Azerbaijan, Pakistan explore new horizons to boost trade relations

In recent years, trade and economic relations between Azerbaijan and Pakistan have significantly advanced. Last year, key progress was made in the energy and tourism sectors, with new agreements on preferential trade and transit corridors further strengthening ties. The Azerbaijan-Pakistan business forum held on September 16 in Baku underscored the potential for deepening economic collaboration. But what drives this growth, and what steps are essential to enhance it? Moreover, how can the establishment of Chambers of Commerce between the two nations foster stronger business connections and long-term economic cooperation?

On his exclusive commentary Pakistani political analyst Imran Khalid shared his insights to Azernews. The analyst notes that the recent expansion in trade and economic connections between Azerbaijan and Pakistan is driven by several crucial factors. “Their close partnerships, involving aid diplomacy and cultural exchanges, have bolstered their bonds,” Khalid noted. “Collaboration agreements in the realm of economics within the Economic Cooperation Organization (ECO) have also been facilitating and nurturing trade since 1995.” Azerbaijan’s substantial energy resources in oil and gas position it as a critical trading ally for Pakistan, which relies heavily on oil imports. Additionally, Azerbaijan has shown an interest in Pakistan’s textile industry and agricultural goods. To further enhance this partnership, Khalid emphasized the importance of expanding trade agreements, investing in infrastructure, diversifying trade sectors, and encouraging joint ventures.

The establishment of Chambers of Commerce between Azerbaijan and Pakistan would significantly boost business relations and encourage sustainable economic cooperation. “These chambers can simplify trade procedures and lower hurdles while offering companies guidance and aid to access each other’s markets,” Khalid explained. Such initiatives could lead to increased trade activities and reciprocal investments. The Chambers of Commerce can host business gatherings, such as forums and trade expos, where entrepreneurs and companies from both nations can collaborate and explore partnership opportunities. “They offer resources like market studies and economic information to help businesses understand market trends and customer preferences,” Khalid added. Additionally, these chambers would represent businesses in discussions with government bodies, supporting policies that enhance trade relationships and promote investments. This could create a more favorable environment for businesses and remove obstacles to trade growth. The chambers might also provide training sessions and workshops to help companies improve their expertise and competitiveness, which is especially beneficial for enterprises looking to expand their reach. By fostering connections among businesses, the Chambers of Commerce can encourage exchange and understanding, potentially strengthening bilateral relationships and collaboration.