The trade turnover between the countries of Central and South Asia has the potential for expansion, said analysts from the Eurasian Development Bank (EDB), who presented the report "The Economy of Central Asia: A New Look".
At the same time, they noted that for the Central Asian region, trade with the south is still only 2.5%, Ritmeurasia reports.
"The Central Asian countries see prospects for increasing export deliveries to South Asia, in particular oil and gas, and are also interested in increasing the range of imported products, primarily equipment and consumer goods," the report says.
Geographically, the region is close to India, Pakistan and other countries of South Asia. However, the development of trade with them is constrained by the lack of direct transport routes, economists say.
"The development of the North-South International Transport Corridor and transport routes through Afghanistan to Iran and Pakistan will facilitate the entry of goods from Central Asian countries both to the markets of South Asia and to the world market through the infrastructure of the Persian Gulf seaports," the study says.
As an example, bank analysts cite Uzbekistan, which has stepped up trade with South Asia this year. For the first time, the republic imported meat from Pakistan, and also began to study the possibilities of importing Pakistani wheat, EDB economists specify.
Uzbekistan also aims to expand trade with India, which was discussed by representatives of the two countries at the Samarkand SCO summit.
As for traditional economic partners, their list will not change, the EDB notes.
"The well-being of the region will largely be associated with setting up a format of economic cooperation with China and Russia that is beneficial for the Central Asian states and using transit opportunities.
Other world economic centers will influence the region to a lesser extent," the report says.
According to the EDB, last year the share of trade turnover between Central Asian countries with Russia was 21.6%, and with China - 20.4%.
The favorable location of the Central Asian countries at the junction of transport corridors between these two states increases their potential for the development of transit routes - both for the transport of goods and for participation in cross-border production chains.
CentralasianLIGHT.org
Nov. 11, 2022