The recent visit of Azerbaijan’s President Ilham Aliyev to Pakistan underscores the deepening ties between the two countries. During his two-day visit to Islamabad on July 11-12, President Aliyev met with Pakistani President Asif Ali Zardari and Prime Minister Muhammad Shehbaz Sharif . These high-level discussions focused on enhancing bilateral cooperation in various domains, including trade, energy, infrastructure, and defense. This visit marks a continuation of a series of reciprocal high-level visits that have historically strengthened the relationship between Azerbaijan and Pakistan. President Aliyev’s previous visit in 2017 and numerous visits by Pakistani leaders to Baku have set a precedent for these exchanges, cementing a tradition of mutual respect and strategic dialogue.
In recent years, Azerbaijan and Pakistan have forged a robust partnership marked by significant strides in economic cooperation and strategic alignment. This evolving relationship, rooted in historical ties and mutual geopolitical interests, has seen remarkable progress across various sectors. The two countries’ mutual support to each other in critical areas, primarily Pakistan’s support to Azerbaijan during the occupation of the Karabakh region by Armenia, have further bolstered the bilateral relations and provided a solid basis for deeper cooperation.
Trade between Azerbaijan and Pakistan has seen a significant growth, reflecting a deepening economic engagement. From modest figures in 2020, bilateral trade has surged, surpassing $100 million by 2023. This growth is underpinned by strategic agreements, particularly in energy, where Azerbaijan's supply of liquefied natural gas (LNG) to Pakistan has been pivotal in alleviating the latter's energy shortages. The energy agreements, which provide LNG at preferential prices, have been instrumental in addressing Pakistan's chronic energy deficit and stabilizing its economy amidst fluctuating global oil prices.
“We have discussed an initial figure of $2 billion dollars in investments in areas of mutually beneficial projects,” Prime Minister Sharif stated in his press remarks, expressing expectations for significant potential to increase these investments to billions of dollars in the coming years. President Aliyev, in turn, noted that several projects have already been reviewed in areas such as energy, infrastructure, connectivity, and defense industry, where successful cooperation is currently underway. “So, we will build a strong partnership not only on a political level, which we already have, but also on an economic level – trade, investments,” he said.
Beyond energy, the economic synergy extends to agriculture, pharmaceuticals, and manufacturing. Pakistan, with its sizable consumer market and vibrant pharmaceutical industry, presents lucrative opportunities for bilateral cooperation with Azerbaijan. Azerbaijan looks to Pakistan for textiles, agricultural products, and pharmaceuticals, aiming to diversify its import base. The establishment of joint ventures in light industries, such as garment and textile manufacturing, further underscores the collaborative spirit driving these bilateral ties.
The strategic partnership also extends to infrastructure development and connectivity initiatives. Both countries are actively exploring transit trade agreements that could enhance regional connectivity, leveraging Pakistan's strategic location as a gateway to Central Asia and beyond. Initiatives like the North-South Transport Corridor and the Middle Corridor are pivotal in this regard, promising enhanced trade routes and logistical efficiencies. The integration of Pakistan’s freight forwarders and carriers into these corridors exemplifies the tangible progress being made in logistical cooperation.
Cultural exchanges and tourism have also flourished, with simplified visa procedures and increased flights fostering greater people-to-people connections. Azerbaijan has become an increasingly popular destination for Pakistani tourists, with 55,000 visitors in 2023 alone, further strengthening bilateral ties beyond commerce. This cultural affinity is bolstered by shared historical and religious bonds, creating a solid foundation for enduring friendship.
An exciting new dimension to Azerbaijan-Pakistan relations is Azerbaijan's hosting of COP29 . This significant event highlights Azerbaijan's growing role in global environmental diplomacy and offers a unique platform for enhancing bilateral cooperation on environmental issues. Pakistan, facing severe environmental challenges such as air pollution, water scarcity, and the impacts of climate change, stands to benefit from collaborative efforts in sustainable development. Azerbaijan's initiatives at COP29 could pave the way for joint projects in renewable energy, water management, and climate resilience, aligning with Pakistan’s environmental priorities and contributing to global sustainability goals.
Looking ahead, the trajectory of Azerbaijan-Pakistan relations appears promising. Both countries are committed to deepening their economic ties through joint ventures and investment collaborations, particularly in sectors like textiles and pharmaceuticals. The recent high-level meetings and agreements underscore a shared commitment to mutual prosperity and regional stability.
In conclusion, Azerbaijan and Pakistan are poised to embark on a new phase of partnership, marked by mutual respect, shared economic interests, and strategic collaboration. As they navigate global challenges and seize opportunities, this burgeoning alliance holds immense potential for both nations and the broader region they represent. The synergy of economic growth, cultural exchange, and environmental cooperation underscores a future where Azerbaijan and Pakistan can achieve shared prosperity and sustainable development.
