The work on the preparation of the Preferential Trade Agreement between Azerbaijan and Pakistan is expected to be completed next year, Chairman of the Board of the Pakistan-Azerbaijan Economic Cooperation Chamber, Azar Akbarov, told XQ.
According to him, currently, the parties are considering the introduction of tax and customs privileges on 15 or more products and services: "This includes fields such as pharmaceuticals, textiles, and agriculture. During the discussions, their number may decrease or increase. At the same time, applying similar privileges to oil and chemical industry products exported from Azerbaijan to Pakistan is also a subject of negotiation. Last year, Azerbaijan exported 28 products included in the nomenclature of goods to Pakistan, of which 82% were urea and 14% were aviation fuel. Due to the Ukraine-Russia conflict and recent tensions in the Middle East, the price of energy carriers has risen, and Pakistan is currently buying oil and oil products at high prices. The introduction of tax and customs privileges can increase our share in that market by making imports from Azerbaijan affordable."
Akbarov believes that, as a result of the mentioned privileges, the trade turnover between the two countries is expected to exceed $40 million in the next 2-3 years: "After the COVID-19 pandemic, there was a decrease in the trade turnover between the two countries. Thus, in 2020, trade turnover fell by 10.1% compared to the previous year, and in 2021 - by 11.7%. Last year, trade turnover grew by 2.4 times compared to the previous year and reached $28.2 million. In January–October of this year, the trade turnover made up $18.3 million. It seems that a decrease can be recorded according to the results of 2023 compared to last year. However, it should be taken into account that last year's trade volume was a record indicator of at least the last 12 years. Therefore, thanks to the introduction of trade privileges, we will see the restoration of significant growth dynamics in the trade turnover between the two countries."
