Pakistan Azerbaijan Economic and Social relations

(Dr.Mehboob Syed, Karachi)

Pakistan and Azerbaijan are two friendly and brother countries with immense potential of enhancing bilateral economic and trade relations, joint ventures, mutual cooperation in various fields and opportunities to invest in education, energy, human development. The two brotherly, friendly countries having long-lasting, historical relations, sharing common goals, issues and striving for durable peace, development , cooperation , harmony and having the strong pledge to eradicate terrorism, extremis, discrimination on the basis of universal brotherhood.

Azerbaijan is a country in the south Caucasus region of Eurasia at the crossroads of Eastern Europe and West Asia. It is abandoned by Caspian sea to the east , Russia to the north, Georgia to the northwest , Armenia to the west and has an 11 km long border with Turkey in the northwest. It has diplomatic relations with 158 countries and holds membership in 38 international organizations including UNO, The council of Europe, The OSCE, NATO partnership for peace programme, . it is one of the founding members of GUAM, The Common wealth of Independent States ( CIS) . Azerbaijan has a high level of human development index (HDI). It also has a high rate of economic development and literacy.

The visit of President of Pakistan Dr Alvi to Baku in 2019 played a pivotal role to bring the both countries further closer. Before this visit, the meeting of President Dr. Arif Alvi with Ambassador of Azerbaijan Ali Fikrat Oglu Alizada on June 25, 2019 in Islamabad was also an important development when he passed invitation of President of Ilham Aliyev to President Dr Alvi. In this meeting, President Alvi lauded bilateral relations between Pakistan and Azerbaijan and stated that bilateral trade is also increasing and thousands of tourists from Pakistan are travelling to brotherly country of Azerbaijan. President Alvi highly appreciated proactive role of Ambassador of Azerbaijan Ali Fikrat Oglu Alizada for his constant work for further cementing the bilateral relations between the two countries.

On October 28, 2019, while giving interview to Azerbaijani media in Baku, President Alvi reiterated his stance that bilateral relationship of Azerbaijan and Pakistan has (had) great importance for Pakistan. He strongly appreciated the support of the Azerbaijan government and people on Kashmir cause. On September 23, 2019, Foreign Minister of Pakistan Shah Mahmoud Qurashi while speaking at OIC contact group meeting at sideline of UNGA said that world must put pressure on Armenia to vacate Azerbaijani areas and stop aggression over Azerbaijani nation. There is great potential to enhance military relations between Pakistan and Azerbaijan . Pakistan has one of the best armed forces equipped with excellent professional training, equipment and unmatched patriotism and can play vital role in enhancement of capability and capacity of Azerbaijan forces which are facing threat from aggressive designs of its neighbor.

Pakistan and Azerbaijan has great potential to enhance their bilateral trade relations. The two countries can kick off energy cooperation, and Azerbaijan can help Pakistan to meet its energy requirements. Apart from energy sector there is also chance for Pakistan to export some of its agriculture products and fruits and can import some agro commodities from Azerbaijan. Pakistan also can offer it surgical instruments to Azerbaijan.

Economy of Azerbaijan
Key Economic Indicators
2015 2016 2017 2018 2019
GDP ( US$ Billion) 50.8 37.8 40.7 45.6 45.2
GDP per capita US$ 5,300 3,895 4,149 4,587 4,498
Growth rate of GDP % 0.6 -3.1 0.1 1.3 3.4
Inflation 4.1 12.6 13.0 3.5 2.5
Exports (US$ billion) 11.3 9.1 13.8 20.1 20.3
Imports ( US$ billion) 9.2 8.5 8.8 9.4 10.0
Major Export countries:
Italy : 32%
Turkey : 10%
Israel : 4.6%
Pakistan : 0.004%
Major Import Countries
Russia : 16.8 %
Turkey : 15%
China : 11%
Pakistan : 0.15 %

Pakistan Azerbaijan Bilateral Trade Statistics ( US$ million)

Year Export Import Total trade Balance of Trade Total export of Pakistan % share in Total exports Total imports of Pakistan % share in total imports
2014 27.7 0.1 27.8 27.5 25,109.6 0.1 45,073.0 0.0003
2015 42.2 0.0 42.2 42.2 23,667.3 0.2 45,826.1 0.001
2016 61.3 0.2 61.4 61.1 29,786.5 0.3 44,684.8 0.0003
2017 12.6 1.7 14.3 10.8 20,422.2 0.1 52,910.0 0.003
2018 14.0 0.9 14.9 13.2 23,222 0.1 60,867.4 0.001
2019 15.6 0.5 16.00 15.1 23,958.3 0.1 54,762.9 0.001

Azerbaijan has shown interest in Pakistan’s LNG sector and has planned to invest through state oil company of Azerbaijan ( SOCAR) . There is a need to form Pakistan Azerbaijan Joint Chamber of Commerce which would pave the way for further enhancement of bilateral trade and investment and would bring the business communities of two brotherly closer. The construction sector of Azerbaijan is the fastest growing area and Pakistan can export its cement to Azerbaijan. Pakistan’s fruit specially mango can attract Azerbaijani people and its basmati rice would be an addition of delicious food to further enhance Azerbaijani hospitality.

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