Pakistan and Azerbaijan have taken a major step toward bilateral investment, announcing plans to boost economic cooperation to $2 billion. During Prime Minister Shehbaz Sharif’s visit to Baku, both nations committed to strengthening their trade, energy, and defence partnerships. Agreements will be finalized in April, marking a new phase in their long-standing diplomatic and economic relationship.
Strategic Investment Agreements
Prime Minister Shehbaz met Azerbaijani President Ilham Aliyev in Baku to discuss expanding bilateral investment. Both leaders agreed to enhance economic cooperation through mutually beneficial projects.
“I am grateful for Azerbaijan’s decision to invest $2 billion in Pakistan,” PM Shehbaz stated during a joint press conference. He confirmed that a high-level Azerbaijani delegation will visit Pakistan in April to finalize and sign agreements.
Stronger Defence Collaboration
The two leaders also discussed defence cooperation. PM Shehbaz emphasized the need for joint defence production facilities, a key agenda item for the upcoming April meetings.
Azerbaijan has already strengthened military ties with Pakistan. In 2023, the country purchased JF-17 Block III fighter jets from Pakistan in a $1.6 billion deal. President Aliyev expressed satisfaction with the quality of Pakistan’s defence equipment and confirmed plans for further collaboration, including potential joint manufacturing of defence items.
Energy and Trade Expansion
Pakistan and Azerbaijan are focusing on energy cooperation. The State Oil Company of Azerbaijan Republic (Socar) has extended the LNG framework agreement with Pakistan by another two years. A trading company has also been established to enhance energy trade between the two countries.
Additionally, both nations signed a Memorandum of Understanding (MoU) to collaborate on the Machike-Thallian-Tarujabba White Oil Pipeline Project. These energy projects will contribute to Pakistan’s energy security and economic stability.
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Gwadar Port: A Trade Hub
PM Shehbaz highlighted Gwadar Port’s potential as a strategic hub for imports and exports. He stressed that improved connectivity between Pakistan and Azerbaijan would benefit the entire region.
“Our friendship extends from the warm waters of the Arabian Sea to the Caspian Sea. We will strengthen and expand this partnership,” he said.
Cultural and Economic Partnerships
Beyond trade and energy, both countries are working to boost cultural and urban development ties. An MoU was signed between Nakhchivan (Azerbaijan) and Lahore to enhance cooperation in tourism, education, urban planning, and the economy.
President Aliyev emphasized that trade turnover between the two nations must increase, calling for concrete steps to achieve this goal. He also praised PM Shehbaz’s leadership, acknowledging efforts to bring economic and political stability to Pakistan.
Business Forum and Future Cooperation
During the visit, PM Shehbaz and the Azerbaijani leadership will address the Pakistan-Azerbaijan Business Forum, encouraging stronger trade and investment ties.
The prime minister will also participate in delegation-level talks, focusing on climate change efforts, defence collaboration, cultural exchange, and economic growth.
President Aliyev will host a dinner reception in PM Shehbaz’s honor, marking a new chapter in Pakistan-Azerbaijan relations.
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