Azerbaijan eyes major expansion in trade, investment ties with Pakistan

In this file photo, taken on November 7, 2025, Pakistan Prime Minister Shehbaz Sharif meets President of Azerbaijan Illham Aliyev in Baku. (Handout/PMO/File)
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Updated 21 November 2025
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Azerbaijan eyes major expansion in trade, investment ties with Pakistan

  • Azerbaijan removes customs duty on Pakistani rice as both nations push to grow trade far beyond current volume
  • Senior aide to President Aliyev says policy, defense, energy cooperation rising but private sector must play larger role

BAKU: Azerbaijan said on Friday it is preparing for a significant expansion of economic, defense and investment cooperation with Pakistan, with a senior aide to President Ilham Aliyev telling Arab News bilateral political ties were already at a “strategic level” even as trade remains well below potential.

The remarks come as both governments intensify engagement after a series of high-level visits, including Prime Minister Shehbaz Sharif’s participation in Baku’s Victory Day parade this month and President Aliyev’s state visit to Pakistan last year.

Despite consistently close political alignment — Islamabad was among the first to recognize Azerbaijan’s independence in 1991 — the economic relationship has historically lagged behind.

“We already see the steady growth in the economic and trade relations between the two countries but it’s not satisfactory,” Hikmet Hajjiyev, Head of the Foreign Policy Department at the Azerbaijani Presidential Administration, told Arab News on the sidelines of the D-8 media summit.

“It’s not commensurate to the level of the political relation between the two countries, and therefore we think that both governments and private sector and business communities should do even more to increase our trade relationship.”

A key recent step, Hajjiyev revealed, was Azerbaijan’s removal of customs duties on Pakistani rice, which he said had already lowered market prices and opened space for larger import volumes.

Defense cooperation is also intensifying, Hajjiyev said as he pointed to the participation of Pakistan’s JF-17 Thunder fighter jet in Azerbaijan’s most recent Victory Day military parade, calling it “another strong indicator” of the countries’ growing strategic cooperation in the defense industry.

Investment ties are widening as well, with Azerbaijani institutions exploring opportunities in Pakistan.

“Azerbaijan is a potential investment country,” Hajjiyev said. “Our institutions are actively working with Pakistani counterparts to explore investment options.”

On the scale of future investments, he said it was “premature to discuss figures” as both government entities and the private sector continue assessing proposals:

“But investment always goes to friendly countries, and Pakistan is one of them.”

Energy is another emerging area of bilateral collaboration, with both sides examining ways to strengthen cooperation across the sector. People-to-people links have expanded in parallel, driven by a sharp increase in direct flights between major cities, the presidential aide said.

“This has strengthened humanitarian interaction and boosted tourism,” Hajjiyev said. “Daily flights have enhanced connectivity and made travel easier.”

From political dialogue and defense to trade, tourism and investments, Hajjiyev said both countries were committed to deepening what he described as a long-standing strategic partnership.

“Both countries have supported each other since Azerbaijan’s independence, and this cooperation will continue to grow,” he said.


Pakistan PM invites UAE investment across tech and resource sectors at National Day event

Updated 08 December 2025
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Pakistan PM invites UAE investment across tech and resource sectors at National Day event

  • Shehbaz Sharif says the UAE remains a key economic partner and continues to lend ‘critical support’ to Pakistan
  • UAE envoy says both nations have potential for cooperation in renewable energy, AI and economic diversification

ISLAMABAD: Pakistan is ready to welcome investment from the United Arab Emirates across emerging technologies and resource sectors, Prime Minister Shehbaz Sharif said on Monday, as both countries marked the 54th National Day of the Gulf country in Islamabad.

Speaking at the ceremony attended by senior ministers, diplomats and business leaders, Sharif said the UAE remained a key economic partner for Pakistan and continued to lend “critical support” to the country’s stabilizing economy.

“Pakistan takes great pride in its strategic partnership with the UAE, which continues to deepen across every domain of life,” he said. “With Pakistan’s economy stabilizing, we stand ready to welcome Emirati investment in renewable energy, AI, fintech, agriculture and minerals.”

Sharif praised the UAE’s leadership and recalled his earliest memories of the Gulf nation as “a land that believed in possibilities long before they became realities,” saying the country’s progress under President Sheikh Mohamed bin Zayed Al Nahyan commanded “profound admiration.”

UAE Ambassador Salem Al Bawab Al Zaabi said the Emirates was committed to strengthening ties with Pakistan in areas including the economy, energy and artificial intelligence.

He said the two countries shared a “deep-rooted friendship built on mutual respect, shared values and a common vision for regional peace and development.”

“We see tremendous potential for collaboration in renewable energy, artificial intelligence, sustainability and economic diversification,” the ambassador said, adding that the UAE aimed to broaden the scope of its economic relations with Pakistan.

The UAE hosts around 1.8 million Pakistani expatriates, one of the country’s largest overseas communities, who Sharif said contributed “tirelessly” to the Gulf state’s development.

Sharif and Deputy Prime Minister Ishaq Dar also joined the UAE ambassador in a cake-cutting ceremony to mark the occasion.