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Akbar Novruz

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Pakistan places great importance on expanding trade with Azerbaijan through the development of land transport routes, Pakistan’s Federal Minister for Privatisation, Investment and Communications, Abdul Alim Khan, said during a meeting with Azerbaijani Ambassador to Islamabad Khazar Farhadov, Azernews reports citing Pakistani media.

“The activities of the Pakistan-Azerbaijan Joint Chamber of Commerce are aimed at promoting trade through land links. Pakistan and Azerbaijan are connected by historical, geographical and religious ties. Pakistan strives to promote bilateral trade and cooperation,” Khan stated.

The meeting also covered other issues of mutual interest and the current regional situation. Ambassador Farhadov emphasised that friendly relations between Pakistan and Azerbaijan will continue to develop.

Pakistan and Azerbaijan have had friendly diplomatic relations since the early 1990s, but their trade and economic ties have historically lagged behind their strong political and defence cooperation. In recent years, both governments have been making clear efforts to change that.

As regards the trade volume between the two nations, bilateral trade has been modest, often under $20–30 million annually for most of the past two decades. Thus, according to reliable sources, key Azerbaijani exports to Pakistan include petrochemical products, oil and gas, and cotton. In its turn, Pakistan exports rice, textiles, surgical instruments, and sports goods to Azerbaijan.

Moreover, the trade balance tends to favour Azerbaijan because of its energy exports. The Pakistan–Azerbaijan Joint Ministerial Commission (JMC) meets regularly to identify trade and investment opportunities. The two countries have signed agreements on customs cooperation, investment protection, and the avoidance of double taxation.

However, a major hurdle has been the lack of direct shipping routes. Much trade is routed through Iran, Türkiye, or the UAE, raising costs and transit times.

The development of the Middle Corridor and improved connectivity through Central Asia has become a priority, which is believed to make trade more competitive.