Azerbaijan to dedicate 30% of capital budget for Karabakh reconstruction by 2029

Azerbaijan’s government is set to allocate AZN 20 billion (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, Caliber.Az reports via local media.

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 AZN 5.35 billion manats ($3,1 billion) directed toward these efforts in 2024 alone.

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 populations. These funds are expected to support the construction of new housing, transport and energy infrastructure, public services, and demining operations across the region.

By Vafa Guliyeva