ISLAMABAD: A preferential Trade Agreement (PTA) between Pakistan and Azerbaijan is expected to be finalized in the first week of the coming month of August 2023, for evolving the trade liberalization and enhancing the bilateral trade between both countries.

Pakistan and Azerbaijan also agreed to initiate direct flight operations in major cities of both countries including Islamabad and Baku.

Azerbaijan Minister of Digital Development and Transport, Rashid Nabiyev, visited Pakistan on Tuesday to meet with Federal Minister for Commerce, Syed Naveed Qamar, to discuss the finalization of the Preferential Trade Agreement (PTA) and Transit Trade Agreement (TTA) between the two sides, said a press release issued here.

During the meeting, Minister Nabiyev informed Minister Qamar that the PTA is expected to be finalized in the first week of August, while the TTA is planned to be signed by the end of August or in September.

He mentioned that discussions regarding the TTA are currently underway in Azerbaijan’s relevant ministries.

Syed Naveed said direct flights would further strengthen the bilateral trade and connectivity between the two nations.

To ensure the timely finalization of the Transit Trade Agreement, Federal Minister Syed Naveed Qamar proposed the establishment of a High-Level Joint Working Group, which would actively work towards achieving the desired goals.

Both countries are presently engaged in negotiations for the Preferential Trade Agreement.

Pakistan has completed consultations to finalize its list of requested items, sharing a request list of 103 items with Azerbaijan on June 14, 2023, seeking market access.

On the other hand, Azerbaijan has shared its request list of 84 items, and the Ministry of Commerce in Pakistan is currently conducting stakeholder consultations on these items.

Regarding the Transit Trade Agreement, the Ministry of Commerce shared the draft agreement with Azerbaijan on September 15, 2022, with the consensus of all stakeholders.

The agreement encompasses all modes of transportation, including road, railways, air, and sea.
During the discussions, tariff reduction modalities and lists were also deliberated upon, with the aim of further facilitating trade between Azerbaijan and Pakistan.

Both sides expressed their commitment to enhancing bilateral trade ties between the “brother countries” and strengthening economic cooperation.