BAKU, Azerbaijan, June 16. Throughout the past three decades, Azerbaijan and Pakistan have nurtured a robust and amicable interstate relationship, which has evolved into a strategic alliance. This alliance rests on a foundation of mutual comprehension and collaboration on diverse global matters.
High-level visits between the two nations have been frequent, which has further strengthened their bilateral relations. Thus, the visit of Pakistani PM Shehbaz Sharif to Azerbaijan on June 15 is a remarkable milestone that is poised to greatly expedite the advancement of bilateral relations across diverse domains, highlighting its profound significance.
The relationship between Azerbaijan and Pakistan is characterized by strong political, economic, and cultural ties. The two countries enjoy a warm and friendly relationship, which is based on shared values, common interests, and mutual respect.
As President Ilham Aliyev pointed out, while making press statements with Pakistani PM, the relations between the two countries are relations, which are based on mutual history, culture, traditions, religion, solidarity and mutual support.
“We are very grateful to Pakistan for support to Azerbaijan during the times of occupation and during the 44 days of Patriotic War of 2020. People of Azerbaijan know very well, who was with us during the times of 44 days war - it was Türkiye and Pakistan, which expressed a strong political support to us,” President Ilham Aliyev said.
Political relations between Azerbaijan and Pakistan have been cordial and cooperative. Both countries have supported each other on various international issues and have maintained close diplomatic ties. One important aspect of the Azerbaijan-Pakistan relationship is their shared support for each other's territorial integrity and sovereignty. For instance, Azerbaijan has been supporting Pakistan in regard with the Kashmir issues, while Pakistan has always expressed its solidarity with Azerbaijan by not establishing diplomatic relations with Armenia.
Economically, Azerbaijan and Pakistan have been exploring opportunities for trade and investment. They have signed several agreements to enhance economic cooperation, particularly in sectors such as energy, agriculture, and infrastructure development. Trade relations between Azerbaijan and Pakistan have witnessed steady growth in recent years. Bilateral trade has expanded, encompassing a range of goods such as textiles, pharmaceuticals, machinery, and agricultural products.
Both countries are also keen on expanding their trade relations and have been exploring avenues for increased bilateral trade. In this regard, the two countries plan to sign a mutual agreement to diligently strengthen the bilateral trade. As a first step, Azerbaijan and Pakistan will be signing a Memorandum of Understanding to initiate this process and begin compiling a comprehensive list of items to be included in the preferential trade arrangement.
Energy cooperation is a significant aspect of the economic partnership between Azerbaijan and Pakistan. Azerbaijan, as an energy-rich country, has the potential to export oil and gas to Pakistan. The two countries have explored avenues for energy collaboration, including the possibility of pipeline projects and LNG imports.
The Economic Coordination Committee (ECC) of the Pakistani Cabinet has already granted approval for a framework agreement concerning the import of LNG from Azerbaijan. The agreement will be executed through government-to-government trading, facilitated by Pakistan LNG Ltd (PLL), a state-owned company.
To ensure a consistent supply of LNG, the ECC has instructed the Ministry of Petroleum to assess Pakistan's LNG requirements on an ongoing basis, providing at least three months' prior notice.
Initially, the agreement will be valid for one year, with the option of a one-year extension. Azerbaijan's state oil company, SOCAR, will supply one LNG cargo per month under this agreement. The offer for each cargo will be made 45 days before the relevant delivery window, and PLL will have a specified period to accept or reject the offer. The pricing of LNG will be denominated in US dollars and determined by SOCAR, that will present the pricing details to PLL.
As PM Sharif noted in his press statement, Azerbaijan is rich in natural resources, including major oil and gas resources.
“Azerbaijan has this wealth, and we want to cooperate with Azerbaijan also in the field of petrochemicals. We are currently negotiating with Saudi Arabia's “Aramco”, and we would be very happy if Azerbaijan could join this issue and take over a part of the money we are spending on this field as investment,” he added.
Furthermore, Azerbaijan and Pakistan have also focused on enhancing connectivity and transportation links. As President Ilham Aliyev noted in his joint press statement with Pakistani PM, the two countries have agreed on increasing the number of flights between the cities, including between the capital cities – Baku and Islamabad. This step is set to particularly increase trade and tourism cooperation between the two countries.
Azerbaijan and Pakistan share a deep bond of friendship and cooperation, which continues to grow stronger with time. Their relationship is characterized by mutual trust, collaboration, and a shared vision for regional peace and development. Under the leadership of President Ilham Aliyev, Azerbaijan has successfully captured the attention of numerous stakeholders within the broader region. With a focus on the oil and gas sector and the establishment of crucial transport corridors, the country has leveraged these factors to reap substantial economic and political benefits from ongoing geopolitical developments, both regionally and globally. In pursuing these benefits, Pakistan does not stay aside. Both the two countries continue to strengthen their economic cooperation through various initiatives and joint endeavors. They recognize the importance of expanding trade, fostering investments, and exploring new avenues for economic collaboration, ultimately aiming to deepen their economic ties and mutual prosperity.