Pakistan and Azerbaijan Sign $2 Billion Investment Agreement
Pakistan and Azerbaijan have signed an agreement for a $2 billion investment by Azerbaijan into diverse sectors of Pakistan's economy. The deal was inked on the sidelines of the Economic Cooperation Organisation (ECO) summit in Khankendi, Azerbaijan, and witnessed by Prime Minister Shehbaz Sharif and President Ilham Aliyev. This move aims to significantly boost economic and trade relations between the two countries, building upon their existing robust defence cooperation and deepening their strategic partnership.
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Key sectors expected to benefit include trade, energy, water resource management, and glacier conservation. Notably, Azerbaijan’s State Oil Company (SOCAR) signed a memorandum to collaborate on Pakistan’s Machike-Thallian-Tarujabba White Oil Pipeline Project, which is strategic for energy security and efficient oil transportation.
The ECO summit provided a high-profile platform for both countries to formalize agreements, strengthening their economic ties and enabling direct engagement between their leaders. The summit also focused on regional cooperation, sustainability, and climate resilience, aligning with the broader goals of Pakistan-Azerbaijan collaboration.
The agreement expands on existing defense and diplomatic ties by deepening economic collaboration. Recent years have seen multiple agreements, particularly in trade and energy, and the new investment marks a shift towards a multifaceted strategic partnership with tangible mutual economic benefits.
The deal signals increased foreign investment and confidence in Pakistan’s economic potential, potentially enhancing energy infrastructure, trade volume, and job creation. If implemented successfully, it could further attract international investors and promote sustainable growth in line with Pakistan’s development goals.