Pakistan, Azerbaijan Ink MoUs For Enhanced Cooperation
Pakistan and Azerbaijan have formalized multiple cooperation agreements across various sectors, marking a substantial advancement in bilateral relations between the two nations. The agreements were exchanged during Prime Minister Shehbaz Sharif’s two-day official visit to Azerbaijan, where he met with President Ilham Aliyev.
New Era In Economic Relations
The most notable outcome of the discussions was Azerbaijan’s commitment to invest $2 billion in Pakistan, announced during the joint media briefing following bilateral talks. Prime Minister Shehbaz Sharif expressed his gratitude for this investment pledge, describing it as a “quantum jump” in trade and investment relations that will serve as a “huge reflection of our fraternal ties.”
Both leaders acknowledged that previous economic engagement did not reflect the true potential of their relationship. President Aliyev noted that bilateral trade currently amounts to only “several tens of million of US dollars,” emphasizing the need for significant improvement. The leaders have set an ambitious one-month timeline to finalize all projects and agreements, with formal signings planned during President Aliyev’s visit to Pakistan in April 2025.
Strategic Cooperation in Energy Sector
The energy sector emerged as a key focus area for collaboration, with multiple agreements signed between state entities:
- The State Oil Company of Azerbaijan Republic (SOCAR) and Pakistan’s Frontier Works Organisation (FWO) and Pakistan State Oil Company Limited will collaborate on the Machike-Thallian-Tarujabba White Oil Pipeline Project
- SOCAR and Pakistan Refinery Limited (PRL) signed a memorandum for future cooperation
- An amendment to the Framework Agreement for the Sale and Purchase of LNG cargoes was finalized
- Pakistan State Oil and SOCAR Trading SA established terms for petroleum products trade
These energy partnerships are expected to enhance Pakistan’s energy security while providing Azerbaijan with an expanded market for its petroleum resources.
Expanding Cooperation Across Multiple Domains
The agreements extend beyond energy to include cooperation between Nakhchivan (Azerbaijan) and Lahore (Pakistan) in culture, tourism, urban development, education, economy, and science and technology. The high-level Pakistani delegation, including Deputy Prime Minister and Foreign Minister Ishaq Dar and several cabinet ministers, participated in the Pakistan-Azerbaijan Business Forum to explore business-to-business collaboration opportunities.
This comprehensive approach to bilateral relations underscores the shared commitment to deepening ties based on common values and regional aspirations. With concrete projects now under evaluation and formal agreements expected within weeks, the Pakistan-Azerbaijan relationship appears poised for unprecedented growth in 2025 and beyond.
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