Azerbaijan allocates over $477 million for reconstruction of liberated lands in Q1 2025

The Azerbaijani Finance Ministry has announced that 812.3 million manats ($477.8 million) were allocated in the first quarter of 2025 for the restoration and reconstruction of territories liberated from occupation.

This figure represents a 33.5 per cent decline compared to the same period in 2024, reflecting a gradual adjustment in expenditure as major infrastructure projects near completion, Caliber.Az reports per local media.

Between 2021 and 2024, Azerbaijan dedicated a total of 17.6 billion manats ($10.3 billion) from the state budget to the rebuilding of these regions, including 5.35 billion manats ($3.1 billion) in 2024. Looking ahead, the government has allocated 4 billion manats ($2.3 billion) for continued reconstruction efforts throughout 2025, reaffirming its long-term commitment to revitalising the liberated territories and restoring normal life for returning residents.

Moreover, Azerbaijan’s government is set to allocate 20 billion manats (approximately $11.8 billion) over the next five years for the restoration and reconstruction of territories liberated in the Karabakh region.

This substantial allocation will comprise roughly 30 per cent of the capital expenditures in the state budget during this period, underscoring the government's commitment to revitalising areas affected by decades of occupation.

The planned expenditure represents a continuation of large-scale reconstruction efforts initiated in the aftermath of Azerbaijan’s restoration of control over its territories. From 2021 to 2024, the state budget allocated 17.6 billion manats ($10.3 billion) for rebuilding infrastructure and services in the liberated areas, with 5.35 billion manats ($3.1 billion) directed toward these efforts in 2024.

Looking ahead, 4 billion manats ($2.3 billion) has already been earmarked for 2025, reinforcing Azerbaijan’s focus on rebuilding war-affected regions and facilitating the safe return of displaced people. These funds are expected to support the construction of new housing, transport and energy infrastructure, public services, and demining operations across the region.

By Naila Huseynova