The relationship between Azerbaijan and Pakistan is marked by a strong foundation of political, economic, and cultural ties. Rooted in shared values and mutual respect, the two nations continue to build upon their friendship with high-level visits and agreements that foster cooperation across various domains.
As both countries look to strengthen their strategic partnership, the upcoming visit of Pakistani Prime Minister Shehbaz Sharif to Azerbaijan holds significant importance.
Ambassador of Pakistan to Azerbaijan Qasim Mohiuddin recently highlighted the anticipation surrounding the visit, noting that major announcements are expected to follow.
"Azerbaijan is the most important country in the region, whether in trade, defense, or other areas. Both countries have a bright future ahead together," Mohiuddin said in an interview with Trend prior to the visit.
Azerbaijan and Pakistan are committed to boosting bilateral trade and economic exchanges. In July 2024, during Azerbaijani President Ilham Aliyev's visit to Pakistan, the two countries signed 15 memoranda of understanding (MoUs) covering areas such as trade, tourism, defense, and cultural exchange. These agreements laid the groundwork for strengthening trade ties, with a particular focus on mutually beneficial projects, including initiatives in science and technology, mines, and minerals.
The bilateral trade between the two countries has already shown positive growth. In 2024, the volume of trade between Azerbaijan and Pakistan increased by 22.5%, reaching $22 million, up by $4.9 million from the previous year. Azerbaijan’s imports from Pakistan grew by 8.6%, totaling $21.8 million. Additionally, both nations are discussing an ambitious goal of $2 billion in investments, aimed at deepening economic collaboration across various sectors.
Moreover, there are already over 3,600 Pakistani companies registered in Azerbaijan, operating across key sectors such as industry, agriculture, construction, trade, transport, and services. These companies are also vying for opportunities in the reconstruction and rehabilitation efforts in Azerbaijan’s newly liberated territories. Azerbaijan views expanding its economic and trade relations with Pakistan as a priority, as evidenced by President Ilham Aliyev’s decision to reduce the import duty on rice products from Pakistan from 15% to 0% until 2027. This unilateral concession is designed to encourage further trade between the two nations.
Azerbaijan and Pakistan are also working to enhance their energy cooperation. In December 2024, Pakistan State Oil (PSO) signed a Sale and Purchase Agreement (SPA) with the State Oil Company of Azerbaijan Republic (SOCAR) to secure a consistent supply of petroleum products. This agreement aims to diversify Pakistan's energy sources and establish a more reliable energy supply chain.
Moreover, the countries are advancing cooperation in the liquefied natural gas (LNG) sector. In July 2024, Pakistan LNG Limited (PLL) and SOCAR signed a framework agreement for the import of LNG, securing a dependable monthly supply contingent on demand and commercial feasibility. This collaboration plays a pivotal role in addressing Pakistan’s growing energy needs.
In February 2025, SOCAR President Rovshan Najaf met with Pakistan’s Minister for Privatization Aleem Khan to discuss expanding their energy partnerships. The meeting explored new opportunities for collaboration, emphasizing the strategic significance of energy cooperation in the broader context of bilateral relations.
Beyond trade and energy, transport cooperation has become a key priority in strengthening ties between Azerbaijan and Pakistan. Both countries have focused on developing infrastructure projects that enhance connectivity, particularly in the transportation sector.
In January 2025, Azerbaijani Minister of Digital Development and Transportation, Rashad Nabiyev, held discussions with Pakistan's Federal Minister for Privatization, Abdul Aleem Khan. The talks centered around potential collaborations in infrastructure, including Azerbaijan’s investment in Pakistan’s major motorway projects, such as the M6 and M9. These projects are expected to improve trade connectivity between Pakistan, Azerbaijan, and Central Asia.
Pakistan has also introduced draft regulations to facilitate transit trade with Azerbaijan. These regulations will allow vehicles registered in Azerbaijan to transport goods to and from Pakistan without the need for financial guarantees, streamlining trade operations and boosting regional commerce. This is seen as a vital step toward enhancing the efficiency of trade and transportation across the region.
The growing cooperation between Azerbaijan and Pakistan is set to continue fostering mutual growth and regional integration. With the recent agreements and high-level discussions in energy, trade, and transportation, both nations are well-positioned to deepen their bilateral relations. The upcoming visit of Prime Minister Shehbaz Sharif to Azerbaijan will undoubtedly play a pivotal role in accelerating these efforts and bringing new opportunities for collaboration.
As the two countries advance in strengthening their ties, the future of their partnership looks promising, with ample opportunities for greater cooperation in key sectors. Whether it is through energy diversification, trade facilitation, or infrastructure development, Azerbaijan and Pakistan are committed to charting a path toward shared prosperity and regional connectivity.
