Azerbaijan to invest over $2 billion in Karabakh, East Zangazur reconstruction in 2025

Azerbaijan plans to allocate AZN 4 billion (over $2 billion)—equivalent to 10.1 per cent of the country’s state budget expenditures—for the reconstruction and restoration of territories liberated from occupation in 2025.

This allocation marks a 17.6 per cent decrease from the forecasted budget for 2024, Caliber.Az reports citing the Ministry of Finance.

The funds are earmarked to support the rebuilding efforts in Karabakh and East Zangazur, reflecting the government's ongoing commitment to the recovery and development of these areas.

The restoration work in Karabakh entered the active phase in 2021 as several projects had been completed and the foundations for new ones were laid down. The restoration process in Karabakh started right after the November 10 statement that ended the 44-day war between Armenia and Azerbaijan.

After the war, Azerbaijan liberated its territories that constituted about 20 per cent of the total territory of Azerbaijan and were occupied by Armenian forces in the early 90s.

Despite the fact that the total destruction in Karabakh makes the restoration process complex and time-consuming, Azerbaijan immediately started the restoration process. In this regard, the plan for socio-economic development of the liberated territories was prepared, and for the implementation of this plan, Coordination Headquarters and 17 working groups on different areas were established.