Pakistan awaits Azerbaijan’s positive decision on preferential trade regime

Pakistan’s Trade Ministry hopes for Azerbaijan's positive decision on creating a preferential trade regime, the Pakistani newspaper Customs Today reported citing an informed source in the Ministry.

"A preliminary text of the agreement and the list of suggestions regarding the introduction of preferential tariffs for 100 items have already been sent to Azerbaijan," the source said.

The agreement will facilitate the expansion of economic activity between the two countries and increase the volume of mutual trade.

"The volume of trade turnover between Pakistan and Azerbaijan increased from $10.32 million in 20112012 to $60 million over the past five years," the source said.

Pakistan has prepared a five-year trade plan to increase the export of products to Azerbaijan to $500 million. The plan provides for expanding access to the Azerbaijani market by creating a preferential trade regime, which will subsequently be replaced by a free trade agreement.

The plan to increase exports to Azerbaijan was developed by the ministries of trade and defense production of Pakistan after the visit of the Prime Minister to Baku.

Pakistan is one of the oldest and closest allies and strategic partners of Azerbaijan in Asia. Pakistan was among the first countries that recognized the independence of Azerbaijan in October 1991. Last year, a number of high-level talks and meetings were held in order to develop bilateral trade, investment making, and identify business opportunities.

In October and December 2016, respectively, Pakistan's Prime Minister Nawaz Sharif and Commerce Minister Khurram Dastgir Khan visited Baku. During their visits, the expansion of trade and economic cooperation was discussed.

Trade turnover between Azerbaijan and Pakistan amounted to $7.3 million in 2016, according to Azerbaijan’s State Customs Committee.