Fascinating Azerbaijan

A fascinating country, the Republic of Azerbaijan has achieved tremendous socio-economic prosperity, geo-political stability and geo-strategic importance after independence in 1991 under the leadership of National Leader H.E. Heydar Aliyev and President H.E. Ilham Aliyev. The main achievement of Azerbaijan since its independence has been the strengthening of statehood and turning the country into a full-fledged member of the international community. The independence of Azerbaijan has become irreversible.

Comparative Study
A comparative study of its stable socio-economic performance shows that GDP growth reached 1.3 percent in 1996, 5.8 percent in 1997, and averaged 10 percent during 1998-2003. During (2004-2011) the country’s real GDP grew by three times.

Azerbaijan has significantly improved its positions in the annual ranking list of world economies for (2013-2014), (2015-2016) and (2016-2017) while consolidating its status of a country with the most competitive economy among the regional states. The national budget grew 19 times over the last 10 years. Incomes of population grew 6.9 percent, pensions 8.6 percent while salaries grew 6.3 times.

“Founding Father Heydar Aliyev put an end to the threat of the country’s collapse, separatist tendencies and civil war. He ensured unity of the state. “Establishment of public-political stability, stoppage of military operations and signing of the ‘Contract of the Century’ laid the basis for the introduction of broad-scale reforms in all areas”

Azerbaijan: Pride of all Muslim Countries
The development and achievements of Azerbaijan is a pride for all Muslim countries and an example of good governance for a number of developing countries. Azerbaijan Democratic Republic was the first democratic republic in the Muslim world and one of its achievements was that granting to women of the right to vote much earlier than in many European countries.

New Economic Model & Contract of Century
Its visionary leadership introduced a “New Economic Model” and institutionalized various economic reforms in the way of preserving the independence, especially the “Contract of Century” and underlined not only economic, but also geo- political significance which is now paying its dividends. Under the leadership of President Ilham Aliyev, Azerbaijan passed through different “Phase of High Economic Growth” and gained and sustained high economic growth in 2003-2013 which successfully transformed its socio-economic policies.

President Ilham Aliyev & Phase of Economic Diversification
President Ilham Aliyev ensured sustainable economic growth in Azerbaijan which entered the post oil period and implemented different “Phase of Economic Diversifications”. He ensured a stable economy due to human resources, rich underground and aboveground resources, as well as sensible foreign policy.

Diversified Country
It has one of the most diversified economies in the region. 70 percent of Azerbaijan’s economy is formed in the non-oil sector. It is now seriously engaged in diversification of exports which will decrease its dependence on oil and gas to the lowest level in the days to come. Over the past quarter-century Azerbaijan achieved significant progress in interrelated fields of stability, progress and productive channel namely, economic, political, social and cultural. It possesses 75 percent of the GDP of the South Caucasus which is indeed a great achievement in terms of unmatched socio-economic development, FDIs, joint ventures, massive industrialization, diversification of economy, boom of service sector, tourism, exports and rigorous commercial diplomacy.

Rise to Non-oil Sectors (2000-2014)
Azerbaijan has had diversified economy since its independence. The mining industry accounted for 87.9 percent of the total industry in 1991, and the top position of manufacture replaced by petroleum industry in 1999 when the share of oil and gas extraction surpassed that of manufacture the first time.

The Changing Shares of Manufacture and Oil Industry
The changing shares of manufacture and oil industry are brought out by the super-speed growth of the mining sector though the manufacturing also developed quickly. Development of non-oil sector was always the priority of Azerbaijan. In order to diversify economy, recent years president Ilham Aliyev signed many decrees and endorsed several development programs such as “Socio-economic development of regions in 2014-218 years”, “Azerbaijan-2020: outlook for the future”, “State program for development of industry in 215-2020 years”. The main goal of all these national programs and decrees is to support development of small and middle businesses and provide them with affordable soft loans, technologies and subsidies in order to diversify economy in all regions.

Utility of National Fund for Entrepreneurship Support
In 2014, the “National fund for entrepreneurship support” granted 295 million manat soft loans to more than five thousand entrepreneurs. With support of soft loans during 2014, thirty nine new enterprises were opened, which is expected to lead to more than 12,500 new job openings. Along with development programs, 2014^th was announced as “Year of industry” and 2015^th year as a “Year of agriculture”.

Development of different sectors (2005 -2014)

Non-Oil Foreign Trade

Multiplier Effects
During these years implemented measures both in industry and agriculture led to increase of non-oil industry about 7 percent in 2014 and 8.4 percent in 2015 and agriculture about 6.6 percent in 2015. During the “Year of industry”, more than 230 new industrial enterprises were opened, and production potential of existing enterprises was increased. More than a hundred of those new enterprises were opened in regions. As a result, all reforms, programs and decrees of non-oil sector increased 9 percent in 2013 and 7 percent in 2014. Moreover, according to the Statistical Committee of Azerbaijan Republic, proportion of non-oil sector in total GDP increased from 47 percent to 60 percent during 2009-2014. In the last eleven years non-oil sector increased more than 2.5 times.

Booming Service Sector
Due to the diversification drive the service sector’s output value has increased more than five fold during 2005-2014, which is the fastest in its entire macro-economy. From 2000 to 2014, there are 4 sectors in the economy that grew more than 10 times, and among them 3 sectors belong to service sector i.e., real estate 17.4 times, accommodation and food service 17.1 times, arts and entertainment 10 times and financial and insurance 7.2 times, Education 5.9 times, Administrative and support service 5.8 times, Construction 5.6 times, Human health and social work 5.4 times, trade and repair of transport 5.1 times.

Non-Oil Share in GDP %
Non-oil sector now occupied a bigger share than oil sector in the macro-economy of Azerbaijan. The share of non-oil sector in Azerbaijan’s GDP was only 37 percent in 2007, but up to 2014, it has increased to 56 percent. Absolute value of non-oil sector has grown sustainably and faster than oil sector and oil sector in fact has come into a retreating cycle indicating the non-oil sector has gained a favorable foundation to emerge despite the oil-related products still dominate Azerbaijani export. These are great achievements in Azerbaijan’s economic diversification.

Azerbaijan: A Regional Economic Leader
Azerbaijan is now a regional economic leader in the South Caucasus and an important economic actor in the Caspian region. Azerbaijan has been appreciated by all major international institutions, including the International Monetary Fund, World Bank, European Bank for Reconstruction and Development, Islamic Development Bank, and Asian Development Bank for its socio-economic development during the last 25 years. Globally, Azerbaijan is trying to keep a balance in its relations with the West and East and regionally, Azerbaijan has sought to keep a balance among all the regional countries.

GDP per capita
GDP per capita was at 3275.71 US dollars in 2014. The GDP per Capita in Azerbaijan is equivalent to 26 percent of the world’s average and averaged 1720.58 USD from 1990 until 2014, reaching an all-time high of 3275.71 USD in 2014 and a record low of 650.80 USD in 1995.

Balance of Trade Azerbaijan
In balance of trade Azerbaijan recorded a trade surplus of 509849 USD Thousand in the fourth quarter of 2015. Balance of Trade in Azerbaijan averaged 2448397.93 USD Thousand from 1998 until 2015, reaching an all-time high of 8201764 USD Thousand in the second quarter of 2008 and a record low of -306551 USD Thousand in the fourth quarter of 1998.

Comprehensive Transformation
 Since its independence, Azerbaijan has turned from a Soviet republic into a full, independent and sovereign state which succeeded in transforming its political, economic and social model different from regional countries. Optimal utility of rich natural and human resources, moral and psychological qualities of the people geared its socio-economic development which enabled Azerbaijan to be transformed from an ordinary Soviet republic into a developed state.

Sustained Social Development
Azerbaijan has achieved outstanding success since its independence. The most important thing is a sustainable growth in social development and constant high economic growth. Despite having numerous oil and gas reservoirs it developed diversification of resources and productive channels and enabled to transfer oil and gas to different countries, including European Union. A stable and very strong political system which allows making right economic decisions was established. A strong army which is capable to implement tasks on the liberation of Nagorno-Karabakh and the adjacent regions was also formed. It proved its military might during the four-day war in April 2016.

Azerbaijan: An Important Force
Azerbaijan has now become a force that plays an important role in determining the course of regional and global politics. It had been elected a non-permanent member of the UN Security Council and it honorably served its term in the Security Council and continues its active participation in the international sector. It has become the center of a number of global projects, a platform of dialogue between civilizations and cultures, the venue for major cultural and sporting events.

Azerbaijan’s International Engagements
Azerbaijan made significant contribution in Iraq and Afghanistan and also contributed greatly to global counterterrorism efforts since 9/11. Azerbaijan is part of NATO’s Partnership for Peace program and participates in Alliance training exercises and officer exchanges.

Azerbaijan and East-West corridor
Azerbaijan is today playing an active role in creation of the East-West corridor. The Baku-Tbilisi-Kars railway will be commissioned in the months to come and its linking Europe and Asia will give great economic profits. The volume of the cargos to go through this corridor will reach tens of millions of tons. It is also creating the North-South corridor. It will allow us transport additionally tens of millions of tons of cargos. It is a giant step towards diversification of macro-economy will exactly is the reduction of dependence on the oil and development of the non-oil sector.

Azerbaijan’s Energy Policy
Azerbaijan has made an important progress in the development of the energy sector. The Baku-Tbilisi-Ceyhan oil pipeline, Baku-Tbilisi-Erzurum gas pipeline and other large-scale strategic projects that deliver energy resources of our country to the world market are of great importance in ensuring energy security of Europe.

Southern Gas Corridor
The southern gas corridor consists of 4 projects. First is the exploitation of the “Shahdeniz-2” phase; the reserves in the Shahdeniz field exceed 1 trillion cubic meters of gas. In general, Azerbaijan’s proven gas reserves together with the other gas reserves of the country amount to 2.6 trillion cubic meters. The second project is the expansion of the “South Caucasus gas pipeline” which connects Azerbaijan with Georgia. The third project is the “Trans-Anatolian gas pipeline” (TANAP). According to this project signed by Azerbaijan and Turkey in 2012, the gas pipeline will extend from Turkey-Georgia border till Turkey-Greece border. The fourth project is the “Trans-Adriatic pipeline” (TAP). The pipeline will extend from Greece to Albania and coming to Italy beneath the Adriatic Sea. All these 4 projects are the parts of the “Southern gas corridor”. Azerbaijan is an important shareholder in these 4 projects and the major shareholder in the TANAP project. As a result of the implementation of the “Southern gas corridor”, a number of countries will gain access to the Azerbaijani gas as an alternative gas reserve. Georgia, Turkey, Greece, Bulgaria, Albania and Italy are among the participants of the “Southern gas corridor” project. At the same time memorandums of understanding have been signed with Montenegro, Bosnia and Herzegovina and Croatia that also want to join this project. So Azerbaijan becomes a very important and reliable partner for providing the energy security of Europe.

Azerbaijan’s Transport Infrastructure 
The development of transport infrastructure has further diversified its economy and service sector. It is restoring the historical silk way by applying modern technologies and with the participation of neighboring countries. At present, the Baku-Tbilisi-Kars railway running from Azerbaijan through Georgia and into Turkey is under construction and will for the first time connect Azerbaijan with Europe by train.

Giant Leap: Azerspace-1 & Azersky
At the same time, several international airports have been built in Azerbaijan, while an international sea trade port is under construction that will be the biggest trade port in the Caspian basin. Azerbaijan has joined the global aerospace family by launching its satellites “Azerspace-1” and “Azersky” into orbit.

Development of E-Government
It has institutionalized e-government that increases elements of transparency, efficacy and productive in the different sectors while connecting general masses with decision makers. It enhances accessibility and promotes culture of accountability. Now different interactive electronic services are being provided by the government to common people through “ASAN service” centers. Nine “ASAN Service” centers now function in the country. Electronic services provide 112 services in 30 fields by state entities and 140 functional auxiliary services. Two new centers are now under construction. 10 mobile buses serve citizens in different regions of the country. Till today 7 million people have used the services of ASAN and people’s satisfaction coefficient is nearly 100 percent.

Azerbaijan: Post-Oil Era
Azerbaijan, which has now entered the post-oil era, is implementing series of serious reforms in all sectors of economy. The road network of the country is overhauled, railways are modernized, and international transport corridors North-South and East-West are under construction. Along with the capital, international airports were put into operation in the regions, and the sea port that meets modern standards became operational. Brand-new technology-driven industrial entities are creating material and technical facilities for a dynamic development of metallurgy, mechanical engineering, construction of building materials and other industries due to which it is now on the right path of further diversification of economy, energy resources and the last but not the least, productive channels in the country.

Valuable Human Capital
Azerbaijan has achieved an immense social development and has successfully transformed oil capital into a human capital. It initiated diversified but integrated policy measures to further improve the education system due to which it has now achieved a knowledge based economy. Its state education program is now rated among the best in the world. New schools, hospitals, museums, Olympic venues, cultural institutions and recreational areas are contributing to the improvement of the social life. The “ASAN xidmət” network, targeted social assistance, provision of low-income families with housing on favorable terms and other projects are the result of the ongoing national social policy.

Modern Baku
Azerbaijan has great infrastructural development since its inception and modern Baku which has developed into one of the most beautiful cities in the world is regarded as the outstanding example of a harmonious development of the historical and modern architecture. The ongoing creation of a necessary infrastructure, opening of new hotels and grandiose landscaping work in the regions open up broad prospects for a successful development of tourism. It has now become one of the most hot-spot for regional as well as international tourists in the world.

Role Model of Employment Generation and Youth Policies
It is a role model of employment generation and youth policies in the world that promote healthy and meaningful role of Azeri youth in the political, economic and socio-cultural life of the country which is on the rise by each passing day. Its youth and sportsmen demonstrated great skills and won many medals in different championships, Olympic Games Rio de Janeiro. Holding of the First European Games in Azerbaijan are inscribed in the history of its sports.

International Hub
Azerbaijan has now become ideal destination of prestigious international summits, forums, exhibitions, contests and competitions which is a manifestation of high confidence. For the past 25 years the Azerbaijan nation has maintained a unique path of development as a sovereign state, building on the national and spiritual values, creativity, patriotism and commitment to create.

Productive Channels & Competitive Country
It has one of the most productive channels in the region and is one of the most competitive countries in the world due to which high inflows of Foreign Direct Investments (FDIs) and joint ventures are always on the move. It is also an icon of tolerance and interfaith harmony where diversity of humanity and faith is respected and protected. It has strategic leadership in the shape of its visionary President H.E. Ilham Aliyev due to which, despite declining oil and gas prices its macro-economy is still stabled and sustained.

Economic Dividends
Azerbaijan’s macro-economy has tripled since 2003. Its industrial development has also been tripled while poverty has been controlled and almost vanished. The poverty level, which was standing at approximately 50 percent, has dropped down to 5 percent. Salaries and pensions have been increased by several times over the last 13 years. Azerbaijan also started the development of its different regions, more than 1.3 million new jobs have been created as a result of implementation of state programs. It has unique development strategy which balances “Rural-Urban” progress.

Development of Social Infrastructure
Social infrastructure projects are underway, more than 3,000 schools and 600 medical centers have been built and more than 40 Olympic centers have been constructed in the regions. It is moving towards advanced technological development. Azerbaijan is one of the few members of the space club having two satellites while a third will be put into operation in the near future.

Azerbaijan is taking very serious steps with regard to the development of other sectors of its economy. Recently the development of industry and agriculture has been on the rise in Azerbaijan. Despite the continuing economic crisis in the world, it has taken very serious steps in this direction due to which in the coming years the development of the non-oil sector will proceed at a higher pace.

Global Rankings
According to latest published report of the World Economic Forum entitled “Global Competitiveness Report 2016-2017”, the Republic of Azerbaijan was rated as the best in the region.

Value of Constant Economic Liberalization
Azerbaijan once again reaffirmed the values of constant economic liberalization, privatization, market economy, reforms in banking and financial sectors and the massive diversification of available human and industrial resources in the country. It also acknowledged visionary leadership of Azeri President H.E. Ilham Aliyev which he used for achieving higher rates of socio-economic development, industrialization and above all a sustained economic growth the country for the last so many years.

Despite substantial decrease in oil prices, Azerbaijan successfully managed the upward pace of macro-economy and heavily invested in education, human resources and tremendously improved business environment. It also effectively activated goods market efficiency and generated diversified but integrated business activities in the country which supported its macro-economy. Despite ongoing lower oil prices, its economy is more diversified, smarter, stable and sustainable.

Ideal Hub for Doing Business
Azerbaijan is one of the ideal hubs of doing businesses and seeking investments in the world. It is paradise for investors, businessmen and joint ventures in the region and beyond. Keeping in view its constant business/investment oriented initiatives, the WEF report 2016 raked it 3^rd for the number of procedures required to start a business, 9^th for time to start a business, 18^th for the level of women’s participation in the labor force, 39^th for macroeconomic environment, 36^th for the strength of investor protection, 33^rd for the number of internet users, 44^th for innovations, and 41^st for the government debt.

Azerbaijan’s Superiority
Azerbaijan has superiority in terms of constant reforms, economic dividends, pro-business/investments policies and sovereignty of its State to protect the interests of local as well as international businessmen and investors alike. It also confirmed the high levels of productive channels, taxation system, economic inter-mediators which are truly knowledge based and smarter. Moreover, its national drive of green energy and diversification of energy mix has already transformed it an ideal hub for all kinds of foreign direct investments and joint ventures.

Its macro-economy is now strong, stable and sustainable. Its oil and gas sector is productive, robust and lucrative while its services sector is healthy and attractive. Its industrial sector is at its best levels while the banking and financial industry is flouring and providing crucial input to its domestic industries as well as global partners.

Mitigation of Negative Effects
Azerbaijan has successfully neutralized negative effects of the external factors on its economy. Public budget revenues in 2016 are expected to reach 16.822 billion manats ($11.202 billion), while the rate of expenditures will amount to 18.495 billion manats ($12.316 billion). The budget deficit is expected to be at the level of 1.673 million manats ($1.109 million) which stands for 2.9 percent of the GDP.

Azerbaijan’s President Ilham Aliyev signed an order on the preparation of the draft economic development strategy and the action plan for 2016-2020, the draft long-term review for the period until 2025 and the draft review of objectives for the period after 2025 in March 2016. For achieving these high rates of socio-economic development, has already been created to improve development plans in accordance with the “Main Directions of Strategic Roadmap on National Economy and Major Sectors of Economy”.

The implementation of these new reforms would further strengthen its comparative advantage in the region and beyond. It would enhance its international trade. It would accelerate inflows of FDIs and FPIs in the country. It would further stabilize its currency management and boost to its banking and financial industry.

Economic Forecasts 2016-17
Most recently, Azerbaijan Finance Minister briefed about different economic estimations for the 2016-17 which would further nullify negative effects of the external factors. It also highlighted about the economic plan of 2017.

The country has already prepared forecast indicators of the state budget and a draft concept of the socio-economic development for 2017 and subsequent three years. Finance Minister said that oil price has been set at $40 per barrel in Azerbaijan’s draft 2017 state budget, mentioning that the budget expenses will be reduced in 2017. He hinted some policy adjustments in the expenses and revenues policies during 2017. It would establish optimization of expenses. Moreover, the country has also prepared two additional scenarios for forecasting the state budget given the price at $35 and $45 per barrel.

The parameters of the state budget for 2016 were based on oil price standing at $25 per barrel, which was mainly connected with the decline in oil prices, which in turn sharply reduced the projected revenues of the state and consolidated budgets, as well as devaluation of the national currency and transition to a floating exchange rate.

According to economic development plan of 2017, the government will support entrepreneurship by allocating funds for the support of entrepreneurship in the country, while the volume of funds, allocated from the budget for the National Fund for Entrepreneurship (NFES) in 2017 will remain at the level of the current year. The funds will contribute to the involvement of a greater number of entrepreneurs in the economy that, in turn, will lead to its further growth. Credit facilities mechanism will be business and investment friendly.

Preconditions for the country’s future successful development
This clearly indicates the main goal of the policy, as well as political and economic reforms pursued currently in the country, based on the requirements of the post-oil period, is first of all to continue the country’s socio-economic development, even more strengthen its leading position in international community and fully meet the growing material and moral demand of the population in the future. It has also created a flexible, operative and effective governance system and has benefitted from the existing internal opportunities more effectively and comprehensively.

Obtaining independence on November 18, 1991, the Republic of Azerbaijan entered a long lasting transition period with different stages, which lasted till 2010. During this period, the economic development of the country experienced several cycles which are given above.

Azerbaijan’s Economic Model

Azerbaijan’s Economic Achievements
Nevertheless, despite all the above-mentioned, the average growth rate of the economy of Azerbaijan during the 25 has been characterised with positive results particularly due to the rapid growth in the second decade. In 2008, the GDP production in Azerbaijan was twice more than that of 1990. According to the results of 2010, Azerbaijan was ranked the 72^th country of the world for of the GDP with a national income of USD 54.37bln2. It attracted more than $250 billion has been invested in Azerbaijan. “Half of this is direct investment from abroad. A part of it was invested in oil and gas sector. A lot was invested in the non-energy sector.”

Azerbaijan-Pakistan’s Bilateral Relations: A Game Changer
Azerbaijan-Pakistan’s Bilateral Relations are Game Changer which has further strengthened after Prime Minister of Pakistan Mian Nawaz Sharif most recent visit to Republic of Azerbaijan. During his stay he met with H.E President Ilham Aliyev, Prime Minister and other high officials. Azerbaijani President and the Pakistani PM discussed the high-level political cooperation between the two countries. Recent reciprocal high official visits have totally transformed bilateral relations between the two countries, now both are more connected because of greater socio-economic integration which has also brightened the future prospects of foreign direct investments (FDIs), joint ventures (JVs) and energy cooperation. Both countries signed a joint declaration which depicted their resolve to enhance and diversify the already dynamic relations. Both countries showed satisfaction on political relations which now are steadily growing.

Ilham Aliyev also stressed upon the need to have closer socio-economic integration, business dialogue and greater regional connectivity through effective forums. He also wished to have closer military cooperation in diverse fields and termed Pakistan as one of the closest friends of Azerbaijan. Both leaders emphasized the strategic significance of the cooperation between the two countries and also agreed to develop their cooperation in economy and investments, boost their trade turnover, pay greater attention to humanitarian issues and have a very broad and effective cooperation.

The Azerbaijan President noted that Azerbaijan has always supported Pakistan on issues related to Kashmir, and Pakistan for its part always supported Azerbaijan on issues related to the settlement of the Armenia-Azerbaijan Nagorno-Karabakh conflict. He said the two countries stand side by side in all the international organizations and noted Nawaz Sharif’s visit gives a good opportunity to review the work done and to set the future plans.

Azerbaijan and Pakistan explored chances of further military cooperation. President Aliyev said Azerbaijan and Pakistan have a very good cooperation in the military sphere. Both leaders discussed the plans regarding the joint military drills of the two countries’ armed forces. The Azerbaijani president noted that Pakistan has a very developed defense industry, and that the sides have thoroughly discussed the cooperation in this sphere.

The President showed his country interest to buy the most modern and high-tech weapons from Pakistan. He said there is understanding between the parties on this issue. The president said he and Nawaz Sharif also mulled the cooperation in other sectors of the economy, particularly in agriculture and tourism. During a joint press briefing, President of Azerbaijan Ilham Aliyev also showed his willingness to sign a deal with Pakistan for buying defence equipment.

Ilham Aliyev hoped that once the electronic visa system is implemented in Azerbaijan, it will be very easy for the Pakistani citizens to come to Azerbaijan and the Azerbaijani citizens will enjoy the same opportunities in traveling to Pakistan. The president further said the sides also had discussions on the opening joint pharmaceutical enterprises in Azerbaijan. Ilham Aliyev said this sphere is very developed in Pakistan, noting that Azerbaijan wants to develop this sphere too, as it is mainly dependent on imports.

Ilham Aliyev also said the current ties between the two countries are very important for regional security and cooperation. The president said he believes that transportation is one of the issues to be dealt with in the future by the two countries, as the new transportation projects implemented by Azerbaijan jointly with its neighbors will create new opportunities for transportations from Asia to Europe and from north to south, and will open new routes.

During his meeting with President of Azerbaijan, the PMN of Pakistan believed that regional and global issues should be resolved through international law, peace and dialogue. He reaffirmed Pakistan’s commitments for peace and principles of development for the sake of peace. The prime minister supported early resolution of Armenia-Azerbaijan Nagorno-Karabakh conflict.

Many issues, including regional and international ones, were discussed during the Pakistani delegation’s meetings he added.

The PM also praised Azerbaijan’s support to Pakistan’s position on the Kashmir conflict, on its settlement through dialogue and peace in accordance with the relevant UN Security Council resolutions. He also expressed confidence that this mutual support will remain unchanged until the two conflicts are completely solved. The Prime Minister said the mutual support between Pakistan and Azerbaijan on the issues of Kashmir and Nagorno-Karabakh testified to the close understanding of common views.

“During the meetings, both the countries agreed to develop relations in the diverse fields of economy, investments, trade, energy, defense, agriculture, industry, science, culture and others related sub-sectors”.

Both leaders emphasized to increase trade volumes between the two countries and agreed to boost it. The two sides also agreed to continue their cooperation on international arena, within the UN, Organization of Islamic Cooperation and the Economic Cooperation Organization.

Concluding Remarks
The Republic of Azerbaijan has celebrated its 25^th national day, during the last 25 years it achieved great socio-economic prosperity, political stability and above all sustainability which have enabled it to maintain high ratios of GDPs. It is 75 percent of South Caucasus. It introduced market economy, economic liberalization and privatization which motivated private sector to lead. It attracted more than $200-250 billion FDIs in the country, the highest in the region.

The Leadership of H.E. Heydar Aliyev and President H.E. Ilham Aliyev played a crucial role in the socio-economic development of the country. Devotion to secularism, mutual respect, modernity, education, and strong macro-economic conditions played very important role in the democratic transformation of its society. Now, it has become a role model for higher education (literacy rate is 99.8 percent), good governance, political steadiness and sustainable socio-economic development in the region and around the globe. Many latest reports of the regional think-tanks, working groups, monetary agencies and financial institutions, all speak highly about the good performance of Azerbaijan’s socio-economy, pragmatic foreign policy, commercial diplomacy, vivacious society and above all high level of political maturity, essential for achieving all factors of survival, production and success.

Historically, during (1918- 1920), the Azerbaijan Democratic Republic granted political rights to all citizens regardless of ethnic origin, religion, class, profession, or sex. Azerbaijan was the first Muslim country to enfranchise women, two years before the U.S. Unfortunately the USSR invasion in 1920 snuffed out Azerbaijan’s nascent democracy, subjecting it to Soviet rule for 70 years. Nonetheless, that brief experience with self-created democracy remains an inspiration to the democratic aspirations of contemporary Azerbaijanis.

The State Program of Socio-Economic Development of the Regions of Azerbaijan (2009-2013), the State Program of Poverty Reduction and Sustainable Development of the Republic of the Azerbaijan, the State Program of Ensuring Reliable Population in the Republic of Azerbaijan in food provision (2008-2015) and other projects further diversified its economy and society which maintained its social fabric in most favorable conditions despite even in the ongoing global economic recession and financial crunch.

It geared short-term economic development through reduction of poverty, creation of employment, careful mobilization of resources along with upholding of social justice. It achieved long-term and dynamic development by forming a sustainable national economic system based at the principles of free market relations. It efficiently utilized the existing natural reservoirs which integrated its national economy into the world economic system.

Azerbaijan diversified but integrated efforts towards human rights protection, democracy and transparency have been appreciated in the world. It has become a prominent role model for Muslim-majority nations seeking to manage religious and ethnic differences in a harmonious and productive manner.

High levels of peace and tolerance is achieved because of its secular policies. Azerbaijanis have accrued substantial soft power as an attractive Muslim model for aping by other countries. Rigorous commercial diplomacy, progressive vision and diligence also helped Azerbaijanis overcome their post-Soviet distress and perfidious neighborhood to emerge as an influential force for religious, economic, and other forms of cooperation in the days of conflicting realities of socio-economy, geo-politics and geo-strategic scenarios. Its soft power, secular governance, Western orientation, and independent energy, economic, and security policies have secured its importance in the region and at international stage of power politics.

Azerbaijan has stable politics and strong political leadership. As the beneficiary, the public security and social order in Azerbaijan are quite satisfactory even in comparison with some European countries. Strong political leader and stable social order is always the precondition of economic development, and this law has been testified by the experiences of successful eastern Asian economies like Taiwan of China. The strong political leadership of Azerbaijan has achieved a miracle totally transforming its economy, politics, society, judiciary, laws, administration, education, foreign policy, exports, industrialization and its human capital. Ilham Aliyev strategic vision has successfully transformed the shores of Azerbaijan into hub of energy resources. Now migratory birds of FDIs are crisscrossing their eggs in the nets of Azerbaijan. Now, the chill of Europe is dependent upon the smooth supplies of its energy resources. Ilham Aliyev has also made it regional commercial center and bridge to many regional and transactional countries.

During the last decade, besides, the opening of new industries/corporations and job creation in the non-oil sector, the extraordinary development of the manufacturing, transport and utilities infrastructure, the establishment of modern social facilities, including educational, health and sports institutions laid the foundation for the country’s all-round development in the said period.

Azerbaijan’s Constitution was passed in 1995 and laid the foundation of building of the national state. It played an important role in development all structures and institutions of the modern state. Referendums held on August 24, 2002, March 18, 2009 and September 26, 2016 for making amendments into certain articles of the Constitution contributed to the improvement of the state building system. It is a purely democratic country where elections have been held on time and on regular basis. 

Due to visionary leadership the society is tolerant and free from any chauvinism, the political system is matured enough to rheostat any shock while the economy is strong, stable and sustainable, a major tool meeting the demands of its people. The building of a democratic society and a system of transparent public relations has been the key direction of state policies in the years of independence. During the last decade political pluralism has been nurtured as the necessary foundation of sustainable progress. Effective legal and democratic conditions have been institutionalized in the realms of political parties. A total of 55 political parties are registered in Azerbaijan, of which 11 are represented in parliament.

Commercial diplomacy has achieved high levels of strategic cushion. High levels of exports, inflows of FDI and joint ventures are the few examples of its rigorous commercial diplomacy. President’s pragmatic foreign policy has minimized foreign reliance. Its strong military is ready to respond any external aggression.

Better public health care and medication have been one of the salient features in the past decade. More than 650 million manats were allocated. Over 400 medical institutions have been built or renovated in the vast majority of Azerbaijani districts in the last 10 years. All of these have been fitted with state-of-the-art equipment and technology.

In Azerbaijan religion is sacred but rituals are not allowed to dominate on others faiths and factions. Discrimination is a bygone story and constructive dialogue among the different civilizations and cultures are commonly welcomed in every part of the Azerbaijan. Doves of harmony, peace and progress are flying high in order to take apart ill designs of the Hawks. Social security, better education and creation of employment are the salient features of Ilham Aliyev. Respect for the humanity, political indifference and high levels of transparency, accountability and corruption free doing business facilities have made Azerbaijan, an ideal destination of FDI and joint ventures. Due to his people- and societal-friendly policies, civil society is strong, vigilant and participatory. More than 2,700 NGOs are working in the fields of human rights, education, health, economics, social issues, environment, gender, etc.

Bilateral relations between Azerbaijan and Pakistan were established 20 years ago and now both are strategic partners. The Pak-Azerbaijan friendship was founded by two great leaders of the two countries, Heydar Aliyev and Benazir Bhutto. Both countries had cultural, social, religious and civilizational ties through famous Silk Route in the past and caravans from both regions used this route extensively for trading purpose. Now, a corner of Azeri culture has been established in Lok Versa in Islamabad and Azeri students are studying in Pakistan. Pakistani student are also taking education in Azeri institutions. These bonds will be further strengthened.

Right from the beginning, the governments and the political leaderships of the two countries have been keen to further develop and consolidate the bond of friendship. Both shared commonality of opinion on different regional and international issues and had supported each other on challenges faced by them. Pakistan and Azerbaijan need to take effective measures to enhance their bilateral trade ties by increasing communication linkages and elimination of travel restrictions.