Islamabad (TDI): Pakistan and Azerbaijan are working to turn their close diplomatic ties into concrete trade and investment results, with Azerbaijan showing interest in investing nearly $2 billion in Pakistan, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb said on Tuesday.
Speaking in an interview, the finance minister noted that bilateral relations, particularly with Azerbaijan, have strengthened significantly since the current government took office. He pointed to frequent high-level engagements, including visits by Prime Minister Muhammad Shehbaz Sharif and Pakistan’s active participation during the COP29 events in Baku, as evidence of growing momentum.
Aurangzeb said the focus has now shifted toward expanding trade and investment, identifying energy, oil and gas, minerals, and mining as priority sectors for joint ventures. “These are clear areas of focus as we move forward,” he said.
Sharing details of the proposed investment package, the minister revealed that talks are underway with Azerbaijan’s state oil company, SOCAR, which is considering an investment in an oil pipeline project in Pakistan. While discussions are still at an early stage, he expressed optimism that this could be among the first initiatives to materialize.
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Addressing reports about Azerbaijan’s willingness to extend an additional $1 billion loan, Aurangzeb said the financing could be structured in various ways, including deposits with the State Bank of Pakistan or support for Azerbaijani companies investing locally.
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He acknowledged that current bilateral trade, standing at under $50 million, falls far short of the two countries’ actual potential. The minister added that both sides are working to identify key sectors to help boost trade volumes and make economic cooperation more substantive.
