Türkiye and Pakistan could play a key role in transforming Alat into a technology hub – EXPERT

AZERTAC conducted an interview with Turkish political analyst and expert in foreign policy, security, and international relations, Engin Özer. He is the Director of the Ankara–Moscow Strategic Studies Center and a guest expert at leading analytical institutions in Türkiye, Central Asia, and the Middle East.

-Which sectors, in your opinion, are priorities for mutual investment between Azerbaijan, Türkiye, and Pakistan?

-In recent years, cooperation between Azerbaijan and Türkiye has significantly strengthened, particularly in the petrochemical industry. A vivid example of this is SOCAR Holding’s participation in the construction and modernization of oil refineries in Türkiye, which highlights the strategic nature of the bilateral partnership.

Given the growing demand for gas in Europe due to the war in Ukraine, new large-scale projects related to the transportation of Azerbaijani and Turkmen gas through Turkish territory may come to the fore.

At the same time, Azerbaijan is intensifying its foreign policy and economic strategy toward East Africa. The upcoming Türkiye–Africa Forum, set to be held in Baku next year with Azerbaijan as a co-organizer, will significantly accelerate the African expansion process.

In countries where Ankara’s political influence is increasing — such as Libya, Somalia, Sudan, and Syria — Azerbaijan and Türkiye may establish joint consortia and implement investment projects in the energy sector. The involvement of Pakistan in such initiatives would carry important strategic significance.

Considering the geostrategic positioning of Azerbaijan and Pakistan, both of which play key roles in China’s “Belt and Road” initiative, it is crucial to increase the volume of mutual trade. In this context, one of the primary tasks is to simplify the customs regime between the two countries.

-How do you assess the prospects for establishing a sustainable transport and logistics chain connecting Pakistan, Azerbaijan, and Türkiye? Is it feasible to create a direct route such as Karachi–Baku–Mersin or Karachi–Baku–Kars–Europe in the future?

-From a logistics perspective, connecting these three countries directly depends largely on the future of Iran. The implementation of a Karachi–Baku railway line is closely tied to political decisions made by both Iran and Azerbaijan. Given that Baku and Tehran are partners in the North–South Transport Corridor project, and that the conflict between Pakistan and India continues at a low intensity, the key issue lies in persuading Iran of the strategic value of its involvement.

An additional challenge is the possibility of a military operation against Iran and the potential destabilization of the region. In this context, the cooperation strategy initiated by President Aliyev with Iran’s President Pezeshkian appears both pragmatic and constructive. While current uncertainties delay the realization of the Karachi–Baku–Kars route, in the medium term, this project could very well return to the active agenda.

-What is Azerbaijan’s role as a bridge between Central Asia, South Asia, and Europe in the context of its partnership with Türkiye and Pakistan?

-Unlike other Central Asian countries, the relationship between Ankara and Baku has evolved from strategic cooperation to a full-fledged alliance. With the opening of the Zangezur Corridor, a significant increase is expected in trade volume, as well as in the level of economic and political interaction between Europe, Türkiye, Azerbaijan, and the Central Asian states.

Strengthening economic ties with Pakistan is largely possible through the expansion of logistics and transit cooperation involving Iran. At the same time, the new pragmatic engagement between the Taliban administration and Beijing could seriously impact regional logistics routes. This emerging process in Afghanistan deserves close attention from Azerbaijan, Türkiye, and Pakistan, as it has the potential to reshape the structure of the Middle Corridor within the framework of the Belt and Road Initiative.

-What steps could help transform the trilateral format into a full-fledged economic alliance with joint industrial zones, logistics hubs, and investment mechanisms?

-If the Baku administration succeeds in effectively integrating the Middle Corridor, the Baku–Karachi route, and the North–South Corridor, Azerbaijan could become a major logistics hub with access to Europe, Russia, Central Asia, China, and the Indian Ocean. The opening of the Zangezur Corridor would significantly reshape Azerbaijan’s transit-related revenues and expenditures in a positive direction by considerably increasing trade volumes.

As international experience shows, countries that become key transit hubs tend to achieve greater stability in their foreign relations and long-term development. In this context, Azerbaijan, as a member of the Non-Aligned Movement, can build balanced and mutually beneficial relations with the East, Europe, and Russia simultaneously — ensuring sustainable growth and prosperity in the region.

-What benefits and risks could arise from the possible involvement of Türkiye’s private sector in Azerbaijan’s industrial parks (for example, in the Alat Free Economic Zone)?

-The first step could be to simplify cargo transit and customs procedures among the three countries, as well as to reduce tariffs on certain categories of goods. Investment in the Alat Free Economic Zone is of particular importance. Türkiye and Pakistan could play a key role in transforming Alat into a technological hub, including by hosting defense companies working with advanced technologies.

The establishment of a high-tech institute and an industrial park focused on IT products and digital solutions within the framework of trilateral partnership would be a significant contribution to the technological development of the region.

Moreover, Pakistan, possessing the greatest experience in nuclear energy among the three countries, could initiate strategic cooperation with Baku and Ankara on the peaceful use of nuclear technologies for energy purposes. This would strengthen long-term cooperation and add further depth to the emerging alliance.

-How relevant is the creation of a coordination council on economy and logistics between Azerbaijan, Türkiye, and Pakistan? Could it evolve into an institution similar to the Intergovernmental Council of the Turkic Council or the SCO?

- The establishment of a coordination council on economy and logistics between Azerbaijan, Türkiye, and Pakistan appears to be a very timely and relevant initiative that could provide an additional institutional framework for trilateral cooperation. Such a body could coordinate efforts in trade and economic cooperation, synchronize logistics projects, and create a favorable environment for joint investments.

Within this framework, the creation of a joint investment fund is also possible, which would finance priority projects, especially in infrastructure, transport, energy, and high technology sectors. Although it is too early to speak about forming a full-fledged customs union, the medium-term goal of establishing a common economic space with unified trade and investment rules is quite realistic.

At this stage, the main priority should be the maximum simplification of processes such as the movement of people, visa regimes, and transport and transit procedures among the three countries. These areas require deeper elaboration and coordination, which could serve as the first step toward a broader economic alliance.