ISLAMABAD: Pakistan’s finance ministry said on Thursday Azerbaijan’s state energy company SOCAR is set to finalize an investment in Pakistan’s oil and gas sector next month, following high-level engagements on the sidelines of the World Economic Forum in Davos.

The announcement came after a business roundtable chaired by Finance Minister Muhammad Aurangzeb, where SOCAR President Rovshan Najaf told Pakistani officials the company viewed Pakistan as a long-term energy partner, according to a statement from the finance ministry.

Pakistan has been seeking fresh foreign investment into its energy sector as part of broader economic reforms aimed at stabilizing supply, reducing costs and improving contractual transparency. The oil and gas sector, alongside mining and minerals, has been identified by Islamabad as central to energy security and industrial growth.

SOCAR already has a commercial footprint in Pakistan through SOCAR Trading, which supplies liquefied natural gas under a government-to-government framework with Pakistan LNG Limited. Under the arrangement, SOCAR can supply up to one LNG cargo per month without take-or-pay obligations, giving Pakistan greater flexibility in managing demand and pricing. The agreement has been extended into 2025, reflecting continued cooperation.

“SOCAR views Pakistan as a natural long-term energy partner,” Najaf said, according to the finance ministry statement, citing Pakistan’s “market depth, growing energy demand, and ongoing reform momentum in the oil and gas sector.”

He also highlighted SOCAR’s engagement with Pakistan State Oil on petroleum product supply and expressed interest in expanding cooperation across the broader oil and gas value chain as reforms advance.

Welcoming the planned investment, Aurangzeb reiterated the government’s commitment to attracting “strategic and commercially viable investment” in energy, saying reforms were focused on improving pricing transparency, contractual clarity and risk-sharing mechanisms, according to the statement.

SOCAR is a major state-owned energy company operating in more than 20 countries, with a workforce exceeding 66,000 employees and reported revenues of about $50.6 billion in 2024, the ministry said.

Pakistan and Azerbaijan have been deepening economic ties in recent years, with energy cooperation emerging as a key pillar alongside trade and investment discussions. Officials say the expected SOCAR investment would mark a significant step in strengthening bilateral energy links.