ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Saturday welcomed a peace agreement between Azerbaijan and Armenia, hoping that it would open new avenues for trade and regional connectivity.
US President Donald Trump announced that Armenia and Azerbaijan had committed to a lasting peace after decades of conflict as he hosted the leaders of the South Caucasus rivals at a White House signing event.
The development comes as Pakistan, slowly recovering from a macroeconomic crisis under a $7 billion International Monetary Fund (IMF) loan, looks to capitalize on its geostrategic location to boost transit trade and foreign investment for a sustainable recovery.
“We congratulate President Ilham Aliyev and the people of Azerbaijan on this historic agreement, that reflects wisdom, foresight and sagacity in charting a course for a peaceful future for their region,” Sharif said on X.
“We also appreciate the facilitation role of the United States, under President Donald Trump, in bringing the two sides together and securing an agreement that opens new avenues for trade, connectivity, and regional integration.”
Christian-majority Armenia and Muslim-majority Azerbaijan have feuded for decades over their border and the status of ethnic enclaves within each other’s territories.
The nations went to war twice over the disputed Karabakh region, which Azerbaijan recaptured from Armenian forces in a lightning 2023 offensive, sparking the exodus of more than 100,000 ethnic Armenians.
The two former Soviet republics “are committing to stop all fighting forever, open up commerce, travel and diplomatic relations and respect each other’s sovereignty and territorial integrity,” Trump said at the event.
Sharif said Pakistan stood by the brotherly nation of Azerbaijan at this proud moment of their history.
“This landmark development marks the dawn of a new era of peace, stability, and cooperation in the South Caucasus, a region that has endured decades of conflict and human suffering,” he said.
“It is our hope that this spirit of dialogue will serve as an example for other regions facing protracted conflicts.”
Pakistan and Azerbaijan maintain close ties. In July, Sharif met with Azerbaijan President Ilham Aliyev in Khankendi on the sidelines of the 17th Economic Cooperation Organization (ECO) summit, where the two leaders agreed to boost bilateral trade and investment.
This was Sharif’s third visit to Azerbaijan in 2025. He last traveled to Baku in May as part of a broader push at economic diplomacy with the Central Asian republics, to whom Pakistan has offered access to its southern ports in Karachi and Gwadar.
In July 2024, Azerbaijan announced a $2 billion investment in Pakistan during a visit by President Ilham Aliyev to Islamabad. In September last year, Pakistan signed a contract to supply JF-17 Block III fighter jets to Azerbaijan, marking the deepening of defense cooperation.
