Pakistan, Armenia formalize diplomatic ties, eye cooperation in economy and tourism

In this handout photo, released by the Ministry of Foreign Affairs of Armenia, Pakistan Foreign Minister Ishaq Dar (R) shakes hands with his Armenian counterpart, Ararat Mirzoyan, following a signing of a Joint Communiqué, on the sidelines of SCO summit in Tianjin, China on August 31, 2025. (Handout/MFA of Armenia)
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Updated 31 August 2025
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Pakistan, Armenia formalize diplomatic ties, eye cooperation in economy and tourism

  • Pakistan, Armenia did not have diplomatic ties, with Islamabad backing Azerbaijan in its conflict with Armenia over Karabakh
  • Both Armenia and Azerbaijan this month committed to a lasting peace at a White House signing event after decades of conflict

ISLAMABAD: Pakistan and Armenia on Sunday formalized diplomatic relations with an exchange of a joint communique between the two sides in China, the Pakistani foreign office said, with both sides discussing cooperation in economy, tourism and other sectors.

Pakistan and Armenia did not have diplomatic ties mainly due to the rivalry between Azerbaijan and Armenia over the disputed Karabakh region, with Islamabad consistently backing Baku.

This month, Pakistani Foreign Minister Ishaq Dar held a telephonic conversation with his Armenian counterpart Ararat Mirzoyan, during which they agreed to consider establishing Islamabad-Yerevan diplomatic ties.

The phone call followed US President Donald Trump announcement that Armenia and Azerbaijan had committed to lasting peace after decades of conflict as he hosted the leaders of the South Caucasus rivals at a White House signing event.

“The Deputy Prime Minister and Foreign Minister of Islamic Republic of Pakistan, Senator Mohammad Ishaq Dar, today formally exchanged a Joint Communiqué with the Foreign Minister of Armenia, Mr. Ararat Mirzoyan, thereby establishing diplomatic relations between the two countries,” the Pakistani foreign office said on Sunday, following their meeting on the sidelines of a Shanghai Cooperation Organization (SCO) summit in China’s Tianjin.

“Marking a historic step forward, both the leaders affirmed their commitment to the principles and objectives of United Nations Charter and discussed possible avenues of cooperation including economy, education, culture, and tourism.”

The development comes as Pakistan, which is slowly recovering from a macroeconomic crisis under a $7 billion International Monetary Fund (IMF) loan, looks to capitalize on its geostrategic location to boost regional trade and tourism for a sustainable recovery.

The two leaders reaffirmed their desire to work closely with each other at bilateral and multilateral fora, to achieve their shared objectives of peace, progress, and prosperity for the peoples of their two countries, according to the Pakistani foreign office said.

Christian-majority Armenia and Muslim-majority Azerbaijan 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.

Islamabad had welcomed the peace agreement between Azerbaijan and Armenia, hoping that it would open new avenues for trade and regional connectivity.

“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,” Pakistan Prime Minister Shehbaz Sharif said on August 9.

“It is our hope that this spirit of dialogue will serve as an example for other regions facing protracted conflicts.”


Pakistan stocks recover as oil supply fears ease after Islamabad seeks Red Sea route— analyst

Updated 05 March 2026
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Pakistan stocks recover as oil supply fears ease after Islamabad seeks Red Sea route— analyst

  • Pakistan has sought Saudi help to secure oil supplies via Red Sea port after Iran’s closure of Strait if Hormuz
  • Analyst says higher crude oil prices, expectations of IMF releasing next loan tranche also triggered bullish activity

ISLAMABAD: Pakistani stocks marked a sharp recovery when trading closed on Thursday, as institutional activity increased following Islamabad’s move to seek crude oil supplies through the Red Sea port eased oil supply fears, a financial analyst said. 

Pakistani stocks have recorded a sharp decline this week, with the benchmark KSE-100 index recording its largest-ever single-day decline on Monday when it plunged 16,089 points. Escalating conflict in the Middle East triggered panic selling at the Pakistani bourse, forcing a temporary trading halt on Monday. 

The KSE-100 index, however, gained 3.49 percent or 5,433.46 points to close at 161,210.67 when trading ended on Thursday, up from the previous close of 155,777.21 points, according to Pakistan Stock Exchange’s (PSX) data.

Pakistan’s Petroleum Minister Ali Pervaiz Malik met Saudi Ambassador Nawaf bin Said Al-Malki on Wednesday to discuss Iran’s closure of the key Strait of Hormuz, which has threatened Pakistan’s energy supply. Roughly 20 percent of the global oil and gas supply passes through the route. Saudi Arabia indicated it could facilitate shipments through the Red Sea port of Yanbu, offering an alternative route if Gulf shipping lanes remain disrupted, the petroleum ministry said on Wednesday. 

“Stocks staged a sharp recovery at PSX amid institutional activity on easing fuel supply fears after KSA [Kingdom of Saudi Arabia] commits oil supplies through the Red Sea port,” Ahsan Mehanti, chief executive officer at Arif Habib Commodities, told Arab News.

He said higher global crude oil prices and expectations of the International Monetary Fund releasing its next tranche of the $7 billion loan for Pakistan also helped bullish activity at the PSX.

An IMF mission was in Pakistan to hold talks on the third review of a $7 billion Extended Fund Facility multi-year program, and for the second review of the $1.4 billion Resilience and Sustainability Facility this week.

However, the delegation left for Türkiye amid tensions in the Gulf. Pakistani officials have said talks are likely to continue virtually in the coming days. 

Pakistani brokerage Topline Securities said in its daily market review report that strong institutional buying “turned the tide” on Thursday after the market’s recent overreaction to regional issues.

The report added that Hub Power Company (HUBC), Oil & Gas Development Company (OGDC), Fauji Fertilizer Company (FFC), Engro Corporation (ENGROH), and Meezan Bank Limited (MEBL) collectively contributed 2,197 points to the KSE benchmark’s gain.

Topline Securities said 723 million shares were traded on Thursday, with K-Electric Limited (KEL) stealing the spotlight as more than 1.17 billion shares changed hands.

Pakistani investors are closely monitoring developments in the Gulf, particularly around energy routes and further retaliatory actions, as the conflict’s trajectory remains uncertain.