ISLAMABAD: Pakistan’s exports to Azerbaijan have increased 11.1% per annum from US$932K in 1996 to US$11.6 million in 2020. During the year 2021, total exports to Azerbaijan were worth US$5.76 million and imports worth US$3.64 million.
In a discussion with WealthPK, Tajamul Hussain Sachal, public relations officer (PRO) for Sialkot Chamber of Commerce and Industry (SCCI), appreciated Pakistan’s strong trade ties with Azerbaijan.
“Bilateral trade with Azerbaijan has been going on for the last few decades. Azerbaijan is rich in oil and gas and can be the best alternative buying point for Pakistan. The Pakistani business community likes to do business there and a reasonable trade has been going on between the two countries. The Azeri market is full of potential and opportunities and it is very cooperative concerning visa processing, payments, investments, etc. But some issues are to be settled by the governments to ensure more ease for the trading community. Strong and stable diplomatic relations are badly needed to keep the trade smooth,’’ he said.
Tajamul said there were some irritants in the bilateral trade which must be removed at the government level. He said the trade route via Afghanistan was far shorter than the other routes but it could not be used due to the political instability there.
“If we adopt a long trade route that passes through many countries, it takes longer for the consignments to reach the desired destination due to the lengthy checking process and customs clearance. In the meantime, items having short shelf life perish causing huge losses to both the seller and the buyer.
We want one-window operation at the borders for quick customs clearance, checking and formalization of all other requirements. The consignments should reach their destinations without interruptions and delays once they are checked and cleared by the customs authorities at the borders. This will help facilitate trade and ensure delivery of perishable items to the required destinations,” the SCCI official said.
There are a lot of positive points that make Azerbaijan a favourite trade and business destination for Pakistan. For example, it ranks 34th out of 190 countries in the World Bank’s Ease of Doing Business Surveys of 2020. It also ranks 88th on the Human Development Index with a high rate of economic development and literacy and low rate of unemployment. –INP
Pakistan can import both crude and refined oil from Azerbaijan at reasonable rates. Also, it can be a good market for Pakistani products like iron, steel, food, natural juices, meat, and milk. Pakistan can also get the best opportunities quota for its skilled/unskilled manpower in Azerbaijan.
Although Pakistan and Azerbaijan are considered strategic partners, there is too much room for growth of bilateral economic cooperation. The two nations have signed many agreements related to tourism, business, trade, and strategic issues but still there is a need to reframe the bilateral socio-economic linkages according to modern trends.
As Azerbaijan is a lucrative trade and business destination for foreign investors, Pakistan must frame a tactful business policy to enhance its business relations with this landlocked Central Asian country. Regular trade visits and exhibitions must be organised to further strengthen the bilateral socio-economic relations.
