In a significant move to bolster bilateral relations, Pakistan and Azerbaijan have committed to enhancing cooperation in defence, trade, and investment. This commitment was reaffirmed during a meeting between Prime Minister Shehbaz Sharif and Azerbaijani President Ilham Aliyev in the city of Lachin, Azerbaijan, on May 27, 2025. The meeting took place on the eve of the Pakistan-Turkiye-Azerbaijan Trilateral Summit, coinciding with Azerbaijan’s Independence Day, underscoring the deepening ties between the two nations.
Defence Cooperation
The leaders discussed expanding defence collaboration, including the joint manufacturing of defence equipment. This initiative aims to enhance the military capabilities of both countries and promote regional stability. Notably, Pakistan has signed a contract to sell JF-17 Block III fighter jets to Azerbaijan, marking a significant step in defence cooperation.
Trade and Investment
Pakistan and Azerbaijan have agreed to increase bilateral investment to $2 billion, focusing on areas such as infrastructure development, energy, mining, and other mutually beneficial projects. The leaders emphasized the importance of establishing chambers of commerce to facilitate trade and promote economic growth. Memorandums of Understanding (MoUs) were signed to enhance cooperation in these sectors.
Energy Collaboration
Energy cooperation was a key focus, with both countries aiming to strengthen ties in the energy sector. The State Oil Company of Azerbaijan Republic (SOCAR) and Pakistan’s Frontier Works Organisation (FWO) and Pakistan State Oil (PSO) signed an MoU for collaboration on the Machike-Thallian-Tarujabba White Oil Pipeline Project. Additionally, SOCAR extended its LNG framework agreement with Pakistan, aiming to enhance energy security and supply.
Cultural and Educational Ties
The leaders also discussed enhancing cultural and educational exchanges. Plans were made to establish direct flights between Baku and Islamabad, with potential extensions to Karachi and Lahore, to promote tourism and strengthen cultural ties. An MoU was signed to foster cooperation between Nakhchivan, an autonomous city in Azerbaijan, and Lahore, focusing on areas such as culture, tourism, urban development, education, economy, and science and technology.
The discussions between Prime Minister Shehbaz Sharif and President Ilham Aliyev reflect a shared commitment to deepening the strategic partnership between Pakistan and Azerbaijan. Through enhanced defence cooperation, increased trade and investment, strengthened energy ties, and expanded cultural and educational exchanges, both nations aim to foster mutual prosperity and contribute to regional stability.
