Khalid Taimur Akram, Executive Director of Pakistan Research Center for a Community with Shared Future (PRCCSF), was interviewed by AZERTAC.

- On July 11-12, President Ilham Aliyev paid a visit to Pakistan. How do you assess the results of this visit and how will it affect the development of economic relations between the countries?

- President Ilham Aliyev’s visit to Pakistan on July 11-12, 2024, marked a significant milestone in strengthening bilateral ties. The signing of key agreements on trade, technology, and tourism aimed to boost economic collaboration and cooperation. The commitment to enhance bilateral investment to $2 billion highlights the potential for substantial mutual growth. This visit encourages technological exchange and promote tourism, fostering a robust economic partnership between Azerbaijan and Pakistan.

- How do you assess the current level of economic relations between Baku and Islamabad?

-The current level of economic relations between Baku and Islamabad is robust and rapidly growing. The trade turnover between Azerbaijan and Pakistan has demonstrated impressive growth, more than doubling from $13.283 million in 2020 to over $28.1 million in 2022, and surpassing $100 million in 2023. The decision to implement special regulations for Pakistani rice reflects the commitment to intensifying bilateral trade cooperation. With the completion of the Preferential Trade Agreement and the Transit Trade Agreement, both countries are further liberalizing and expanding their trade. Optimistically, this figure is expected to exceed $30 million in the next 2-3 years, indicating strong future prospects for economic collaboration.

- During President Ilham Aliyev’s visit to Pakistan, several important agreements and memorandums of understanding were signed. How will they affect the level of development of relations between our countries?

- During President Ilham Aliyev’s visit to Pakistan, 15 important agreements and MoUs were signed across various sectors, including trade, tourism, science and technology, and cultural exchange. These agreements will significantly enhance and elevate the strategic partnership between Azerbaijan and Pakistan. They establish a strong foundation for future collaborations and joint ventures, indicating a robust and multi-faceted partnership. This cooperation will create new opportunities for mutual benefit, further strengthening the bond between the two countries.

- The Prime Minister of Pakistan said that “now is the time to move towards cooperation and joint investment in areas that are feasible and beneficial.” What areas of our economy may be of interest to Pakistan and vice versa?

- Prime Minister Shehbaz Sharif emphasized the need for cooperation and joint investment in mutually beneficial areas. Key sectors of interest include energy, agriculture, information technology, and infrastructure. Wide-ranging talks between the leaders of both countries aim to elevate bilateral relations, focusing on trade expansion, investment promotion, and exploring new opportunities. Both nations are committed to deepening economic ties and achieving mutual prosperity through strategic collaboration.

- Azerbaijan has done a great service to Pakistan in terms of rice exports. What types of goods lead in trade between the two countries?

- Azerbaijan has significantly supported Pakistan's rice exports by exempting them from a 15 percent import duty. Leading trade goods between the two countries include Pakistani cotton textiles, fruits, sporting goods, and chemicals. Both nations are committed to developing progressive and mutually beneficial relations over the next decade. This strategy aims to expand trade, strengthen existing ties, and foster joint development and cooperation.

- During the visit, the parties agreed to expand bilateral trade. A preferential trade agreement was signed, providing certain preferences in international trade over third countries that do not participate in such an agreement. What steps, from your point of view, should the parties take to increase trade turnover?

-The Preferential Trade Agreement (PTA) was signed, and both Pakistan and Azerbaijan emphasized the goal of enhancing bilateral investment to $2 billion in mutually beneficial projects. The agreement to enhance and boost bilateral investment from the current $100 million is a positive step forward towards development and progress. They should focus on implementing the newly signed preferential trade agreement to increase trade turnover. Steps include reducing tariffs, streamlining customs procedures, and enhancing logistics and transport connectivity. Encouraging private-sector partnerships and joint ventures will also boost investment.

- During the visit, several projects in the fields of energy, infrastructure, communications and many others were reviewed. What important economic projects have been implemented between our countries in recent years?

- In recent years, Pakistan and Azerbaijan have made significant strides in economic cooperation, especially in energy. Pakistan LNG Limited (PLL) and the State Oil Company of Azerbaijan (SOCAR) successfully delivered their first LNG cargo in December 2023. Both nations are also exploring renewable energy projects and potential cooperation in constructing an oil refinery in Pakistan. Azerbaijan currently supplies petrochemical products and urea fertilizers to Pakistan, with plans to expand these exports. Additionally, the countries aim to diversify trade and enhance cooperation in IT, agriculture, transport, and education.

- What are your expectations from COP29, which will be held in Baku this November? How will Pakistan support Azerbaijan to successfully host COP29? How can our countries cooperate in the development of green energy?

- The upcoming COP29 in Baku is a significant event for developing countries, including Pakistan. Prime Minister Shehbaz Sharif expressed confidence in President Aliyev’s leadership, anticipating meaningful outcomes on climate issues. Pakistan supports Azerbaijan’s hosting of COP29, viewing it as a shared opportunity and responsibility. Both countries are cooperating in COP29 green energy development to foster sustainable initiatives. Azerbaijan’s success in hosting COP29 will be seen as a mutual achievement by Pakistan.