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Qabil Ashirov

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The inauguration of the Azerbaijan Trade House, attended by diplomats, distinguished dignitaries, and prominent business leaders, in Lahore, the second-largest city of Pakistan, indicates that relations between the two countries are getting stronger.

The two fraternal Muslim countries enjoy harmonious political relations. On all international platforms, Azerbaijan supports Pakistan’s rightful stance on Kashmir, and Pakistan has gone further by not recognizing Armenia as a sovereign state due to the Garabagh conflict. Besides, the two countries conduct joint military drills, and exchange experience through training courses that Azerbaijani military aircraft pilots attend in Pakistan. As for the development of economic relations between Azerbaijan and Pakistan, it is still not at the desired level. For example, the trade turnover between the two countries amounted to $22 million. Pakistan’s exports to Azerbaijan totalled $196,750, while Azerbaijan’s exports to Pakistan were $21.8 million.

Certainly, the current situation does not sit well with the two countries, and they are determined to take more effective steps to further accelerate development through expanding economic relations. For example, since January 2023, Azerbaijan has unilaterally exempted the customs duty on rice imported from Pakistan. In addition, the two sides concluded a Preferential Trade Agreement (PTA) and a Transit Trade Agreement (TTA) in 2024 during the visit of the President of Azerbaijan. The inauguration of the Azerbaijani Trade House in Lahore can be seen as a logical continuation of this process. Many believe that the Trade House will serve as a stepping stone to introduce Pakistani consumers to Azerbaijani products. Moreover, the Trade House can further enhance trade relations between the two countries.

Speaking to Azernews on the issue, Raza Syed, the editor of the London Post, noted that, in his view, the inauguration of the Azerbaijan Trade House in Punjab is a significant milestone in Azerbaijan-Pakistan economic relations. The initiative is expected to serve as a strategic platform to strengthen trade, investment, and business exchanges between the two countries.

“By providing a dedicated space for Azerbaijani businesses to explore the Pakistani market, especially in key sectors such as textiles, agriculture, information technology, and energy, the Trade House has opened the doors to deeper economic cooperation. Businesspeople from both countries will benefit from increased networking opportunities, leading to joint ventures, technology transfer, and mutual investment. More than just increasing trade volumes, this initiative will promote innovation, support human capital development, and create a conducive environment for long-term economic cooperation,” he expressed.

Raza opined that the establishment of the Trade House is also expected to significantly increase trade between Azerbaijan and Pakistan by facilitating trade links and improving market access. It will provide Azerbaijani investors with valuable insights into Pakistan’s business landscape, regulatory framework, and sectoral opportunities, encouraging them to invest in the growing markets of Punjab.

“Similarly, Pakistani businesses will have seamless access to the Azerbaijani market, boosting bilateral trade. Acting as a central hub for critical trade information and business engagement, the Trade House is poised to catalyze economic growth and strengthen the historically close ties between the two countries. This initiative signifies a commitment to promote comprehensive economic cooperation, ensuring sustainable and mutually beneficial economic progress,” concluded Raza Syed, the editor of the London Post.