PM’s Azerbaijan visit to strengthen trade ties
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KARACHI:
To drive economic growth, Prime Minister Shehbaz Sharif’s visit to Azerbaijan bodes well for exploring and boosting bilateral trade ties in various sectors, economic nationalists said.
Speaking to , they stressed that now is the right time to enhance trade as the global economic order shifts. The overall trade volume between the two countries stands at $5.96 million for the fiscal year 2024, with Pakistan’s exports to Azerbaijan valued at $5.93 million and imports from Azerbaijan at $0.03 million.
Eminent economic strategist and regional expert Dr Mehmoodul Hassan Khan stated that the signing of multiple Memorandums of Understanding (MoUs) and agreements will foster bilateral cooperation in diverse sectors, particularly trade, energy, tourism, and education. One of the key agreements includes an MoU between the State Oil Company of Azerbaijan Republic (SOCAR) and Pakistan’s Frontier Works Organisation (FWO) and Pakistan State Oil (PSO) for collaboration on the Machike-Thalian-Taru Jabba White Oil Pipeline Project, which holds great socio-economic, geopolitical, and geostrategic significance for both countries.
“Pakistan requires a stable and smooth supply of energy, oil, and gas, and these MoUs will help fulfil its energy deficit, which has been haunting its industries and society. Furthermore, MoUs on security, defence, education, and tourism will strengthen bilateral trade, and mutual business activities will also be further consolidated,” he said.
He highlighted that an array of Pakistani IT, Information and Communication Technology (ICT), and startups are currently working in liberated areas of Karabakh, reflecting their confidence and readiness to invest in various parts of Azerbaijan.
Several textile units, pharmaceutical companies, and sports businesses have been established by Pakistani investors, indicating a secure and promising environment for Pakistani entrepreneurs in Azerbaijan.
Khan noted that the prime minister’s rigorous economic diplomacy is now yielding dividends, as a recent agreement to boost bilateral trade up to $2 billion demonstrates increasing mutual trust, economic cooperation, and industrial development.
“In our economic hardship, the government of Azerbaijan provided us with oil and gas on deferred payments, granting us a strategic financial cushion to manage our current account deficits. The construction of the Zangezur Corridor will also provide Pakistan a comparative advantage in exporting goods to Eastern Europe upon completion,” he added.
He further stated that bilateral relations between Pakistan and Azerbaijan are gaining momentum, leading to improved trade volumes. Additionally, Azerbaijan President Ilham Aliyev’s geo-economic vision has successfully transformed Azerbaijan’s macro-economy, industry, manufacturing capacity, human capital, and renewable energy development, providing Pakistan with an opportunity to collaborate for greater socio-economic integration.
Hyderabad Chamber of Small Traders and Small Industry’s former president, Muhammad Farooq Shaikhani, said that Pakistani businesspeople can leverage bilateral MoUs to drive economic growth.
He stressed that while exploring and enhancing trade ties with Azerbaijan is beneficial, Pakistan should also prioritise utilising its abundant natural resources, including coal, minerals, and renewable energy, to drive sustainable economic growth and reduce reliance on foreign investments.
By strengthening local industries and promoting indigenous energy solutions, Pakistan can create employment opportunities, enhance self-sufficiency, and build a resilient economy.
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