Ahmed Khan Malik

The Karachi industry has expressed strong support for the recent trade agreements between Pakistan and Azerbaijan, anticipating significant economic benefits and enhanced bilateral cooperation.

Pakistan and Azerbaijan have agreed to boost bilateral investments up to $2 billion, focusing on sectors such as energy, trade, connectivity, defence, and cultural exchanges. This commitment was solidified through the signing of 15 Memorandums of Understanding (MoUs) covering diverse areas, including a Preferential Trade Agreement (PTA). Pakistan's Federal Board of Revenue (FBR) also announced tariff concessions on imports under the PTA. These concessions apply to products like hazelnuts, apricots, copper wire, and oil drilling equipment.

Farazur Rehman, Founder of Pakistan Business Group (PBGO) and former chairman of Korangi Association of Trade and Industry (KATI), welcomed the $2 billion trade and investment agreement between Pakistan and Azerbaijan, calling it a historic milestone. He revealed that PBGO already has an active chapter in Azerbaijan, which will work alongside the government to facilitate trade between the two nations. “This initiative is expected to further strengthen business ties and create new investment opportunities.”

Under the newly-signed agreements, Azerbaijan has pledged to invest $2 billion in Pakistan’s energy and infrastructure sectors. These agreements will accelerate trade activities and provide a significant boost to Pakistan’s economy. During a high-level meeting, Prime Minister Shehbaz Sharif directed officials to formulate a comprehensive trade strategy, while Deputy Prime Minister Ishaq Dar has been assigned to lead a special committee to oversee the implementation of these agreements.

Additionally, trade officers will be appointed in Azerbaijan and other key global markets to promote Pakistani exports and enhance trade relations. Preparations are also underway for the upcoming visit of the Azerbaijani president to Pakistan, which is expected to further solidify economic cooperation. Rehman, the PBGO founder, praised the government’s proactive approach, stating that this agreement will help position Pakistan as a strong economic force in Central Asia.

He further emphasised that PBGO will not only play a key role in ensuring the success of this agreement but will also expand its global network to promote Pakistan’s trade and economic growth. Tufail Mahmood, Secretary of the Port Qasim Industrial Area, said Karachi, as Pakistan's industrial hub, stands to gain substantially from these developments. “Local industries anticipate that the reduced tariffs will lower production costs, especially in sectors reliant on imported raw materials such as copper and oil drilling equipment.

This cost reduction is expected to enhance competitiveness and profitability,” he said. “Moreover, the agreements open avenues for Karachi-based businesses to explore export opportunities to Azerbaijan, particularly in textiles, pharmaceuticals, and information technology,” he said, adding that the city's strategic location and robust infrastructure position it well to serve as a gateway for Azerbaijani products entering South Asia.

He lauded the government's proactive approach in securing these agreements, emphasising the potential for job creation, technology transfer, and strengthened economic ties. He is optimistic that this collaboration will lead to sustainable industrial growth and diversification of export markets. "Karachi's industrial sector views the enhanced trade relations between Pakistan and Azerbaijan as a catalyst for economic advancement, anticipating mutual benefits and a prosperous partnership in the years to come,” Mahmood said.

Credit: INP-WealthPk