Baku, Islamabad explore new links for enhanced connectivity

As is well known, Azerbaijan and Pakistan share a rich tapestry of multifaceted relations that have evolved over time. Both nations are bound by a profound friendship, which has since been elevated to the level of a strategic partnership. This deep-rooted relationship is characterised by mutual support on both bilateral and multilateral platforms. The recent visit of Azerbaijani President Ilham Aliyev to Pakistan on July 11 exemplifies the expansion of these relations across various fields.

During President Ilham Aliyev’s visit, the escort of his aircraft by fighter jets from the Pakistan Air Force was a clear demonstration of the exceptional honour and respect accorded to him.

In recent years, the interactions between the leaders of Azerbaijan and Pakistan have intensified. For instance, President Ilham Aliyev and Pakistani Prime Minister Muhammad Shahbaz Sharif have met regularly at international events hosted or attended by Azerbaijan. Notably, President Aliyev engaged with Prime Minister Sharif at the last two summits of the Shanghai Cooperation Organisation. Additionally, Prime Minister Sharif visited Azerbaijan in June of the previous year.

Historically, Pakistan was among the first countries to recognise Azerbaijan’s state independence. Diplomatic relations between the two countries were established on June 9, 1992, and have since evolved into a robust strategic partnership. In March 1993, Pakistan established its embassy in Baku, and Azerbaijan followed by opening its embassy in Islamabad in August 1997.

It is also noteworthy that Pakistan has consistently supported Azerbaijan’s territorial integrity on the international stage and has refrained from establishing diplomatic relations with Armenia due to its military aggression against Azerbaijani territories. A significant milestone in this support was on April 30, 1993, when Pakistan presided over the UN Security Council meeting that adopted Resolution 822 concerning Azerbaijan.

A key aspect of the bilateral relationship is the ongoing development of new and more robust formats for cooperation. In this context, the trilateral meeting held on July 3 in Astana, featuring President Ilham Aliyev of Azerbaijan, Prime Minister Muhammad Shahbaz Sharif of Pakistan, and President Recep Tayyip Erdogan of Turkiye, was highly significant. The "SCO Plus" format of this meeting underscored a cooperative mechanism that aligns with the mutual interests of Azerbaijan, Pakistan, and Turkiye. The discussions at the meeting highlighted the importance of continued joint military exercises under the "Three Brothers" initiative and proposed regular joint training sessions for the armed forces of the three nations. Additionally, the creation of joint production ventures in the defence sector was discussed, indicating a potential deepening of military-political relations.

Economic relations between Azerbaijan and Pakistan began to take shape in October 1995 with the signing of the "Protocol on the Establishment of a Joint Commission at the Government Level between the Government of the Republic of Azerbaijan and the Government of the Islamic Republic of Pakistan" in Baku. Five years later, the first meeting of this Joint Commission was held.

In February 2017, an export mission from Azerbaijan visited Pakistan for a business trip, followed by the inaugural meeting of the Joint Working Group on Trade Cooperation between Azerbaijan and Pakistan in July of the same year in Baku. During this meeting, a "Memorandum of Understanding on Cooperation between the Azerbaijan Export and Investment Promotion Foundation and Pakistan’s Trade Development Authority" was signed. In April 2019, Baku hosted a trilateral exhibition featuring ten Pakistani companies at the Pakistan Pavilion.

Subsequent to this, a significant business forum was held in September 2019, which focused on sectors such as agriculture, energy, pharmaceuticals, trade, and construction, with over 150 business professionals participating. A Memorandum of Understanding was signed between the Azerbaijan Chamber of Commerce and Industry and the Pakistan Border Trade and Industry Chamber. Additionally, a Pakistani goods exhibition was organised in Baku in October 2019, followed by a pharmaceuticals exhibition in December. Since then, numerous ministerial and business-level visits have been conducted. In July 2023, a "Framework Agreement on the Purchase and Sale of LNG Cargoes between SOCAR Trading and Pakistan LNG Limited" was signed in Lahore with Prime Minister Muhammad Shahbaz Sharif.

Despite these developments, the level of economic and trade activity between Azerbaijan and Pakistan does not yet reflect the full potential of their bilateral relations. Nevertheless, there is substantial potential for further growth in this area. In 2023, the trade turnover between the two countries reached $27 million, with Pakistan expressing strong interest in Azerbaijani investments.

Currently, over 3,600 Pakistani companies are registered in Azerbaijan, engaging actively in various sectors including industry, agriculture, construction, trade, transportation, and services. Pakistani firms have also sought opportunities to participate in the reconstruction and restoration of liberated territories. Azerbaijan views the expansion of economic and trade relations with Pakistan as a priority. Following President Ilham Aliyev’s directive, the import duty on rice products from Pakistan has been unilaterally reduced from 15% to 0% until December 31, 2027.

Another important area of cooperation is transportation. Azerbaijan and Pakistan have opportunities for collaboration along the Middle Corridor, the North-South Corridor, and the East-West Corridor. In September 2022, AZAL commenced direct flights from Baku to Lahore, and in November, it began flights to Islamabad and the reverse route. In the previous year, the volume of transit cargo transported by road between the two countries reached 33,000 tons, reflecting a 53% increase from the previous period.

Given the ongoing strong cooperation, it is evident that Azerbaijan supports Pakistan’s stance on various international issues. Both countries coordinate their activities and provide unconditional support for each other across multiple international platforms. Their partnership spans numerous fields, including defence, energy, infrastructure projects, information technology, healthcare, pharmaceuticals, textiles, and the establishment of joint ventures. Additionally, the humanitarian and charitable initiatives led by the Heydar Aliyev Foundation in Pakistan further strengthen the bilateral relationship and contribute to the development of ties between the two nations.

The economic and trade relations between Azerbaijan and Pakistan represent a promising frontier for further development. While significant strides have been made through trade agreements, business forums, and joint ventures, there remains substantial potential for growth in this area. Both countries are well-positioned to build on their existing economic ties, explore new opportunities, and strengthen their partnership to achieve greater mutual prosperity in the coming years.

As Azerbaijan and Pakistan look to the future, their partnership is poised for continued growth and evolution. The foundation laid by past achievements, combined with ongoing and upcoming initiatives, sets a positive trajectory for deeper cooperation across a wide range of sectors. By embracing new opportunities and building on their shared interests, both countries are well-equipped to navigate future challenges and foster a mutually beneficial relationship for years to come.