Islamabad – Pakistan and Azerbaijan have signed agreements and memorandums of understanding (MOUs) focused on trade and energy cooperation during a visit by Pakistani Prime Minister Shehbaz Sharif to Azerbaijan.
Sharif arrived in Baku on Sunday for a two-day visit, where he held discussions with Azerbaijani President Ilham Aliyev and other senior officials. According to a statement from the Pakistani prime minister’s office, the leaders worked on finalizing a portfolio of investments from Azerbaijan into Pakistan.
Aliyev had previously announced a $2 billion investment during his visit to Pakistan in July 2024. Sharif described this as a significant step in enhancing bilateral trade and economic ties.
This marks Sharif’s second visit to Azerbaijan since assuming office in February 2024. Aliyev is expected to sign final agreements for investment during a scheduled visit to Pakistan in April.
Agreements on Energy and Infrastructure
During the visit, Azerbaijan’s state-owned oil company, SOCAR, exchanged several MOUs with Pakistan’s oil trading and refining companies. Among the agreements was one concerning the completion of the Machike-Thallian-Tarujabba White Oil Pipeline Project, aimed at improving domestic oil transportation in Pakistan.
Both countries also signed updated agreements and MOUs related to the delivery of liquified natural gas (LNG) from Azerbaijan to Pakistan. Ahead of Sharif’s visit, Pakistan’s Economic Coordination Committee approved a three-year extension of the LNG Framework Agreement between SOCAR and Pakistan LNG Limited. Originally signed in 2023, the agreement allows Pakistan to procure LNG shipments on a flexible basis, providing an option to purchase supplies as needed without financial commitments for unused cargo.
Defense and Economic Cooperation
The two leaders also discussed defense collaboration. According to Sharif’s office, Aliyev expressed satisfaction with the quality of defense equipment acquired from Pakistan and stated that Azerbaijan intends to continue procurement. In September 2024, Pakistan’s military signed an agreement to sell JF-17 Thunder Block III fighter jets to Azerbaijan. The jets are jointly produced by Pakistan and China.
Sharif’s visit is part of Pakistan’s broader efforts to attract foreign investment as the country prepares for a review of its three-year bailout program with the International Monetary Fund (IMF) in March. Pakistan secured a $7 billion loan from the IMF in September 2024 to stabilize its economy.
Following his visit to Azerbaijan, Sharif is scheduled to travel to Uzbekistan on Tuesday to strengthen Pakistan’s engagement with Central Asian nations.
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