry of Economic Affairs said. pic.twitter.com/4VYTWKcmNw
— Economy.pk (@pk_economy) February 24, 2023
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.
The IGC aimed at increasing econ. diversification, sustainable growth, building supply chain resilience & robust regulatory environment. It also recognized the importance of closer collaboration to bring sustainable development through technology, innovation & eco. partnership pic.twitter.com/xcsZE8jfCw
— Economic Affairs Division, Government of Pakistan (@eadgop) February 24, 2023
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.