Pakistan Prime Minister Shehbaz Sharif and President of Azerbaijan Ilham Aliyev shake hands during a meeting in Baku on June 15, 2023. Image Credit: PM Office

Islamabad: Pakistan and Azerbaijan are set to enhance their partnership as they prepare to expand cooperation in crucial sectors such as energy, defence, and trade.

Pakistani Prime Minister Shehbaz Sharif and President of Azerbaijan Ilham Aliyev engaged in constructive discussions on topics, including bilateral cooperation, regional development, and mutual security concerns during PM Sharif’s two-day official visit (June 14-15) to Baku.

The talks focused on bolstering ties and identifying areas of mutual benefit. “We agreed that soon several delegations from Azerbaijan will visit Pakistan. One on trade and investment mission, another on issues related to energy cooperation, and the third will address the issues of cooperation in the defence industry” President Aliyev said at a joint press stakeout following the bilateral meeting.

Energy collaboration

Following the visit of PM Sharif, Azerbaijan has agreed to initiate liquefied natural gas (LNG) shipments to Pakistan starting July 2023, Pakistan’s PM Office confirmed. The two sides decided to commence the LNG shipments from Azerbaijan to Pakistan on a monthly basis, with concessional rates being applied to each cargo. To facilitate the collaboration on energy resources, the Pakistan State Oil (PSO) and State Oil Company of the Azerbaijan Republic (SOCAR) will engage in government-level cooperation. This week, Pakistan received its first shipment of discounted crude oil from Russia.

In Baku, PM Sharif expressed a desire to collaborate with Azerbaijan in the field of petrochemicals and solar energy. The prime minister extended invitations for Azerbaijani delegations to visit Pakistan, focusing on the economic, trade, aviation, and energy sectors. He assured President Aliyev that all necessary measures would be taken to facilitate swift progress, emphasizing transparency and the removal of bureaucratic obstacles.

Trade ties

The leaders agreed on the importance of further strengthening ties through increased bilateral trade and investment. To kickstart this process, a Memorandum of Understanding (MoU) will be signed to facilitate preferential trade between Pakistan and Azerbaijan. Both sides would begin work on developing a comprehensive list of preferential trade items between the two nations. In Baku, the two sides signed the Statement of Understanding for the promotion of bilateral trade.

Defence

The leaders also discussed defence cooperation and emphasized the importance of maintaining strong military capabilities to ensure independence and territorial integrity. They agreed to increase the number of joint military exercises in response to evolving global security challenges.

Tourism and Education

Tourism cooperation was also on the agenda, with plans for Azerbaijan Airlines (AZAL) to commence direct flights between Baku and Islamabad. PM Sharif proposed extending these flights to Karachi and Lahore to boost tourism and strengthen cultural ties.

Education emerged as another key area for cooperation, with President Aliyev noting a significant increase number of Pakistani students studying in Azerbaijan’s universities over the past year. He expressed hope for continued educational exchanges.

Cultural ties

PM Sharif praised his warm reception upon landing in Azerbaijan, noting the presence of Pakistani flags throughout Baku.

During his speech, he emphasized the mutual affection between the people of Azerbaijan and Pakistan. President Aliyev emphasised the deep-rooted connections, saying: “You can see in many parts of Baku Pakistani flags. They have been installed here during the times of the Second Karabakh War. And they are still here, despite the fact that the war ended two and a half years ago.”

This enduring display serves as a genuine reflection of the sentiment among the people of Azerbaijan as demonstrated by their brothers from Pakistan, he said. He also thanked Pakistan for its unwavering support during Azerbaijan’s territorial conflict in 2020.

Concluding the visit, Pakistan’s prime minister extended an invitation to President Aliyev to visit Islamabad to further strengthen the partnership.