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)
Short Url
Updated 21 November 2025
Follow

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 and Kazakhstan sign 37 MoUs to deepen cooperation, set $1 billion trade target

Updated 6 sec ago
Follow

Pakistan and Kazakhstan sign 37 MoUs to deepen cooperation, set $1 billion trade target

  • Both sides agree to form strategic partnership and discuss enhanced physical connectivity
  • PM Sharif says the two sides should turn these MoUs into implementable agreements

ISLAMABAD: Pakistan and Kazakhstan on Wednesday agreed to establish a strategic partnership, signed 37 memoranda of understanding (MoUs) and set a target of raising bilateral trade to $1 billion within a year, as the two sides agreed to strengthen bilateral cooperation and physical connectivity amid a push for greater regional integration.

The MoUs were signed in the presence of Prime Minister Shehbaz Sharif and President Kassym-Jomart Tokayev, who arrived in Islamabad a day earlier on an official visit.

Landlocked Kazakhstan is seeking access to global maritime trade through Pakistan’s ports on the Arabian Sea, while Islamabad has been positioning itself as a regional transit hub linking Central Asia with South Asia, the Middle East and beyond.

“We had very useful and productive meetings since morning, and just now we have had this signing ceremony of 37 MOUs,” Sharif said while addressing the gathering at the PM House, expressing hope that the understandings would soon be converted into binding agreements and implemented.

The two countries agreed to expand cooperation across transport and logistics, including rail, road and multimodal corridors, with Sharif offering Kazakhstan access to Pakistan’s transit infrastructure and seaports as part of broader efforts to enhance regional connectivity through Central Asia and Afghanistan.

Sharif acknowledged that current bilateral trade levels remained well below potential.

“Unfortunately, our trade volume is just meager $250 million during the last year,” he said. “This does not reflect not only the strength of our friendship, but also the potential of the two countries ... Let us make a commitment that we will take up our trade volume to $1 billion in the next one year.”

Speaking at the ceremony, Tokayev described Pakistan as a key partner for Kazakhstan.

“Pakistan is a reliable and important partner of Kazakhstan in South Asia and beyond,” he said. “Our peoples are united by centuries-old ties rooted in the legacy of the Great Silk Road, as well as by deep cultural and spiritual affinity.”

Beyond connectivity, the MOUs cover cooperation in energy, agriculture, mining and minerals, pharmaceuticals, defense production, digital technologies and artificial intelligence.

The two sides also agreed to promote joint ventures, particularly in food processing, agriculture value chains and industrial production.

Investment cooperation featured prominently, including the launch of a joint investment platform involving Kazakhstan’s sovereign wealth entities and Pakistani partners to identify bankable projects in mining, energy and infrastructure.

The talks also addressed collaboration in education, science and culture, with both sides agreeing to expand academic exchanges, institutional linkages between universities and people-to-people contacts through cultural and sporting initiatives.

This is the first visit of a Kazakhstan president to Pakistan in 23 years.

The two countries are also scheduled to hold the joint business forum in which more than 250 companies from both sides will come together and are expected to sign commercial agreements.