Pakistan PM, Azerbaijan president agree to boost cooperation in defense, energy and trade

Pakistan's Army Chief Field Marshal Asim Munir (left), Prime Minister Shehbaz Sharif and Azerbaijan President Ilham Aliyev pose for a picture in Baku on November 7, 2025. (PID)
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Updated 07 November 2025
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Pakistan PM, Azerbaijan president agree to boost cooperation in defense, energy and trade

  • PM Shehbaz Sharif was accompanied by Field Marshal Asim Munir during his meeting with Aliyev
  • Pakistan and Azerbaijan have been expanding cooperation through high-level visits and agreements

ISLAMABAD: Prime Minister Shehbaz Sharif and Azerbaijan President Ilham Aliyev on Friday agreed to further strengthen cooperation in defense, energy, trade and politics, said an official statement released in Islamabad.

The development took place during a meeting between the two leaders in Baku, which was also attended by Pakistan Army Chief Field Marshal Asim Munir.

Sharif and Munir are currently visiting the Central Asian state to attend the 50th Victory Day celebrations marking the end of Azerbaijan’s 44-day war with Armenia over Karabakh.

Pakistan and Azerbaijan have expanded cooperation this year through high-level visits and multiple agreements while reaffirming mutual support on regional and international issues.

“Both leaders reviewed bilateral relations and agreed to further strengthen their multifaceted cooperation in the areas of politics, trade and investment, energy, connectivity and defense,” the PM Office said in a statement.

During the meeting, Sharif thanked Aliyev for the invitation to the celebrations and congratulated the government and people of Azerbaijan.

He said Azerbaijan’s victory served as a “beacon of hope” for the people of Kashmir and Palestine.

Aliyev accepted Sharif’s invitation to visit Islamabad again and thanked Pakistan for its support in Azerbaijan’s struggle in the Karabakh region. He also praised Pakistan’s role in promoting regional stability in South Asia.

This marks Sharif’s fourth visit to Azerbaijan this year. 

In July, he met President Aliyev in Khankendi on the sidelines of the 17th ECO Summit, while in May he traveled to Baku as part of a broader economic diplomacy drive with Central Asian republics, offering them access to Pakistan’s southern ports in Karachi and Gwadar.

In addition to their long-standing fraternal ties, Pakistan and Azerbaijan maintain close cooperation in regional and international forums including the Organization of Islamic Cooperation, the Economic Cooperation Organization and the United Nations.

In July 2024, Azerbaijan announced a $2 billion investment in Pakistan during President Aliyev’s visit to Islamabad.

Earlier, in September 2023, Pakistan signed a contract to supply JF-17 Block III fighter jets to Azerbaijan, marking a significant step in strengthening defense cooperation.


Pakistan drops 8,000 MW power procurement, claims $17 billion savings amid IMF-driven reforms

Updated 18 January 2026
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Pakistan drops 8,000 MW power procurement, claims $17 billion savings amid IMF-driven reforms

  • Government says decision taken “on merit” as it seeks to cut losses, circular debt, ease consumer pressure 
  • Power minister says losses fell from $2.1 billion to $1.4 billion, circular debt dropped by $2.8 billion

ISLAMABAD: Pakistan has abandoned plans to procure around 8,000 megawatts of expensive electricity, the power minister said on Sunday, adding that the decision was taken “purely on merit” and would save about $17 billion.

The power sector has long been a major source of Pakistan’s fiscal stress, driven by surplus generation capacity, costly contracts and mounting circular debt. Reforming electricity pricing, reducing losses and limiting new liabilities are central conditions under an ongoing $7 billion IMF program approved in 2024.

Pakistan has historically contracted more power generation than it consumes, forcing the government to make large capacity payments even for unused electricity. These obligations have contributed to rising tariffs, budgetary pressure and repeated IMF bailouts over the past two decades.

“The government has abandoned the procurement of around 8000 megawatts of expensive electricity purely on merit, which will likely to save 17 billion dollars,” Power Minister Sardar Awais Ahmed Khan Leghari said while addressing a news conference in Islamabad, according to state broadcaster Radio Pakistan.

He said the federal government was also absorbing losses incurred by power distribution companies rather than passing them on to consumers.

The minister said the government’s reform drive was already showing results, with losses reduced from Rs586 billion ($2.1 billion) to Rs393 billion ($1.4 billion), while circular debt declined by Rs780 billion ($2.8 billion) last year. Recoveries, he added, had improved by Rs183 billion ($660 million).

Leghari said electricity tariffs had been reduced by 20 percent at the national level over the past two years and expressed confidence that prices would be aligned with international levels within the next 18 months.

Power sector reform has been one of the most politically sensitive elements of Pakistan’s IMF-backed adjustment program, with higher tariffs and tighter enforcement weighing on households and industry. The government says cutting losses, improving recoveries and avoiding costly new capacity are essential to stabilizing public finances and restoring investor confidence.