Pakistan, Azerbaijan Expand Strategic Partnership with Key Trade and Energy Deals
Pakistan and Azerbaijan have agreed to boost bilateral investment to $2 billion, marking a significant step in enhancing economic cooperation between the two nations. The decision was announced during Prime Minister Shehbaz Sharif’s official visit to Baku, where he met Azerbaijani President Ilham Aliyev at the Presidential Palace on Monday.
Commitment to Stronger Economic and Defence Cooperation
During a joint press conference, Prime Minister Shehbaz Sharif emphasized the shared commitment of Pakistan’s political leadership to strengthening ties with Azerbaijan. He expressed confidence that the Memorandums of Understanding (MoUs) signed during the visit, alongside additional agreements expected in April, will drive economic growth and mutual success.
Highlighting defence collaboration, PM Shehbaz stressed the importance of joint manufacturing of defence equipment, describing it as a milestone for both nations. He also backed Azerbaijan’s vision for an international infrastructure corridor, highlighting Pakistan’s Gwadar Port as a strategic hub for trade and regional economic expansion.
Key Agreements Signed in Energy, Trade, and Urban Development
The visit witnessed the signing of multiple MoUs and agreements aimed at strengthening cooperation in trade, energy, tourism, education, and urban development. Prime Minister Shehbaz Sharif and President Ilham Aliyev personally oversaw the signing ceremony following high-level delegation talks.
Major Agreements Signed:
Energy Cooperation: Azerbaijan’s State Oil Company (SOCAR) signed MoUs with Pakistan Refinery Limited (PRL) and Pakistan State Oil (PSO) to boost energy collaboration, including the sale and purchase of LNG cargoes and petroleum products.
Pipeline Project: SOCAR also signed an agreement with Pakistan’s Frontier Works Organization (FWO) and PSO for cooperation on the Machike-Thallian-Tarujabba White Oil Pipeline Project.
LNG Trade Framework: Both countries amended their existing framework for LNG trade, allowing Pakistan LNG Limited (PLL) to diversify its energy supply through Azerbaijani resources.
Cultural & Economic Ties: A memorandum of cooperation was signed between Nakhchivan (Azerbaijan) and Lahore (Pakistan), aiming to promote collaboration in tourism, urban development, economy, education, science, and technology.
Formal Reception and Strengthening Diplomatic Relations
Earlier in the day, Prime Minister Shehbaz Sharif was welcomed with a guard of honour at the Zagulba Presidential Palace in Baku. President Ilham Aliyev officially received the Pakistani premier as the national anthems of both nations played, symbolizing the strengthening diplomatic bond.
The leaders reaffirmed their commitment to deepening bilateral relations, emphasizing that the agreements signed will not only enhance economic and trade ties but also lay the foundation for long-term strategic cooperation.
Conclusion
With this $2 billion investment agreement, Pakistan and Azerbaijan have opened new avenues for collaboration across key sectors, including energy, trade, defence, and urban development. The visit marks a pivotal moment in Pakistan-Azerbaijan relations, reinforcing their shared vision for regional economic integration and strategic partnership.
