Azerbaijan and Pakistan aim to invest $2 billion and collaborate economically.

According to Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, Pakistan and Azerbaijan are attempting to turn their close ties into real trade and investment results. Azerbaijan has expressed a desire to spend over $2 billion in Pakistan.

The minister claimed that since the present administration took office, bilateral ties, especially with Azerbaijan, have improved. He cited regular high-level interactions, including as Prime Minister Muhammad Shehbaz Sharif’s trips and Pakistan’s participation in the COP29 period in Baku.

Energy, oil and gas, minerals, and mining have become important industries for possible cooperative ventures, he said, adding that the emphasis was now on improving trade and investment flows.

“As we proceed, these are clear areas of focus,” he said.

Senator Aurangzeb gave specifics on the proposed investment package, stating that talks were in progress with SOCAR, the state oil company of Azerbaijan, which was investigating the potential to participate in an oil pipeline project in Pakistan.

Although he described the discussions as being in their early stages, he expressed hope that it might be one of the first projects to come to fruition.

Regarding Azerbaijan’s willingness to lend Pakistan an additional $1 billion, the finance minister stated that the funding may come from a variety of sources, such as deposits with the State Bank of Pakistan or assistance for Azerbaijani investors doing business in Pakistan.

He underlined that Pakistan was looking for sustainable funding connected to trade and investment activity rather than handouts.

Regarding collaboration in the digital economy, the minister stated that Pakistan was eager to absorb Azerbaijan’s advancements in cyber security, fintech, artificial intelligence, and technology-led service centers. He continued by saying that Pakistan’s efforts to become a “Digital Pakistan” presented opportunities for cooperation in Web 3.0, AI, digital infrastructure, and financial systems.

Senator Aurangzeb emphasized the significance of South-South cooperation in view of the strain on the international trade regime, pointing out that over the next five years, new trade corridors connecting Pakistan with Central Asian nations, especially Azerbaijan, may become strategically significant.