ISLAMABAD: Pakistan and Azerbaijan are moving to convert their strong diplomatic ties into concrete economic cooperation, with Baku showing readiness to invest nearly $2 billion in Pakistan, particularly in the energy and extractive sectors, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb said on Tuesday.
In an interview, the finance minister noted that bilateral relations—especially with Azerbaijan—have strengthened since the current government took office, supported by frequent high-level engagements. These include visits by Prime Minister Muhammad Shehbaz Sharif and Pakistan’s participation in international engagements around the COP29 timeframe in Baku.
Aurangzeb said the emphasis has now shifted toward boosting trade and investment, identifying energy, oil and gas, minerals and mining as priority areas for joint ventures. “These are clear areas of focus as we move forward,” he said.
Elaborating on the proposed investment package, the minister disclosed that talks are underway with Azerbaijan’s state oil company SOCAR, which is exploring the possibility of investing in an oil pipeline project in Pakistan. While discussions are still at an early stage, he expressed optimism that the project could be among the first to materialise.
On Azerbaijan’s willingness to extend an additional $1 billion in financing to Pakistan, Aurangzeb said the support could be structured in several ways, including placements with the State Bank of Pakistan or financial backing for Azerbaijani investors undertaking projects in the country.
He acknowledged that current bilateral trade, standing at less than $50 million, falls far short of potential, adding that both sides are working to identify priority sectors to ensure trade and investment flows become more substantive and sustainable.
