Azerbaijan Asks Pakistan to Resume LNG Supplies
Staff Report
Azerbaijan has asked Pakistan to resume LNG supplies to meet the domestic needs of the country.
During the PDM government, two sides had signed an agreement to import at least one LNG cargo every month.
This deal was not based on take or pay clauses but rather it focused on being a commercial deal that could suit Pakistan.France Renews Offer to Export LNG to Pakistan After Decade
Federal Minister for Commerce, Jam Kamal Khan, and Ambassador of Azerbaijan to Pakistan, Khazar Farhadov, met here on Thursday to discuss bolstering economic cooperation between the two nations.
Ambassador of Azerbaijan to Pakistan, Khazar Farhadov took up the matter with the commerce minister and emphasized the resumption of LNG supplies from Azerbaijan to Pakistan and the potential for mutual investments, particularly in energy and IT sectors.
PTA Deal
Pakistan and Azerbaijan are at an advanced stage to finalize the preferential Trade Agreement (PTA) to boost bilateral trade.
Two countries have pledged to finalize the deal as early as possible to take benefit of new opportunities of boosting bilateral.
This deal will also open an avenue for Pakistan to enter the Russian market offering a lot of opportunities due to tension with European Union countries after the Ukraine war.
According to media reports, India had replaced Germany in the import of pharmaceutical products to Russia after the Ukraine war.
Therefore, Pakistan can not only take benefit of the Azerbaijan market but it could enter into the market of Russia to take benefit of the opportunities that it offered after the Ukraine war.
Highlighting the historical, political, and economic ties shared by Pakistan and Azerbaijan, Minister Jam Kamal emphasized the need to extend bilateral trade to its true potential by addressing trade-related issues.
Minister Jam Kamal noted the increase in exports to Azerbaijan from US$ 9.70 million in 2021-22 to US$ 12.08 million in 2022-23, alongside a significant rise in imports primarily due to fertilizers.
Both countries are actively negotiating a Preferential Trade Agreement (PTA), with finalized drafts.
Ambassador Khazar Farhadov stressed the importance of high-level visits to enhance bilateral relations and elevate trilateral cooperation with Turkiye.
Notably, Azerbaijan exempted Pakistani rice from import customs duty until December 2027, signaling a gesture of goodwill.
Minister Jam Kamal reiterated Pakistan’s commitment to strengthening commercial and economic ties, emphasizing the importance of people-to-people contact and the signing of the PTA to bolster trade volume and create new business opportunities.
