BAKU, Azerbaijan, February 25. Azerbaijan and Pakistan have long maintained a strong and strategic partnership, underpinned by political, economic, and military cooperation. Their relationship is built on mutual support in international forums, shared regional interests, and historical ties. The recent visit of Pakistani Prime Minister Shehbaz Sharif to Baku has further solidified this bond, opening new avenues for collaboration in key sectors, particularly energy, defense, and trade.
Energy cooperation remains a cornerstone of Azerbaijan-Pakistan relations, with both countries making significant strides in strengthening this partnership. Pakistan has relied on Azerbaijani oil and gas supplies for years, and as Azerbaijan seeks to expand its export markets, its leadership places great importance on deepening ties with Islamabad in this sector.
During Sharif’s visit, Azerbaijan’s State Oil Company (SOCAR), which has been a long-term partner of Pakistan, signed several agreements with its Pakistani counterparts. These include contracts for the supply of petroleum products and the sale and purchase of liquefied natural gas (LNG) cargoes. One of the most notable developments was the extension of the LNG framework agreement for another two years and the establishment of a trading company to facilitate LNG transactions. This marks a major milestone in Azerbaijan’s growing role as an energy supplier to South Asia.
Beyond energy, military and defense collaboration has emerged as a critical aspect of Azerbaijan-Pakistan relations. Following high-level negotiations between President Ilham Aliyev and Prime Minister Shehbaz Sharif, both sides agreed to expand cooperation in this domain, including the prospect of joint defense production.
Recognizing Pakistan’s well-developed defense industry and Azerbaijan’s increasing capabilities in the sector, President Ilham Aliyev highlighted the potential for joint manufacturing of defense equipment. "We already export defense industry products to more than 30 countries. With the joint manufacturing, I think the geography of our supplies - export supplies - will definitely grow," President Ilham Aliyev stated.
Prime Minister Sharif echoed this sentiment, emphasizing the need to elevate defense cooperation to a higher level. "We must have joint defense production capacity, and this is an absolute commitment on both sides," he declared.
Another critical area of Azerbaijan-Pakistan cooperation is transport and regional connectivity. Azerbaijan has significantly enhanced its transit capabilities in both the North-South and East-West corridors, making it a vital hub for regional trade. Pakistan, looking to capitalize on these opportunities, is expected to integrate its connectivity plans with Azerbaijan’s existing transit infrastructure.
President Ilham Aliyev underscored the importance of this collaboration, noting that establishing direct transportation links between the two nations would create new economic opportunities. "Necessary instructions have been given to members of our team responsible for the transportation sector to look at the broader picture of regional cooperation and how to establish contacts between our ports, our railroad officials, and, in general, between our transportation companies," the President said.
By leveraging Azerbaijan’s position as a transit hub, Pakistan can strengthen its trade ties with Central Asia, the Caucasus, and Europe, expanding its economic footprint beyond South Asia.
Azerbaijan and Pakistan have set an ambitious goal of increasing bilateral trade to $2 billion - a significant leap from the current level of just over $20 million. While this target presents challenges, the recent agreements indicate that both nations are committed to making this goal a reality.
To facilitate trade, Azerbaijan has established the Azerbaijan Chamber of Commerce in Islamabad. Prime Minister Sharif has proposed creating a corresponding Pakistan Chamber of Commerce in Baku to enhance real-time trade and investment cooperation. "These chambers can really, in real time, collect information, exchange this information, and pass it on to potential traders and investors, which will be very helpful," he noted.
Moreover, Azerbaijan has announced plans to invest $2 billion in Pakistan’s economy, particularly in the energy and infrastructure sectors. Sharif further revealed plans to establish a permanent Information Bureau to streamline trade and investment efforts between the two countries. "This will be extremely helpful. I think this mechanism should be put in place from our side," he stated.
The strengthening of Azerbaijan-Pakistan relations signals a shift toward deeper strategic cooperation. As both nations move forward with ambitious plans in energy, defense, trade, and connectivity, they are positioning themselves as significant regional players.
The agreements signed during Sharif’s visit not only reinforce bilateral ties but also enhance Azerbaijan’s and Pakistan’s roles on the international stage. With a solid foundation in place and a shared vision for the future, both countries are poised to transform their partnership into a model of successful regional cooperation.