Potential & Opportunities in Azerbaijan for Pakistan Products
Pakistan & Azerbaijan Both the states started recorded trade in 1995, by inking an agreement under the Economic Cooperation Organization. Joint Ministerial Commission is the only bilateral framework for trade which unfortunately could not exploit the full economic potential by either side. Keeping in view the economic potential of both states, the current trade volume is not promising and both partners sought help from business community to further strengthen Business Corporation. Both sides can potentially increase the volume of bilateral trade by sharing business expertise and connecting markets. Oil is a major commodity of Azerbaijan while Pakistan is facing an acute shortage of energy resources, thus Pakistan constitutes an interacting market in oil and gas sector investment for Azerbaijan. According to an estimate, there are 267 companies with Pakistani capital worth $4.2 million are operating in Azerbaijan while trade turnover between both states reaching $5.82 million in 2018, which is 36 percent more than last year figures.
Agriculture exports is one sector which is necessary for Pakistani businessmen to explore in Azeri market and find partners there to continue supplies. Pakistan often exports potato, rice, onion, tomato and garments to Azerbaijan, however, surgical goods and sports goods are something which can be further explored as well. It is important to note here that Pakistan is an agriculture based economy and the most of its exports are products or services related to this sector. Pakistan is one of the largest producers of rice in the region and its market share is rising. While on the other hand, Pakistan’s Mango is also famous across the globe for its taste. These two major crops along with cotton and several other important agricultural products, give strength to our economy. Since mangoes and rice, are being exported to various other Central Asian countries and the other regions. However, few of the companies have started their supply of the goods but more can be done with cooperation from the government and the chamber of commerce and industry platforms. This will open up new value additions apart from mangoes and rice. Pakistan can also export other items including potatoes, onions, rice, lentils, cotton, pharmaceuticals, surgical and related products, textiles and others.
Pakistan also has a potential for manufacturing sports goods and Azerbaijan has a huge market due to the presence of the high number of games played in the country.
The growing connectivity and B2B meetings better set the course of future bilateral trade. Pakistan can potentially replace other competitors in Azerbaijani markets.
There exists a great scope for Azerbaijan to import Pharmaceuticals, Medicine, Cosmetics, Surgical instruments, Cutlery, Electrical appliances, Textile, Leather, Sports and Sportswear, furniture, home-made crafts, crafts, food and accessories, ready-made garments, cotton products, Engineering goods, Consumer goods, Rice, Textile fabrics, Sports goods and Tents.