It seems that Prime Minister Shehbaz Sharif’s most recent visit to Azerbaijan has started a new phase in the bilateral sphere further developing and diversifying the scope, utility, pace and momentum in diverse sector of economy, investment, joint ventures, agriculture cooperation, industrial coordination, infrastructure collaboration, energy oil & gas mutually befitting propositions and last but not least, defence connections.
Obviously mutual agreement to increase bilateral investment to US$2 billion, focusing on mutually beneficial projects vividly reflecting close liaison of highest political leadership, prompt policy framework of policy makers, valuable contributions of numerous ministries, departments and last but not least, chambers of commerce working jointly for the further strengthening of bilateral trade, brightening of inflows of investments and consolidating pace and progress of projects.
Interestingly, during a joint news conference with Azerbaijan’s President H.E. Ilham Aliyev the PM rightly conveyed the message of national unity and political harmony to strengthen ties with Azerbaijan which should be appreciated. Thus expansion of economic cooperation and immense socio-economic integration is the way forward for the further strengthening of the cordial relationship between the two countries.
Moreover, further strengthening of defence relations between Pakistan and Azerbaijan especially after the sale of JF-17 Thunder bloc III has become a grand matching box emphasizing on joint production of 5th generation war jet fighter, drone production, tank, laser, ballistic missile, electronic war gadgetry and last but not least surveillance planes.
Thus Prime Minister Shehbaz Sharif rightly highlighted the importance of strengthening defence relations between Pakistan and Azerbaijan. It is suggested that keeping in view the rapidly changing geopolitical and geostrategic situation in South Caucasus both countries should also consider strengthening peaceful nuclear energy cooperation.
Evidently President Ilham Aliyev’s geo-economics vision has successfully transformed his macro-economy, industry, manufacturing capacity, human capital and renewable development of Azerbaijan. Zangezur Corridor is a proposed transport route designed to connect Azerbaijan’s mainland with its exclave, the Nakhchivan Autonomous Republic, bypassing Armenia’s Syunik Province which has great strategic importance.
In response to Armenia’s opposition, the policy makers of Azerbaijan have also intensified its efforts to establish an alternative transit route through Iran, commonly referred to as the Aras Corridor. This initiative includes the construction of new road and railway links that would facilitate seamless transit between Azerbaijan’s mainland and Nakhchivan via Iranian territory.
The endorsement of Prime Minister Shebbaz to Azerbaijan’s proposal for an international infrastructure corridor has further brightened the scope of trans-regional connectivity in which Gwadar Port would play a key role in facilitating trade and boosting the regional economy. Thus both countries are moving in the right direction.
Additionally, the signing of multiple agreements to strengthen cooperation in trade, energy, tourism, education, and other key sectors during Prime Minister Shehbaz Sharif’s official visit to Baku clearly demonstrates strengthening of bilateral relations between two countries.
One of the key agreements includes an MoU between Azerbaijan’s State Oil Company (SOCAR) and Pakistan’s Frontier Works Organization (FWO) and Pakistan State Oil (PSO) for collaboration on the Machike-Thallian-Tarujabba White Oil Pipeline Project.
Moreover, SOCAR separated MoUs with Pakistan Refinery Limited (PRL) and PSO to boost energy cooperation, including the sale and purchase of LNG cargoes and petroleum products highlighting increasing energy cooperation between two countries.
It is suggested that mutual cooperation in the fields of hydrogen power generation, green technologies (solar, wind), lithium batteries, EVs and joint hydro power may be initiated as soon as possible creating numerous win-win situations for both the countries and their private sectors.
Another agreement was signed to amend the existing framework for LNG trade between both nations, allowing Pakistan LNG Limited to strengthen its energy supply chain through Azerbaijani resources. It is indeed a value addition creating a beneficial environment for the further strengthening of energy cooperation. 
The signing of an MoU establishing cooperation between Nakhchivan, an autonomous city in Azerbaijan, and Lahore would foster cultural and economic ties, urban development, education, and science and technology in the days to come.
The writer suggests that the policy makers of both countries should accelerate the shift to renewable energy by strengthening energy cooperation, attracting private investment in renewable energy projects, battery storage, and promoting the development of green energy corridors.
Advancing the development of climate-resilient urban ecosystems including green buildings and climate-smart agriculture practices, as well as by improving water efficiency and security, including through expanding private sector participation would further strengthen bilateral economic ties.
Cooperation in infrastructure development in the newly liberated areas, smart living, metal & mining, hybrid agriculture, SMEs, IT, Startups, digitalization, e-commerce, banking and finance, science & space, textiles, automobiles, engineering and higher education should be started immediately.
In summary, the visit of Prime Minister Shehbaz Sharif’s most recent visit to Azerbaijan has become a giant step in bilateral trade and investment relations and hopefully will be a huge reflection of their fraternal ties.
It is Sharif’s second visit to Azerbaijan since taking office in February of last year. According to reliable diplomatic sources Aliyev is expected to sign final agreements for investment during a visit to Pakistan in April 2025.
Prior to the trip, Pakistan’s Economic Cooperation Committee approved a three-year extension of the LNG Framework Agreement between SOCAR and Pakistan LNG Limited. Signed in 2023, the agreement allows Pakistan to procure one shipload of LNG per month when required, without any financial commitments. Such an agreement allows Pakistan to purchase energy products as needed rather than using precious foreign exchange reserves to pay for unused cargo.
The author proposes that formation of joint military production company, joint anti-terrorism force, joint development company/bank, joint tourism mechanism and last but not least joint freight company would further gear bilateral economic ties. Pak-Azerbaijan Joint Chamber of Commerce has become a value addition. There is an urgent need to adopt a new productive business model to promote bilateral trade and investment cooperation between two countries.
