Potential&opprt of trade in CAR&SA, 28Oct15

AlmatyOctober 2015

Trade and investment

opportunities of the Central Asian

Region, Afghanistan and

Pakistan

TIMUR NURATDINOVUSAID/REC

Potential and opportunities of Central Asia Region, Afghanistan and Pakistan

• Large market totaling 320 million population– Central Asia - 100 million; Afghanistan - 30 million; Pakistan

- 190 million• CAR offers cotton, energy, wheat, steel and iron, silk,

fruits, hides, mineral fuel• South Asia offers pharmaceutical products, fruits,

vegetables, clothe, footwear, rice, sugar, citrus• Trade complementarity • Through Central Asia further access to Eastern

Europe

Investment opportunities of Central Asian Region

• Diversification of capital in other countries• Possibility of transfer of certain part of production

facility to other country• Opening enterprises in other countries in order to

reduce expenses in production value chain or transportation/logistics

• Secure residence in other countries after making investments

• Access to market in Russia and Eastern Europe• Free economic zones in CAR

Trade experience of Central Asian Region with Afghanistan before 1990

High quality and strong demand for goods from former Soviet Union:

• Non-alloy steel and steel products• Construction materials• Oil products• Household articles• Cooking oil• Canned goods• Foodstuffs

Potential and opportunities of Afghan market

• Population: 31 million • Production: lack of production in large scale• Production cost: high• Past experience of trade relationship: positive• Transportation cost: relatively low• Security of business running: relatively positive• Infrastructure in the Northern Region: established• Economic and business center: Mazar-e-sharif

Afghanistan and Kazakhstan

Export• Marble and onyx (potential)• Carpet, rugs (potential)• Fresh fruits (potential): apples,

pomegranates, grapes, apricots• Vegetables: potatoes, onions

(during the off season)• Dried fruits and nuts• Precious and semi-precious

stones (potential)

Import• Wheat and flour• Metal bar• Oil products• Vegetable oil (potential)

Afghanistan and Kyrgyzstan

Export• Re-export of dried fruits and

fresh fruits (potential)• Precious and semi-precious

stones for cutting and polishing and further export to other countries (potential)

• Karakul for making coats, access to market in Kazakhstan and Russia (potential)

• Vegetables: potatoes, onions (during the off season)

Import• Red kidney beans• Canned products: jams,

pickled vegetables (potential)• Juices and non-alcoholic

beverages (potential)• Powdered milk (potential)• Meat products (potential)• Textile products: t-shirts,

jeans, women’s robes (potential)

Afghanistan and Uzbekistan

Export• Juice concentrate• Dried fruits (potential) for

processing in Uzbekistan and further re-export to other countries. Uzbekistan has well-developed processing facilities, which meet international standards.

• Vegetables: onions and potatoes (during off season)

Import• Beverages: juices,

mineral water, other beverages

• Pharmaceutical products • Textile products (potential)• Mineral fertilizers• Foodstuff • Construction material

(potential)• Canned products

(potential)

Afghanistan and Tajikistan

Export• Re-export of dried fruits

and fresh fruits (potential)

• Juice concentrate (potential)

• Vegetables: potatoes and onions (during off season)

Import• Dairy products (potential)• Canned agriculture products:

jams, pickled vegetables (potential)

• Juices and non-alcoholic beverages (potential)

• Textile products (potential): t-shirts, jeans, women’s robes

• Construction materials (potential)

• Electrical cables (potential)

Afghanistan and Turkmenistan

Export• Marble and onyx (white city

Ashgabat)• Juice• Fresh fruits: apples,

pomegranates, grapes, apricots (potential)

• Dried fruits and nuts (potential) : raisins, apricots, mulberry, almonds, walnuts

• Vegetables: onions and potatoes (during off season)

Import• Construction material

(potential)• Textile products (potential)

Investment opportunities of Pakistan

• Semi-industrialized economy: textiles, chemicals, food processing, agriculture and other industries

• Developed textile and pharmaceutical sectors • Experience in production of certified products• 95% of total freight trade – seaborne: major seaports

are Karachi, Muhammad Bin Qasim, and Gwadar

Pakistan and Kazakhstan

Export• Sugar• Leather• Pharmaceutical products• Vegetables• Textile products• Citrus

Import• Edible oil• Steel• Hides• Coal

Pakistan and Kyrgyzstan

Export• Sugar • Rice• Pharmaceutical products• Citrus• Textile products: fabrics

Import• Cotton• Beans• Hides• Milk powder• Meat products

Pakistan and Uzbekistan

Export• Sugar• Textile products: clothing• Pharmaceutical products• Vegetables: potato and onions• Citrus

Import• Cotton and cotton yarn• Hides• Silk• Coal• Fertilizer

Pakistan and Tajikistan

Export• Sugar• Rice• Pharmaceutical products• Vegetables: potato and

onion• Textile products: clothing

and fabrics• Citrus

Import• Cotton and cotton yarn• Dried fruits and nuts• Canned and processed fruits

and vegetables• Hides

Pakistan and Turkmenistan

Export• Sugar• Rice• Pharmaceutical products• Citrus• Vegetables: potato and

onion

Import• Cotton and cotton yarn

Potential joint ventures

• Marble processing facilities• Fruits processing facilities • Construction material facilities • Flour mill in Tajikistan• Milk powder in Kyrgyzstan• Precious and semi-precious stones facilities• Wholesale market at border in Uzbekistan

Existing obstacles and barriers

• Security • Transport/transit• Visa procedure• Direct flight/connection• Corruption• Other barriers

Recommendations

• Organizing exhibitions of goods and services

• Simplify visa issuance with support of Chambers

• Open a trade house or exhibition hall• Hold regular business to business

meetings (b2b)• Facilitate close coordination with

Chamber of Commerce in each country

Thank you! Questions?