Afghanistan becomes key trading partner for Uzbekistan

In the first half of 2024, Afghanistan solidified its position as a key trading partner for Uzbekistan, with the total trade volume reaching approximately $461.4mn. This figure comprises $448.3mn in exports from Uzbekistan to Afghanistan and $13.1mn in imports from Afghanistan. Compared to the same period in 2023, this represents a substantial 24.5% increase in total trade volume, which was $370.7 mn.

Examining the export dynamics reveals a positive trend over the past three years. In the first half of 2022, Uzbekistan’s exports to Afghanistan were valued at $364.4mn. By the first half of 2023, exports had increased to $368.5mn, reflecting a growth of approximately 1.1% from 2022. The upward trajectory continued into 2024, with exports reaching $448.3mn, marking a 21.7% rise from 2023 and a significant 23.1% increase from 2022. This steady growth underscores the expanding market for Uzbek goods in Afghanistan and the strengthening of economic ties between the two nations.

Imports from Afghanistan to Uzbekistan also show a notable upward trend. In the first half of 2022, imports were relatively modest at $4.4 mn. This amount decreased to $3.3mn in the first half of 2023, indicating a 22.7% decline and following with a dramatic increase to $13.1mn, marking a substantial 296.4% increase. Imports surged from $4.4mn to $13.1mn, resulting in a dramatic 198.8% rise. This dramatic rise highlights the growing diversification of Uzbekistan’s sources of goods and the deepening trade relationship.

Regarding Afghanistan’s share in Uzbekistan’s total foreign trade, it accounted for 1.3% in 2023. This share increased to 1.4% in 2024. This increase in the share of foreign trade emphasizes Afghanistan’s growing importance as a trade partner and its contribution to Uzbekistan’s trade balance.

The rise in exports from Uzbekistan to Afghanistan is likely driven by a variety of sectors, including textiles, machinery and equipment, and agricultural products. Meanwhile, the increase in imports from Afghanistan suggests a diversification of Uzbekistan’s import sources, potentially including raw materials or specific goods necessary for its industrial sectors.

In 2022, Afghanistan exported $1.26mn worth of goods to Uzbekistan, predominantly raw cotton, other nuts, and dried fruits. This marked a decline from $1.52mn in 2017, reflecting an annualized decrease of 3.69%. Conversely, Uzbekistan's exports to Afghanistan in 2022 reached $873mn, showcasing an increase from $366mn in 2017. This growth, at an annualized rate of 19%, highlights the expanding trade relationship between the two countries.

In 2022, Afghanistan's top exports to Uzbekistan included raw cotton, other nuts, and dried fruits, while Uzbekistan's primary exports to Afghanistan were wheat flours, electricity, and refined petroleum. 

In July, the Uzbekistan-Afghanistan Business Forum was held and it was a notable event that brought together top officials, industry leaders, and over 1,000 business representatives from both countries. Uzbekistan's exports to Afghanistan are currently ranked fifth, with trade volumes showing a steady increase over the past five years, reaching $866mn by 2023.

 

All information taken from www.daryo.uz