Azerbaijan’s President Ilham Aliyev and his Pakistani counterpart Asif Ali Zardari have committed to strengthening economic and trade relations between their countries during a recent meeting in Islamabad.
The leaders praised the strong political ties between their countries, with a special emphasis on constant support to each other, especially Pakistan’s unwavering support for Azerbaijan during thirty-year-long occupation of its territories by Armenia. This mutual support, grounded in international law, has solidified their strategic partnership, according to the official statement issued by the official website of the Azerbaijani president.
A key focus of the discussion was the significant potential for enhancing economic and trade relations between the two countries. Both presidents underscored the promising opportunities for increased investment cooperation, aiming to further fortify their economic connections.
The meeting concluded with a broad exchange of views on various issues of mutual interest, reaffirming the dedication of both nations to deepening their cooperation and fostering shared prosperity.
During his two-day visit to Pakistan, President Aliyev also met with Prime Minister Muhammad Shehbaz Sharif.
Key topics of their discussion included plans to boost bilateral trade, currently valued at under $100 million, to new heights through investments totaling $2 billion.
“We have discussed an initial figure of $2 billion dollars in investments in areas of mutually beneficial projects,” Sharif stated in his press remarks, expressing expectations for significant potential to increase these investments to billions of dollars in the coming years.
President Aliyev, in turn, noted that several projects have already been reviewed in areas such as energy, infrastructure, connectivity, and defense industry, where successful cooperation is currently underway.
“So, we will build a strong partnership not only on a political level, which we already have, but also on an economic level – trade, investments,” he said.
During their discussions, Muhammad Shehbaz Sharif also thanked Azerbaijan for supporting Pakistan on the Kashmir issue, emphasizing Azerbaijan’s consistent stance on Kashmir’s right to self-determination. On his part, President Ilham Aliyev acknowledged Pakistan’s strong political support during Azerbaijan’s conflict with Armenia over Azerbaijan’s Karabakh region, highlighting Pakistan’s decision not to establish diplomatic relations with Armenia due to its occupation of Azerbaijani territories.
Azerbaijan and Pakistan have also strengthened their bilateral relations with the signing of 15 documents during a ceremony attended by President Aliyev and Prime Minister Sharif in Islamabad. The agreements cover crucial areas such as consular affairs, transit and preferential trade, privatization of state property, legal cooperation, mineral resources and geology, cultural exchange for 2024-2029, information and communication technologies, broadcasting, tourism, air services, twinning links between the city of Baku and the city of Islamabad, small and medium enterprises development, scientific and technological cooperation, and literature and science.
Over the past three years, Azerbaijan and Pakistan have significantly strengthened their trade and economic relations. In 2020, bilateral trade between the two countries amounted to $13.283 million. In 2022, this figure more than doubled, exceeding $28.1 million, with the total bilateral volume surpassing $100 million in 2023.
Pakistan, facing a chronic gas shortage exacerbated by high oil prices, has benefited from intergovernmental energy agreements signed with Azerbaijan in June 2023. Under these agreements, SOCAR Trading supplies liquefied natural gas (LNG) at preferential prices to Pakistan LNG Ltd, providing crucial relief to the country's energy crisis with a 30% price discount.
Looking ahead, Azerbaijan plans to export rolled products and other products of non-ferrous metallurgy, instrumentation, power equipment, optical and power cables, construction materials, and other goods to Pakistan. Conversely, Pakistan aims to expand exports to Azerbaijan, including cotton fabrics, clothing, synthetic color dyes, polyvinyl chloride (PVC), car tires, medicines, tropical fruits, and rice.
Both countries are committed to accelerating the development of necessary legal frameworks for trade and enhancing transport corridors. Pakistan has initiated a comprehensive strategy development to strengthen economic cooperation and trade-transport partnerships with Azerbaijan, with a focus on integrating its freight forwarders and carriers into the Middle Corridor opportunities.
Furthermore, Baku and Islamabad aim to deepen collaboration through joint ventures, particularly in light industries like garment and textile manufacturing, as well as pharmaceuticals. They plan to export jointly manufactured goods to neighboring markets, marking a significant step forward in their economic partnership.
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