Baku and Islamabad Collaborate in Petrochemicals and Solar Energy: A Commentary
Published on: November 10, 2023.
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November 10, 2023, 6:00 PM (UTC+04:00)
Azerbaijani President Ilham Aliyev and the caretaker Prime Minister of Pakistan, Anwaar-ul-Haq Kakar, met on November 9, 2023, at the 16th ECO in Tashkent. Both leaders expressed satisfaction with the current state of relations between Azerbaijan and Pakistan and discussed ways to further strengthen bilateral economic ties, trade, commerce activities, and investment opportunities.
In an interview with Azernews, Dr. Mehmood Ul Hassan Khan highlighted the prospects of cooperation between Azerbaijan and Pakistan. He emphasized the importance of activating the Intergovernmental Commission and collaborating on energy and transport links. Energy cooperation has emerged as a significant topic and a key driver to enhance bilateral relations between the two countries.
Azerbaijan has shown great interest in supplying liquefied natural gas (LNG) to Pakistan at a discounted price. The country has already extended assistance in the fields of oil and gas, as well as investing in Pakistan’s solar energy industry, which will help address Pakistan’s energy challenges in the future. Pakistan State Oil (PSO) and the State Oil Company of the Azerbaijan Republic (SOCAR) have been engaging in meetings to facilitate government-level cooperation.
Pakistan, on its part, aims to collaborate with Azerbaijan in the petrochemical and solar energy sectors. The Alternative Energy Development Council of Pakistan’s Energy Ministry, the Private Energy and Infrastructure Council, and the State Renewable Energy Agency of Azerbaijan have jointly formulated strategies to encourage Pakistani companies to invest in Azerbaijan’s renewable energy sector. Civil aviation cooperation is also gaining momentum, with Azerbaijan Airlines (AZAL) initiating direct flights between Baku and Islamabad. This development will further boost tourism, education, culture, and commercial ties between the two countries.
The Preferential Trade Agreement and Transit Trade Agreement are expected to contribute to the expansion of bilateral trade between Azerbaijan and Pakistan. The elimination of custom duties by Azerbaijan’s government has significantly increased rice exports from Pakistan. To further strengthen trade, it is suggested that additional food items be included in the zero customs duties category, opening up new opportunities for both countries and their business communities. Various sectors of the economy, including trade, trans-regional connectivity, energy, tourism, science, information technology, education, culture, agriculture, and infrastructure development, will form the basis of bilateral trade in the future. Mutual tariff reduction modalities should be finalized soon to facilitate trade between Azerbaijan and Pakistan.
Dr. Mehmood Ul Hassan Khan also noted the alignment between both sides in their efforts to enhance bilateral relations. Cooperation in information and communication is seen as mutually beneficial for both countries. Pakistani private sector and companies are already investing in Azerbaijan’s IT and communication sectors. The Azerbaijan-Pakistan Technology Forum, held in Baku, aimed to establish relations between IT companies from Pakistan and state and private partners in Azerbaijan. Pakistani IT companies have shown interest in artificial intelligence, blockchain, cloud technology, and other areas of the ICT sector. Pakistani IT companies have also been invited to operate and invest in the reconstructed and developed liberated territories of Azerbaijan.
Close collaboration between media companies, newspapers, and the film industry is essential for strengthening cultural exchange and tourism between Azerbaijan and Pakistan.
Source: [Azernews](https://www.azernews.az){:target=”_blank” rel=”nofollow”}
Source: Azernews
