Azerbaijan-Pakistan: A great regional equaliser |
AZERBAIJAN-Pakistan relations have become a great regional equalizer because of emerging but conflicting geo-economics and geo-political scenarios, opening new window of opportunities for both countries, communities and enterprises to make investments in the diverse fields of economy, trade & commerce, joint ventures, agriculture, IT, disaster management, climate change, energy and last but not least military cooperation and joint production securing their economic prosperity and geopolitical leverages.
Moreover, historical ties, religious interfaith harmony, cultural reinvention, re-connection and Azerbaijan-Pakistan’s connectivity started many centuries ago in the shape of “Multani Caravanserai” to “Hajji Zeynalabdin” and from Bibi-Heybat to Bibi Pak Daman linked people and communities alike.
Additionally, from late Heydar Aliyev to President Ilham Aliyev and from late Benazir Bhutto to incumbent Prime Minister Shehbaz Sharif caravans of true friendship, brotherhood, mutual respect, love and harmony have been achieving and securing new heights since its beginning. It is pertinent to mention that the two countries also share similar positions on several regional and international issues such as the Kashmir dispute and the Karabakh. Both countries have expressed support for each other’s stance on these issues. Furthermore, Azerbaijan and Pakistan share a close historical and cultural bond and have maintained close economic ties.
Definitely, the famous Nagorno-Karabakh War 2020 further strengthened bilateral military cooperation between the two brotherly countries which is a good omen for greater regional peace, stability and harmony. The increasing military cooperation has enhanced strategic deterrence, preparedness and professionalism. In a short span of time both countries have established exemplary relations. Pakistan views Azerbaijan as an important investment partner and the growing trade between Pakistan and Azerbaijan confirms that deeper economic integration is moving in the right direction. Both countries hold an ideal position in South Asia and the South Caucasus that may serve as a connecting bridge between Central and South Asia for the development of trade routes and Middle Corridors.
The surge in bilateral economic and trade during 2025-2026 seems to be significant, diverse, positive, productive and participatory, creating a constructive environment pivoting towards a strategic partnership with investment commitments exceeding $2 billion. Key focus areas include energy infrastructure, mining, agriculture and IT, supported by enhanced air connectivity (including daily flights) to foster tourism and commerce. Comparative studies reveal that Azerbaijan-Pakistan relations in 2025–2026 are focused on strengthening a strategic partnership with a significant $2 billion investment agreement, signed by PM Shehbaz Sharif and President Aliyev, targeting energy, infrastructure and trade. Both nations are expanding cooperation in defense, connectivity and tourism, including high-level visits and numerous MoUs signed to deepen economic ties.
The bilateral ties are gaining momentum in terms of multiple high-level meetings, including PM Shehbaz Sharif’s visits to Baku and the 4th Round of Bilateral Political Consultations in Islamabad in early 2025.Azerbaijan-Pakistan relations have strengthened under the current government, marked by high-level engagements, including visits by Prime Minister Shehbaz Sharif and Pakistan’s participation in COP29 in Baku. The main focus is now on expanding trade and investment flows, particularly in energy, oil, gas and mining. Further strengthening economic ties, Azerbaijan has also pledged to provide a $1 billion loan to Pakistan, which could take various forms, including direct placements with the State Bank of Pakistan or supporting Azerbaijani investors operating in Pakistan. Azerbaijan and Pakistan signed multiple MOUs and agreements to boost bilateral cooperation in different fields including trade, energy, tourism and education. The two countries signed an MoU between the State Oil Company of Azerbaijan Republic (SOCAR) and Pakistan’s Frontier Works Organization (FWO) and PSO for collaboration in Machike-Thallian-Tarujabba White Oil Pipeline Project. The two sides also signed an amendment agreement to Framework Agreement for the sale and purchase of LNG cargoes related to Master LNG Sale and Purchase Agreement. An MoU was also signed between Azerbaijan’s city of Nakhchivan and Pakistan’s city of Lahore to promote cooperation in the areas of culture, tourism, urban development, education, science, economy and other relevant fields of public life.
In summary, the writer suggests that for further diversification of economic ties and expansion of trade both countries should focus on implementing the Preferential Trade Agreement signed in 2024 to increase mutual trade volumes, aiming for a shift beyond political ties to actionable business partnerships between Azerbaijan and Pakistan. Enhanced direct air connections have promoted tourism, with roughly 90,000 Pakistani tourists visiting Azerbaijan in 2025. It is high time that both countries consider forming a joint tourist facilitation company to further boost this sector connecting cultures, communities and civilizations. Pakistan’s position as the shortest route to Afghanistan and Central Asia and Azerbaijan’s key role in the Trans-Caspian International Trade Corridor should be further connected in the days to come.
Pakistan is keen to learn from Azerbaijan’s progress in technology-led service centers, artificial intelligence, fintech and cyber security. The inauguration of the first Pakistan Asaan Khidmat Markaz in Islamabad on January 14, 2026 has further strengthened this partnership. This center is modeled after Azerbaijan’s renowned ASAN Service to provide efficient and transparent public services. The writer proposes expanding cooperation in ICT, artificial intelligence, drones, the JF-17 Thunder Block III radar systems, electronic warfare equipment, joint military training, banking, SMEs, infrastructure, mining and construction. At the regional level meaningful participation in the Shanghai Cooperation Organization, China-Pakistan Economic Corridor and Belt and Road Initiative would further strengthen cooperation and regional stability.
—The writer is President, the Centre for Knowledge and Public Policy, Regional Expert: China, CPEC, BRI & World Affairs.