Azerbaijan allocated over $2.8 billion for Karabakh reconstruction in 2024 Finance Ministry says

Azerbaijan has allocated over 4.8 billion manats (over $2.8 billion) from its state budget for the restoration and reconstruction of territories liberated from occupation in 2024.

This marks a 13.6 per cent decrease compared to the previous year, 2023, according to the Ministry of Finance, Caliber.Az reports per local media.

The data reveals that contracting organizations have utilized 4.82 billion manats out of the 4.85 billion manats allocated for the implementation of various reconstruction projects, accounting for 99.4 per cent of the total funds earmarked for this purpose.

Additionally, 2.77 billion manats ($1,6 billion) or 98.5 per cent of the state funds designated for capital investments, were used effectively during the year.

Azerbaijan announced plans to allocate AZN 4 billion (over $2 billion), representing 10.1 per cent of its state budget expenditure, to the reconstruction of liberated territories in 2025, according to the Ministry of Finance. This budget marks a 17.6 per cent decrease from 2024 forecasted funds.

The allocation will focus on rebuilding efforts in the Karabakh and East Zangazur regions, underscoring Azerbaijan's commitment to restoring these areas. Reconstruction activities have been ongoing since the end of the 2020 conflict with Armenia, which concluded with Azerbaijan reclaiming approximately 20 per cent of its territory.

Following the ceasefire agreement, Azerbaijan initiated an extensive restoration plan, establishing a Coordination Headquarters and 17 specialised working groups to oversee various development projects in the region.

The rebuilding efforts continue despite the considerable challenges posed by the widespread destruction.

By Vafa Guliyeva