ISLAMABAD: Prime Minister Shehbaz Sharif said on Friday Pakistan was close to finalizing a $2 billion investment agreement with Azerbaijan, as he met a senior representative of President Ilham Aliyev amid Islamabad’s push to attract foreign capital into key sectors.

Sharif made the remarks during a meeting with Khalaf Khalafov, Azerbaijan’s presidential representative on special assignments, at the Prime Minister’s Office, according to an official statement.

The talks come as Pakistan seeks large-scale foreign investment to shore up its economy and strengthen energy security, with Azerbaijan emerging as a key partner.

“Welcoming the Azerbaijani dignitary, the Prime Minister recalled the warm fraternal bonds between Pakistan and Azerbaijan and reaffirmed Pakistan’s resolve to further strengthen bilateral relations with Azerbaijan, in all areas of mutual interest,” the statement said.

“While noting that both sides were close to finalizing the agreement for USD 2 billion investment by Azerbaijan in Pakistan, the Prime Minister reiterated his invitation to President Aliyev to undertake an official visit to Pakistan at his earliest convenience,” it added.

Earlier this month, Pakistan’s finance ministry said that Azerbaijan’s state energy company SOCAR was set to finalize an investment in the country’s oil and gas sector following high-level engagements at the World Economic Forum in Davos, as Islamabad works to stabilize energy supply, reduce costs and improve contractual transparency.

SOCAR already operates in Pakistan through SOCAR Trading, which supplies up to one LNG cargo per month without take-or-pay obligations, giving Pakistan greater flexibility in managing demand and pricing.

Regional issues were also discussed during Friday’s meeting.

Khalafov thanked Pakistan for its diplomatic support during the 2020 Nagorno-Karabakh conflict — a brief but intense war between Azerbaijan and Armenia that ended with Baku regaining control of large parts of the disputed territory — and reaffirmed Azerbaijan’s longstanding support for Pakistan’s position on Kashmir, the statement said.

Pakistan and Azerbaijan have expanded economic and strategic ties in recent years, including defense and security cooperation.