TURNING POINT

Azerbaijan and Pakistan: Strengthening Bilateral Ties

For many years, Azerbaijan and Pakistan have maintained a strong brotherly bond. Azerbaijan was the second country, after Türkiye, to recognize Azerbaijan's independence. Over three decades have passed since then, during which bilateral cooperation has flourished. This collaboration extends to various multilateral platforms, including the United Nations and the Organisation of Islamic Cooperation.

President Ilham Aliyev's recent state visit to Islamabad holds historic significance. Pakistanis spared no effort in giving the Azerbaijani leader a warm welcome. As his plane entered Pakistani airspace, fighter jets from the Air Force escorted him—a gesture of special respect.

Prime Minister Muhammad Shahbaz Sharif expressed optimism about the visit, stating that it would be a turning point, transforming their relations.

Mutual Support

During talks in Islamabad, President Ilham Aliyev and Prime Minister Shahbaz Sharif reaffirmed the strategic partnership between Pakistan and Azerbaijan. They expressed satisfaction with close cooperation in security and defence, emphasizing the unique trilateral format of Azerbaijan-Türkiye-Pakistan collaboration.

Sharif, in a joint press statement with Aliyev, eloquently put it: "Despite our geographical distance and different languages, our hearts beat in unison. We stand together on bilateral and multilateral issues."

Sharif also acknowledged Islamabad's support for Baku's position on Garabagh, considering Azerbaijan's victory in the 44-day war in 2020 an example of justice.

President Aliyev reciprocated by reaffirming Azerbaijan's principled stance on the Jammu and Kashmir dispute. He lamented the non-implementation of UN Security Council resolutions concerning Kashmiris, emphasizing the need for an effective mechanism to address their rights. "Our unequivocal support on the issue of Jammu and Kashmir is our commitment to the bonds of brotherhood and international law. The rights of Kashmiris have been ignored and violated for decades. The resolution of this issue is clearly spelt out in the UN Security Council resolutions. But unfortunately, these resolutions are not accompanied by an implementation mechanism," the President said.

Today, several promising areas of interaction exist between Baku and Islamabad. Key among these are military-political cooperation, trade-economic ties, and tourism.

Areas of Interaction

However, the economic aspect lags behind the robust political relationship. Despite the foundation laid in 1995—an agreement on cooperation in trade and economy and the establishment of a joint commission—the volume of mutual trade remains below $100 million. This figure does not reflect the strength of their friendship and brotherhood in joint investments, joint co-operation in areas that are mutually beneficial.

The energy partnership, limited to SOCAR's liquefied natural gas supply to Pakistan, also requires further development.

The recent meeting between the leaders of Azerbaijan and Pakistan aimed to address these challenges. The composition of President Aliyev's delegation—comprising ministers from defence, defence industry, economy, digital development, and transport—underscored their commitment to change the situation fundamentally.

The impressive array of 15 signed agreements and memoranda covers various fields of cooperation. These encompass consular relations, privatisation, transit, preferential trade, mineral resources, geology, cultural exchange, literature, information and communication technologies, television and radio broadcasting, scientific and technical collaboration, and development of small and medium-sized enterprises.

Notably, the trade agreements stand out, reflecting Azerbaijan and Pakistan's commitment to enhancing this segment and strengthening ties between their business communities. Prime Minister of Pakistan, during talks with President Aliyev, emphasized that these agreements demonstrate the intention to rapidly increase bilateral trade. Additionally, discussions included plans for mutually beneficial projects, with an expected $2 billion investment at the initial stage. The signing of relevant agreements is anticipated in November in Baku, coinciding with COP29.

Both sides recognize the immense potential to elevate trade turnover to billions of dollars in the coming years. Prime Minister Sharif expressed confidence that Pakistan would work diligently to match Azerbaijan's pace as a brotherly country, translating discussions into concrete actions.

President Aliyev highlighted the consideration of projects across energy, infrastructure, communications, and defence industry. These efforts aim to build strong partnerships not only at the political level but also in terms of trade investments.

Furthermore, the joint statement by the leaders revealed another noteworthy development: Azerbaijan proposed its own plan for improving Islamabad (which Sh. Sharif, according to the Pakistani media, called a reconstruction plan), an initiative already underway.

Tempting Offers

Anticipating President Aliyev's visit, Pakistan's media shared intriguing details. The Petroleum Department proposed various cooperative projects, including underground gas storage, the White Oil Pipeline, liquefied petroleum gas infrastructure, and investment opportunities in copper and gold mining. A joint venture between Pakistan State Oil (PSO) and SOCAR, along with Azerbaijan's interest in offshore and onshore exploration blocks, further enriches the collaboration.

Telecommunications cooperation may also involve establishing IT campuses in Azerbaijan. Trade expansion plans include boosting exports of pharmaceutical products and smartphones from Pakistan. Additionally, proposals related to livestock feed, corporate farming, and exporting rice and wheat to Azerbaijan are on the table.

Pakistan's Federal Minister for Petroleum and Water Resources, Musadik Malik, highlighted Azerbaijan's keen interest in mineral resources, particularly oil and gas, and its commitment to expanding investment in the liquefied natural gas sector.

Separate discussions on oil and gas cooperation between Baku and Islamabad took place during I. Aliyev's visit to Pakistan at the meeting between Energy Minister Perviz Shahbazov and Musadik Malik. The Pakistani side made a special presentation highlighting opportunities to enhance trade and investment relations. It was emphasized that Pakistan is eager to diversify markets in the region and participate in economic corridors that connect Central Asia to Europe, most likely the Middle Corridor.

Malik also pointed out substantial investment prospects in the mining industry, particularly in gold and copper extraction. According to the Pakistani representatives, Azerbaijan has significant experience in the mining sector and can collaborate on joint initiatives in this area. Federal Minister of Energy Sardar Awais Khan Leghari discussed sectors within the energy industry where Azerbaijani investments could yield high returns.

According to official information from the Government of Pakistan, the meeting concluded successfully: "The Azerbaijani side expressed its sincere desire to begin working on the proposals submitted by the Pakistani side regarding trade expansion and, in this regard, decided to activate working groups between the two countries. The sides agreed to appoint responsible individuals, compile a list of projects, and submit them to management for approval as soon as possible." The Pakistani Foreign Ministry stated that President Ilham Aliyev's visit to Islamabad would serve as a catalyst for economic cooperation between the two nations.

This outcome seems likely. The agreements reached are expected to move beyond paperwork and transition into practical implementation in the near future.