Political

The close relations between Azerbaijan and Pakistan are driving the development of cooperation in various fields.

Relations between Azerbaijan and Pakistan

In an interview with APA, Sabina Salmanova, a member of the Milli Majlis and the Azerbaijan-Pakistan Parliamentary Relations Working Group, evaluated the relations between Azerbaijan and Pakistan as a vivid example of friendship, brotherhood, and strategic partnership:

"The relations between Azerbaijan and Pakistan are based on the principles of friendship, brotherhood, and strategic partnership. These relations have been strengthened by historical, cultural, and political factors, and have created deep bonds between the two peoples."

Qaiser Nawab, the President of the Pakistan-Azerbaijan Alumni Association in his interview with APA, stated that the relations between Pakistan and Azerbaijan are a manifestation of lasting friendship, mutual respect, and shared strategic interests: 

"The Pakistan-Azerbaijan friendship is more than just a diplomatic relationship; it is a bond rooted in shared values, mutual respect, and a common vision for a prosperous future. Prime Minister Shehbaz Sharif’s visit to Azerbaijan is a testament to the commitment of both nations to strengthening their ties across multiple domains. With expanding trade relations, strategic defense partnerships, and growing cultural exchanges, the future holds immense potential for even greater collaboration."

Importance of the reciprocal visits

The expansion of Azerbaijan-Pakistan relations serves the common interests of both states. Frequent visits at the level of presidents and prime ministers are a clear manifestation of the friendly relations between the countries.

On February 24, Azerbaijani President Ilham Aliyev also emphasized the importance of reciprocal visits in his joint statement with Pakistan's Prime Minister Muhammad Shehbaz Sharif to the press:

"My dear brother, welcome to Azerbaijan. Our regular contacts have led to a closer partnership relations between the two brotherly countries. Mr. Prime Minister visited us last year and in 2023, and I visited Pakistan on a state visit last year, and today my dear brother is in Azerbaijan on a state visit. So, this dynamic actually demonstrates the close ties between our countries. Today, we discussed very important issues of our bilateral agenda, once again stress the importance of the close partnership between our countries, reaffirm the strategic importance of our cooperation for both countries, the peoples of our countries, and the regions we represent."

Pakistan's Prime Minister Muhammad Shehbaz Sharif also emphasized in his statement to the press that Azerbaijani President Ilham Aliyev's visit to Pakistan has elevated the brotherly relations between the two countries to a new level:

"Your Excellency, your visit to Pakistan last time took our brotherly relations to a different level and strengthened these cordial relations."

Azerbaijan and Pakistan support each other's just issue

Due to Armenia's occupation of Azerbaijani territories, Pakistan is one of the countries that has not established diplomatic relations with Armenia and has not recognized its independence until today. In 2022, the Pakistani Senate adopted a resolution condemning the Khojaly genocide. During the occupation period, the 44-day Patriotic War, and the subsequent processes, Pakistan has consistently demonstrated its support for Azerbaijan.

Azerbaijan, in turn, supports Pakistan's position on the Jammu and Kashmir issue. The official stance of Baku on the Jammu and Kashmir issue is based on the peaceful resolution of this problem in accordance with the norms and principles of international law, the relevant resolutions of the United Nations Security Council, and full respect for international humanitarian law.

President Ilham Aliyev also touched upon the issue of mutual support during his speech:

"As two brotherly countries, we will continue to support each other on all issues of international relations. We support each other on issues of sovereignty and territorial integrity of our countries. We actively cooperate within international institutions and always support each other in all organizations where we participate."

Pakistan's Prime Minister Muhammad Shehbaz Sharif thanked President Ilham Aliyev for the support shown by Azerbaijan:

"Your Excellency, thank you very much for your support for the people of Kashmir. You have always supported the cause of Kashmir without any political conditions or strings. It has been your hallmark, and your steadfast position, and we, the people of Pakistan, deeply appreciate this. I hope the resolutions passed by General Assembly and Security Council will be materialized one day soon through our collective efforts."

Economic relations between Azerbaijan and Pakistan

Member of the Milli Majlis, Sabina Salmanova, stated that serious efforts are being made to further expand cooperation in the field of economic and trade relations with Pakistan:

"Regular meetings at various levels, economic forums, conferences, and intergovernmental commission meetings have been held to expand economic relations. A number of important projects have been implemented and new initiatives have been proposed to increase trade turnover. Continuous discussions have been held to strengthen cooperation among entrepreneurs, improve the investment climate, and increase investments. It is no coincidence that in 2021-2022, Pakistan exported 9.7 million USD to Azerbaijan, and in 2022-2023, it exported 12 million USD. This is the result of the growing economic relations between our countries year by year. Furthermore, the exchange of documents signed on February 24 between the two countries, including the Memorandum of Understanding between the State Oil Company of Azerbaijan and the Pakistan State Oil Company Limited and Pakistan Refinery Limited (PRL), as well as agreements on the sale and purchase of liquefied natural gas and petroleum products, and the Memorandum of Understanding on cooperation in various fields, such as culture, tourism, urban planning, education, science, economy, and public life between the city of Nakhchivan in the Nakhchivan Autonomous Republic and the city of Lahore in Punjab Province of the Islamic Republic of Pakistan, indicates that the relations between the two friendly countries will continue to develop further in the future and new opportunities for cooperation will arise. In general, I believe that the documents signed during the official visit of Pakistan's Prime Minister Muhammad Shehbaz Sharif to Azerbaijan are of great importance and will contribute significantly to strengthening mutual cooperation." the MP emphasized.

Pakistani political expert Qaiser Nawab emphasized that economic cooperation forms the backbone of the two countries' relations: "Economic cooperation constitutes an important pillar of Pakistan-Azerbaijan relations. Trade between the two countries continues to rise steadily. Both sides are eager to explore new markets and opportunities. The Pakistan-Azerbaijan Business Forum held during Prime Minister Shehbaz's visit highlights the importance of promoting direct 'business-to-business' interactions. This initiative will play a significant role in strengthening economic activity by enabling the private sector to increase trade volume and investments. The future of Pakistan-Azerbaijan relations looks promising, as both countries are keen to explore new areas of cooperation. Emerging sectors such as information technology, renewable energy, and the digital economy offer exciting opportunities for collaboration. Azerbaijan's progress in technology and infrastructure development aligns with Pakistan's aspirations for digital transformation and innovation-driven growth."

Trade turnover and investment initiatives between Azerbaijan and Pakistan

The trade turnover between Azerbaijan and Pakistan is an indicator of the growing economic relations and strategic partnership in recent years. From 2020 to 2024, significant fluctuations were observed in the trade turnover between the two countries. Economic relations between Azerbaijan and Pakistan are mainly centered around energy, agriculture, pharmaceuticals, and textiles. The trade turnover between the two countries made up 13.283 million USD in 2020, but it decreased by 11.7% in 2021. In 2022, the turnover rose to 28.1 million USD. In 2024, this figure reached 22 million 48 thousand USD. The Preferential Trade Agreement (PTA) between Azerbaijan and Pakistan is currently under discussion. Once this agreement comes into force, it is expected that trade turnover will further increase.

Both countries are taking active steps in investment cooperation, implementing joint projects in various sectors, and strengthening economic ties.

2 billion USD investment from Azerbaijan in Pakistan's economy

President Ilham Aliyev, emphasizing that a significant part of the discussions with the Prime Minister of Pakistan was dedicated to commercial and economic sectors, also highlighted the importance of increasing the trade turnover between the two countries:

"We need to increase our trade turnover, and I think that we have a way how to do it - especially taking into account the plans of Azerbaijan to invest up to two billion U.S. dollars in Pakistan's economy, which actually was announced by me during my state visit to Pakistan last summer. Several months ago, we received concrete projects from the Pakistani side, and Azerbaijani representatives are evaluating them.

Today, with my brother, we set, I think, very ambitious but, at the same time, realistic targets to finalize all the discussions within one month and, by the beginning of April, prepare documents for signing. These projects cover infrastructure development areas, as well as energy, mining, and maybe some others.

The agreements that were signed today are not limited only to the ceremony we just witnessed now. Many agreements have already been signed with different audiences. So, the total number of agreements signed during the visit of Mr. Prime Minister is more than 10. They will create a good framework for future cooperation. With our investment plans, I'm sure we will also witness an increase in our trade turnover."

Investment brings dividends to both countries

Prime Minister Muhammad Shehbaz Sharif stated that the investment initiative of the President of Azerbaijan will bring dividends to both countries.

" I am extremely grateful to you for announcing that Azerbaijan intends to invest $2 billion in Pakistan in ventures, which are mutually beneficial and will bring dividends to both countries. I am extremely happy to say that, ever since, both teams have worked very seriously to achieve results on this behalf. I am so happy to hear this from you this morning that the two teams have done a lot of work. A deadline of one month has now been given to both sides to finalize all arrangements. In the month of April, In Sha Allah, once everything is discussed and decided, I'll be again deeply honored and extremely happy to receive you again in Islamabad in April to ink these agreements valued at $2 billion."

The Pakistani expert, speaking about Azerbaijan's intention to invest 2 billion USD in Pakistan's economy, emphasized that this significant investment is aimed at strengthening bilateral relations and stimulating economic growth in both countries.

This $2 billion investment commitment reflects the deepening strategic partnership between Pakistan and Azerbaijan. By focusing on these key sectors, both nations aim to achieve sustainable economic growth and strengthen bilateral ties.

Of fields in which investments wil be made

A substantial portion of the investment is expected to be allocated to the energy sector. Pakistan faces ongoing energy challenges, and collaboration with Azerbaijan, a nation rich in energy resources, could be pivotal in addressing these issues. The investment may encompass projects related to oil and gas exploration, development of energy infrastructure, and the supply of liquefied natural gas (LNG) to Pakistan. Such initiatives aim to diversify Pakistan’s energy mix and enhance energy security.

Development of infrastructure

Investment in infrastructure is another critical area of focus. Developing robust infrastructure is essential for economic development, facilitating trade, and improving connectivity. The $2 billion investment is likely to support the construction of roads, bridges, and possibly port facilities, enhancing Pakistan’s logistical capabilities. Improved infrastructure will not only bolster domestic economic activities but also strengthen regional trade links, benefiting both Pakistan and Azerbaijan.

Agriculture sector

The agriculture sector stands as a vital component of Pakistan’s economy, and investment here can lead to significant advancements. Potential areas of investment include modernizing agricultural practices, introducing advanced technologies, and developing agro-based industries. Such initiatives can increase productivity, ensure food security, and open new avenues for export, contributing to economic prosperity.

The processes lead to the conclusion that cooperation between Azerbaijan and Pakistan in various fields is gaining momentum.

Lamiya Shirinova

Ramiz Mikayiloglu

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