ISLAMABAD: Pakistani and Azeri bourses on Tuesday signed a memorandum of understanding (MoU) to exchange expertise in market operations, product development and regulatory best practices, the Pakistan Stock Exchange (PSX) said.
The development takes place a day after Prime Minister Shehbaz Sharif held bilateral and delegation-level talks with Azerbaijan President Ilham Aliyev during his two-day visit to the Central Asian country. Sharif’s visit was part of Pakistan’s broader push for economic policy as it eyes enhanced trade and investment with landlocked Central Asia.
The MOU was signed by PSX Managing Director and CEO Farrukh H. Sabzwari and Ruslan A. Khalilov, chairman of the Baku Stock Exchange’s management board, in a virtual ceremony.
“Under the partnership, PSX and BSE will exchange expertise in market operations, product development, and regulatory best practices,” the PSX said.
The statement said that the MoU aims to establish “robust communication channels” and strengthen the relationship between both countries’ capital markets. This in turn would foster mutual growth and development in their financial services sectors.
The Pakistani bourse said the collaboration will explore cross-border investments and initiatives to enhance market efficiency and liquidity.
“Key areas of cooperation include facilitating dual listings and investment fund trading, jointly developing products, sharing insights on market operations and regulations, supporting staff secondments, and engaging in capacity-building initiatives for mutual benefit,” the statement said.
Sabzwari described the development as an “important milestone” to strengthen cooperation between the capital markets of both countries.
“We believe that by sharing knowledge and expertise, both exchanges can create more dynamic & competitive capital markets, ultimately benefiting investors and businesses in both countries,” he said.
Khalilov said the BSE is “delighted” to partner with the PSX to advance capital markets in the region.
“This MoU opens doors to innovative opportunities, cross-border investments, and knowledge exchange, paving the way for a stronger financial future for both Azerbaijan and Pakistan,” he was quoted as saying by the PSX.
Pakistan has aggressively eyed business deals with Azerbaijan in recent months. The two countries signed several agreements to enhance cooperation in the trade, energy, tourism and education sectors on Monday during Sharif’s Baku visit.
In July 2024, the top leaders of the two nations discussed investment and trade projects worth $2 billion during Aliyev’s state visit to Pakistan. In September 2024, Pakistan signed a contract to supply JF-17 Block III fighter jets to Azerbaijan, highlighting deepening defense cooperation.
