Pakistan and Azerbaijan Seek Finalization of PTA
Published on: April 5, 2024.
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Pakistan and Azerbaijan Seek to Boost Economic and Trade Ties
Pakistan and Azerbaijan are working towards strengthening their economic and trade relations by finalizing a bilateral Preferential Trade Agreement (PTA). The aim is to increase the volume of bilateral trade between the two countries.
A meeting was held between Federal Minister for Commerce, Jam Kamal Khan, and Ambassador of Azerbaijan to Pakistan, Khazar Farhadov, to discuss and enhance economic cooperation. Both parties expressed their commitment to deepening commercial and economic ties by emphasizing the importance of people-to-people contact and the signing of the PTA. It is believed that these efforts will not only increase trade volume but also create new business opportunities.
Minister Jam Kamal highlighted the historical, political, and economic ties shared by Pakistan and Azerbaijan. He stressed the need to tap into the true potential of bilateral trade by addressing trade-related issues effectively. He also noted a significant increase in exports from Pakistan to Azerbaijan, rising from US$9.70 million in 2021-22 to US$12.08 million in 2022-23, largely due to fertilizer imports.
Both countries are actively involved in negotiating the details of the Preferential Trade Agreement (PTA) and are in the process of finalizing drafts. This agreement will further facilitate trade between the two nations.
Ambassador Khazar Farhadov underscored the significance of high-level visits to strengthen bilateral relations. He also expressed the desire to enhance trilateral cooperation with Turkey. The Ambassador emphasized the importance of resuming liquefied natural gas (LNG) supplies from Azerbaijan to Pakistan and highlighted the potential for mutual investments, particularly in the energy and IT sectors.
In a gesture of goodwill, Azerbaijan has exempted Pakistani rice from import customs duty until December 2027. This exemption signifies the strong bond between the two countries and sets the stage for further collaboration in the future.
Overall, Pakistan and Azerbaijan are dedicated to strengthening their economic ties and creating new avenues for trade and investment. The ongoing negotiations for the Preferential Trade Agreement (PTA) demonstrate their commitment to further enhancing bilateral cooperation. With the exemption of import customs duty on Pakistani rice, the stage is set for increased collaboration and mutually beneficial trade relations between the two nations.
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