ISLAMABAD: Prime Minister Shehbaz Sharif’s upcoming visit to Azerbaijan is expected to significantly enhance bilateral trade and open doors for economic cooperation in various sectors, say economic experts. With the global economic landscape shifting, they emphasize that this is the perfect time for both countries to strengthen their trade relations.
For the fiscal year 2024, the total trade volume between Pakistan and Azerbaijan stands at $5.96 million, with Pakistan’s exports to Azerbaijan valued at $5.93 million and imports from Azerbaijan at just $0.03 million.
Dr. Mehmoodul Hassan Khan, an eminent economic strategist and regional expert, stated that the signing of various Memorandums of Understanding (MoUs) and agreements during the visit will promote cooperation in key areas such as trade, energy, tourism, and education. One significant agreement includes a partnership between the State Oil Company of Azerbaijan Republic (SOCAR) and Pakistan’s Frontier Works Organisation (FWO) and Pakistan State Oil (PSO) to collaborate on the Machike-Thalian-Taru Jabba White Oil Pipeline Project. This project holds immense strategic value for both countries, addressing Pakistan’s energy deficits while providing geopolitical and socio-economic benefits.
“Pakistan is in need of a stable energy supply, and these agreements will go a long way in meeting our energy needs, which have long plagued our industries and society. Additionally, MoUs in security, defense, education, and tourism will enhance bilateral trade and solidify mutual business interests,” Khan added.
Khan also noted that several Pakistani IT firms, startups, and businesses in the ICT sector have shown growing confidence in investing in Azerbaijan, particularly in the newly liberated areas of Karabakh. This highlights the secure and promising business environment that Azerbaijan offers to foreign investors.
Pakistani investors have also established textile units, pharmaceutical companies, and sports businesses in Azerbaijan, further indicating a thriving and investment-friendly atmosphere for entrepreneurs.
The prime minister’s focus on economic diplomacy is showing positive results, with recent agreements aimed at increasing bilateral trade to $2 billion. This reflects the growing mutual trust and cooperation between the two nations. Khan pointed out that during Pakistan’s economic hardships, Azerbaijan had provided oil and gas on deferred payments, helping Pakistan manage its current account deficits.
Furthermore, the construction of the Zangezur Corridor is expected to offer Pakistan a significant advantage in exporting goods to Eastern Europe once completed, further boosting trade relations.
Khan emphasized that Azerbaijan’s President Ilham Aliyev’s geo-economic vision has led to remarkable progress in the country’s macro-economy, industrial capacity, human capital development, and renewable energy initiatives. This development provides an excellent opportunity for Pakistan to collaborate with Azerbaijan to achieve greater socio-economic integration.
Muhammad Farooq Shaikhani, former president of the Hyderabad Chamber of Small Traders and Small Industry, emphasized that Pakistani businesses can take full advantage of the MoUs signed with Azerbaijan to drive economic growth. However, he also called on Pakistan to focus on utilizing its own natural resources, such as coal, minerals, and renewable energy, to ensure sustainable economic growth and reduce dependency on foreign investments.
By strengthening local industries and focusing on indigenous energy solutions, Pakistan can create job opportunities, increase self-sufficiency, and build a resilient economy.
