PRIME Minister Shehbaz Sharif’s recent visit to Azerbaijan marks yet another step in the growing alliance between the two nations.
This diplomatic engagement is particularly significant as it comes during his second tenure as Prime Minister and follows President Ilham Aliyev’s recent visit to Pakistan.
With a series of agreements signed and commitments made, the bilateral relationship between Pakistan and Azerbaijan is evolving beyond formal diplomacy into a strategic partnership rooted in economic collaboration and regional cooperation.
Pakistan and Azerbaijan have long enjoyed a close bond, shaped by historical ties, shared Islamic heritage and mutual support on key international issues. Azerbaijan has been one of Pakistan’s strongest allies in supporting its stance on Kashmir, while Islamabad has consistently backed Baku on the Nagorno-Karabakh issue. This alignment has paved the way for deeper economic and strategic cooperation, with recent agreements reflecting the ambition of both nations to move towards a more substantial partnership.
Azerbaijan has committed to investing up to $2 billion in Pakistan’s infrastructure, energy and mining sectors—one of the largest foreign direct investment (FDI) commitments in recent years. For a country grappling with economic challenges and an urgent need to stabilize its foreign exchange reserves, this investment offers much-needed relief. Pakistan’s economy, which grew at just 1.7% in 2023, is in dire need of foreign capital and Azerbaijan’s commitment signals confidence in Pakistan’s long-term economic potential. This investment is a golden opportunity for Pakistan to turn the tide and inject fresh energy into its struggling economy.
Another critical development is the amendment to the existing Liquefied Natural Gas (LNG) framework agreement, which allows Pakistan to procure LNG cargoes from Azerbaijan as needed. With Pakistan importing nearly 30% of its total energy needs, this agreement ensures greater flexibility in securing energy resources, reducing dependency on spot market fluctuations that often lead to price hikes and shortages. Pakistan’s energy shortfall has reached alarming levels, with power outages affecting businesses and industries—making this agreement a timely intervention. It’s a case of striking while the iron is hot, as both nations leverage their strengths to meet each other’s needs.
The defence sector is another area where cooperation is gaining momentum. Azerbaijan has expressed strong interest in expanding its defence collaboration with Pakistan, particularly in acquiring JF-17 Block III fighter jets and other military equipment. With an annual defence budget exceeding $3 billion, Azerbaijan is keen to strengthen its military capabilities and Pakistan’s defence industry stands to benefit from this partnership. The potential for joint manufacturing in defence industries could be a game-changer, boosting Pakistan’s defence exports and strengthening Azerbaijan’s defence infrastructure. The two nations are not just talking the talk; they are walking the walk by translating diplomatic goodwill into tangible cooperation.
The strengthening of Pakistan-Azerbaijan relations has not been a one-way street. President Ilham Aliyev’s visit to Pakistan in July 2024 set the stage for deeper cooperation, leading to multiple agreements in trade, energy and defence. The upcoming visit of President Aliyev to Pakistan in April 2025 is expected to further solidify these ties, particularly in operationalizing the $2 billion investment and enhancing trade mechanisms. Given Azerbaijan’s rising stature as a regional energy powerhouse, Pakistan stands to benefit from increased collaboration in the oil and gas sector. This relationship is fast becoming a two-way street, with both nations bringing something valuable to the table.
Further strengthening ties, Pakistan and Azerbaijan reaffirmed their commitment to enhancing cooperation in trade, energy, air connectivity and people-to-people exchanges during a high-level meeting between Pakistani President Asif Ali Zardari and Azerbaijan’s Minister of Defence Industry, Vugar Mustafayev. The minister, who visited Islamabad with his delegation, conveyed President Ilham Aliyev’s warm wishes and emphasized Azerbaijan’s keen interest in expanding business, cultural and defence cooperation with Pakistan.
During the meeting, the Pakistani President underscored the importance of deepening cultural linkages and boosting tourism. The recent operationalization of direct flights between Pakistan and Azerbaijan has already shown promising results, with over 72,000 Pakistanis visiting Azerbaijan in 2024—a 25% increase from the previous year’s 55,000 travellers. Such developments not only enhance economic and business ties but also foster greater mutual understanding between the people of both nations.
Beyond economics and defence, the geopolitical implications of this partnership cannot be overlooked. Azerbaijan, as the chair of the Non-Aligned Movement (NAM) and an influential member of the Organization of Islamic Cooperation (OIC), is a key player in global diplomacy. Strengthening ties with Azerbaijan allows Pakistan to expand its diplomatic reach, especially in forums where it seeks to amplify its stance on key issues, from Kashmir to counterterrorism. In the ever-changing game of international politics, Pakistan and Azerbaijan are playing their cards right by aligning their strategic interests.
The challenge now lies in ensuring that these agreements are implemented effectively rather than remaining symbolic gestures. Bureaucratic inefficiencies and policy inconsistencies have often hindered foreign investments in Pakistan and both governments must work to ensure smooth execution. Similarly, while trade volumes between the two countries have increased, they still fall short of their potential. In 2023, bilateral trade stood at just $82 million—a fraction of what could be achieved given the economic complementarities between the two nations. It’s high time both countries put their money where their mouth is and translate agreements into action.
People-to-people connections must be prioritized to further strengthen the Pakistan-Azerbaijan partnership. The recent MoU between Punjab and the Nakhchivan Autonomous Republic offers a promising foundation for collaboration in tourism, education and business. Educational exchanges, cultural programs and direct flights can enhance ties at a grassroots level. A strong partnership goes beyond government agreements; it’s about fostering mutual understanding between people. If both nations stay on track, they can set a powerful example of how regional powers can leverage their strengths for sustainable development. The agreements signed today will shape this partnership’s future, but execution is key to turning potential into lasting success.
—The writer is a Strategic Communication Expert, Global Climate Youth Activist and Chairman of the Belt and Road Initiative for Sustainable Development (BRISD).
(qaisernawab098@gmail.com)
