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Aze.Media > News > Cementing Ties
News

Cementing Ties

Pakistan has always had cordial, even friendly, relations with Azerbaijan as both share similarities in faith, culture and history.

AzeMedia
By AzeMedia Published June 15, 2023 3 Min Read
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To strengthen this alliance further, President Illham Aliyev invited PM Shehbaz Sharif for a two-day visit with the objective of discussing potential collaborations in the field of trade, investment and energy. It is reassuring to see the government make an effort to side-step international conflicts, market uncertainty as well as diplomatic pressures, and pursue opportunities that lie in the region instead.

Pakistan and Azerbaijan are already embroiled in the Bilateral Political Consultations (BPCs) that completed their third session back in May. Both sides concluded having made immense progress by creating a Working Group on Trade, signing a Preferential Trade Agreement, and implementing tariff-free access to agricultural produce like rice, fruits and vegetables. The terms agreed upon previously will undoubtedly be reiterated during this visit, but now our aim should be to secure high volumes of exports with our regional partner, all the while negotiating investment and energy trade opportunities.

Pakistan’s woes, particularly in regard to depleting foreign reserves, are well-known throughout the globe. There is no hiding the fact that we are looking to cut down on our import bill for gas and petroleum products, and Azerbaijan extended an olive branch that we desperately need. Previously, both countries decided to establish credit lines worth $220 million to import petroleum products and LNG under government-to-government arrangements. To build upon this, Azerbaijan also agreed to provide Pakistan with one LNG cargo per month, at cheaper rates. Details of this agreement were not specified, so it is essential that the PM brings this to the table for discussion during his visit. Globally, prices of oil and gas have spiked and we could use a source that promises to provide it at subsidised rates.

All this is perhaps the first step towards improving regional relations and creating a bloc that should be reckoned with. Azerbaijan, in specific, has always been an alliance that represents trust and fraternal relations and it would be unwise for us to let potential go to waste.

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