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Politics

Azerbaijan Pledges $2 Billion Investment in Pakistan as Strategic Ties Deepen

Last updated: July 9, 2025 7:18 pm
Hannan Kaimkhani
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Deputy PM Ishaq Dar and Azerbaijani Economy Minister Mikayil Jabbarov formally signed the agreement in Shusha, Azerbaijan, on Friday. — APP
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In a landmark development poised to transform regional economic dynamics, Azerbaijan has pledged a monumental $2 billion investment in Pakistan’s economic sector. The agreement, inked in the historic city of Shusha, was signed by Pakistan’s Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar and Azerbaijani Economy Minister Mikayil Jabbarov.

The signing ceremony took place in the presence of Prime Minister Muhammad Shehbaz Sharif, following his high-level meeting with Azerbaijani President Ilham Aliyev in Khankandi. The final and detailed accord is expected to be formally signed during President Aliyev’s upcoming visit to Islamabad.

Strengthening Brotherhood Through Economics

The $2 billion commitment marks a new chapter in the brotherly relations between Pakistan and Azerbaijan, significantly elevating bilateral trade and investment partnerships. Officials from both nations hailed the agreement as a milestone that reflects growing mutual confidence and shared economic aspirations.

“This is not just a financial transaction—it is a symbol of trust, friendship, and long-term collaboration,” Prime Minister Shehbaz Sharif stated while addressing media in Shusha. “Pakistan deeply values Azerbaijan’s support, and I am confident that this cooperation will multiply in the near future.”

A Fruitful Diplomatic Path

The breakthrough was made possible after months of behind-the-scenes negotiations led by Deputy Prime Minister Ishaq Dar and Pakistan’s diplomatic teams. Their sustained efforts, coupled with strategic consultations across various sectors, laid the groundwork for the landmark deal.

The agreement is expected to trigger a new wave of investments in Pakistan, particularly in energy, infrastructure, and technology sectors. It will also open avenues for joint ventures, knowledge exchange, and greater connectivity under the broader vision of regional integration.

Shared Vision on Regional Cooperation

The announcement comes on the sidelines of the Economic Cooperation Organization (ECO) summit, where leaders from member states expressed a collective commitment to enhancing regional cooperation. Prime Minister Shehbaz emphasized that the summit led to consensus on key issues including trade, investment, water resource management, and climate change mitigation—particularly glacier melting.

A Gateway to Strategic Growth

President Ilham Aliyev’s expected visit to Pakistan is likely to further solidify this economic partnership, with both nations eyeing long-term collaboration across defense, renewable energy, agriculture, and digital innovation.

“This $2 billion is just the beginning,” Prime Minister Shehbaz noted confidently. “With Azerbaijan’s confidence in Pakistan’s potential, we expect investments to grow exponentially in the years ahead.”

As Islamabad and Baku chart a new path of economic diplomacy, this agreement not only reinforces political ties but also promises to reshape regional economics in South and Central Asia.

Follow us for more updates on regional diplomacy, economic cooperation, and investment breakthroughs.

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