Pakistan seeks Azerbaijani investment to boost economic ties

Pakistan is actively inviting investors from Azerbaijan to explore promising opportunities in various sectors, highlighting a growing economic partnership between the two countries.

Bilal Azhar Kayani, Pakistan’s Minister of Railways and member of the National Assembly, made these remarks during the II International Agrarian Innovation Forum held in Baku, Caliber.Az reports, citing domestic media.

“There is huge potential in Pakistan for international investors, including partners from Azerbaijan. Pakistan is open to cooperation. The country’s economy is moving on a positive trajectory,” Kayani said.

He noted that Pakistan has made significant strides over the past year in stabilising its economy, with notable increases in gold and foreign currency reserves, a substantial reduction in inflation, and lower energy prices. The government has also been working to streamline the federal administrative structure.

“To facilitate investment, we have created a single window system—the Special Investment Facilitation Council (SIFC)—which aims to simplify procedures for investors, companies, and entrepreneurs. Pakistan is open for business,” the minister emphasised.

Kayani further underscored the importance Pakistan places on its relationship with Azerbaijan, calling it “one of the priorities for the people of Pakistan.” He described the two nations as “brotherly countries” with deep-rooted bonds.

Agriculture remains the backbone of Pakistan’s economy, accounting for 23% of GDP and employing 37% of the labour force. Last year, the agricultural sector grew by 6%, with production of key crops such as cotton, wheat, rice, and corn increasing by 17%.

Recently, Pakistan and Azerbaijan have signed multiple agreements and Memoranda of Understanding (MoUs) aimed at enhancing bilateral cooperation in the trade and energy sectors. The visit of Pakistani Prime Minister Shehbaz Sharif to Baku marked a significant milestone, featuring productive discussions with Azerbaijani President Ilham Aliyev. These developments signal the beginning of a strategic partnership between the two countries.

The newly signed agreements represent a shift from traditional diplomatic ties to more substantive economic cooperation. The centrepiece of this collaboration is an agreement to increase bilateral investments to $2 billion through projects that promise mutual benefits. This financial commitment not only reflects Azerbaijan’s confidence in Pakistan’s economic potential but also strengthens Pakistan’s position as an attractive investment destination. 

A key development is the MoU signed between the State Oil Company of Azerbaijan Republic (SOCAR) and Pakistan’s Frontier Works Organisation (FWO) and Pakistan State Oil (PSO). This agreement focuses on collaboration for the Machike Thallian Tarujabba White Oil Pipeline Project—a strategic initiative designed to enhance Pakistan’s energy security and reduce transportation costs. The project is expected to play a vital role in facilitating efficient oil transport and supporting the growth of Pakistan’s industrial and economic sectors.

Beyond energy, the sectors of tourism and education offer long-term benefits. The MoUs in these areas are expected to foster cultural exchange, educational cooperation, and strengthen people-to-people ties between Pakistan and Azerbaijan. Both countries boast rich cultural histories and stunning landscapes, and the agreements will open new avenues for students, professionals, and investors to engage in academic pursuits and tourism, further enriching bilateral relations.

By Tamilla Hasanova