Pakistan, Azerbaijan to hold ‘fast-track’ dialogue on energy collaboration

Pakistan's Prime Minister, Shehbaz Sharif (L) meets the President of Azerbaijan, Ilham Aliyev on the sidelines of the CICA Summit at Astana, Kazakhstan on October 12, 2022. (Pakistan PM office)
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Updated 12 October 2022
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Pakistan, Azerbaijan to hold ‘fast-track’ dialogue on energy collaboration

  • The decision was taken during Pakistani prime minister’s meeting with the Azerbaijan president in Astana
  • Pakistan calls fostering close cooperation between the two countries in the field of energy ‘a high priority area’

ISLAMABAD: Pakistan and Azerbaijan agreed to hold fast-track dialogue on energy collaboration on Wednesday, as Prime Minister Shehbaz Sharif held an elaborate meeting with President Ilham Aliyev in Astana on the sidelines of the Sixth Summit of Conference for Interaction and Confidence Building Measures in Asia (CICA). 

Both leaders discussed the bilateral relations between the two countries while hoping to increase cooperation in the areas of trade, investment, education, information technology, security, agriculture, connectivity and energy. 

“Prime Minister [Sharif] underlined the need for fostering close cooperation between the two countries in the field of energy, which is a high priority area for his government,” said a statement circulated by the PM Office in Islamabad after the meeting. “Both leaders agreed to fast track discussions on energy collaboration between the two countries through robust engagement.” 

Last month, Pakistan’s state minister for petroleum Musadik Masood Malik visited Baku to discuss energy cooperation after the prime minister nominated him as the focal person on the issue. 

Sharif also proposed leadership level consultations between the two sides in Islamabad to enhance regional connectivity while talking to the Azerbaijan president who accepted the suggestion. 

This was the second interaction between the two leaders in the wake of their last meeting on the sidelines of the Shanghai Cooperation Organization (SCO) meeting in September. 

According to the PM Office, both meetings “afforded a productive opportunity for catalyzing multifaceted economic engagement between Pakistan and Azerbaijan.” 

The prime minister also briefed President Aliyev on his government’s efforts to rehabilitate flood-affected people in and restore their livelihoods destroyed by the unprecedented climate-induced catastrophe. 

He also appreciated Azerbaijan’s steadfast position on Kashmir and its valuable role as a member of the Organization of Islamic Cooperation’s Contact Group on Jammu and Kashmir. 


Pakistan says Panda bond launch to diversify funding, avoid overreliance on dollar

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Pakistan says Panda bond launch to diversify funding, avoid overreliance on dollar

  • Pakistan has said it plans to issue its first-ever yuan-denominated Panda bond in January 2026
  • Pakistan minister identifies agriculture, minerals, AI as key areas to attract Chinese investment

ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb said on Tuesday that launching its first-ever Panda bond would allow Islamabad to diversify its external financing sources away from overreliance on the US dollar, the Finance Division said. 

Pakistan has said it aims to launch the Panda bond— a yuan-denominated bond issued in China’s domestic market— by January next year. This highlights Pakistan’s efforts to find alternatives to dollar-denominated borrowing as global financial conditions tighten and Islamabad looks to escape a prolonged macroeconomic crisis. 

Panda bonds are renminbi-denominated instruments sold to Chinese investors by foreign governments or companies, offering issuers access to China’s deep domestic capital markets while reducing exposure to foreign-exchange volatility.

“He said the [Panda bond] issuance would allow Pakistan to tap into the second-largest and second-deepest capital market in the world, helping diversify funding sources away from overreliance on the US dollar by complementing existing access to euro and sukuk markets,” the Finance Division said. 

Aurangzeb was speaking to the state-owned China Global Television Network (CGTN), the Finance Division said. 

The finance minister acknowledged Pakistan had “previously underutilized” the opportunity to take advantage of the Panda bond, expressing optimism about investor interest in the Chinese market.

He said Pakistan remains hopeful of launching the bond ahead of the Chinese New Year, calling it a “landmark development” in the country’s external financing strategy. 

In response to a question about Pakistan’s economic priorities, Aurangzeb identified agriculture, minerals and mining, artificial intelligence and digital economy as key areas where Islamabad could attract Chinese investment. 

“He emphasized that beyond capital flows, this phase of cooperation places strong emphasis on knowledge transfer and technical support,” the Finance Division said.