Pakistan and Azerbaijan Forge $2 Billion Investment Pact to Boost Bilateral Ties
In a bid to bolster their economic relationship, Pakistan and Azerbaijan have recently reached an agreement to enhance bilateral investment to a whopping $2 billion. This pivotal decision was reached following a round of discussions between Prime Minister Shehbaz Sharif of Pakistan and President Ilham Aliyev of Azerbaijan at the esteemed Presidential Palace in Baku. The talks, held on a crisp Monday morning, emphasized the importance of fostering mutually beneficial projects and deepening economic cooperation between the two nations.
Strengthening Ties and Enhancing Economic Cooperation
During a joint news conference, Prime Minister Sharif underscored the unity of all political parties in Pakistan in their joint endeavor to fortify relations with Azerbaijan. He articulated the vision of expanding the warm diplomatic ties shared by the two countries to encompass a robust economic partnership. Prime Minister Sharif exuded confidence in the Memorandums of Understanding (MOUs) inked during the visit, alongside the anticipated agreements slated for April, as pivotal contributors to future economic growth and shared prosperity.
Moreover, Prime Minister Sharif emphasized the significance of augmenting defense collaboration between Pakistan and Azerbaijan, noting the mutual commitment to co-manufacture defense equipment—a move with wide-ranging implications. He also extolled Azerbaijan’s suggestion for an international infrastructure corridor, citing Pakistan’s Gwadar Port as a potential linchpin in facilitating trade and invigorating the regional economy.
Landmark Agreements to Catalyze Cooperation
The official visit of Prime Minister Shehbaz Sharif to Baku witnessed the signing of a slew of agreements aimed at fortifying collaboration across various sectors, including trade, energy, tourism, and education. The signing ceremony, graced by PM Shehbaz and President Aliyev, ensued after a series of bilateral discussions and delegation-level talks that centered on broadening the scope of ties between the two nations.
A standout agreement from the signed pacts involves an MOU between Azerbaijan’s State Oil Company (SOCAR) and Pakistan’s Frontier Works Organization (FWO) and Pakistan State Oil (PSO) to collaborate on the Machike-Thallian-Tarujabba White Oil Pipeline Project. Furthermore, SOCAR entered into separate MOUs with Pakistan Refinery Limited (PRL) and PSO to amplify energy cooperation, encompassing the trade of LNG cargoes and petroleum products.
Another notable agreement was inked to amend the prevailing framework for LNG trade, enabling Pakistan LNG Limited to fortify its energy supply chain through Azerbaijani resources. In a bid to foster cultural and economic bonds, an MOU was exchanged between the foreign ministers of both countries, establishing collaboration between Nakhchivan—an autonomous city in Azerbaijan—and Lahore. This pact seeks to bolster cooperation in various domains such as culture, tourism, education, urban development, economy, and science and technology.
Prior to the signing ceremony, PM Shehbaz was accorded a ceremonial guard of honor at the Zagulba Presidential Palace in Azerbaijan. President Aliyev extended a warm welcome to the Pakistani premier, marking the occasion with the rendition of both countries’ national anthems before a formal reception by the Azerbaijani armed forces.
