Pakistan has expressed optimism that the historic peace agreement reached on Saturday between Azerbaijan and Armenia will create new opportunities to advance its trade and business interests in the region.
Prime Minister Shehbaz Sharif warmly welcomed the peace deal and highlighted its potential to open fresh avenues for enhanced trade and regional connectivity. He emphasized that this development comes at a critical time as Pakistan undertakes significant economic recovery efforts under a $7 billion International Monetary Fund (IMF) program.
Leveraging its geostrategic location, Pakistan aims to boost transit trade and attract greater foreign investment to support its growth trajectory.
The announcement of the peace agreement was made at a high-profile signing ceremony held at the White House, where US President Donald Trump declared that Azerbaijan and Armenia had agreed to a lasting peace after decades of conflict, particularly over the disputed Nagorno-Karabakh region.
In response, Prime Minister Shehbaz Sharif took to social media platform X to congratulate President Ilham Aliyev and the people of Azerbaijan on what he described as a “historic agreement” embodying wisdom and vision for a peaceful future in the South Caucasus. The Prime Minister also acknowledged the instrumental role played by President Trump in facilitating dialogue and bringing both sides closer to resolving their long-standing differences.
The conflict between Christian-majority Armenia and Muslim-majority Azerbaijan has spanned decades, marked by two wars over Nagorno-Karabakh, which Azerbaijan reclaimed following a military campaign in 2023. Shehbaz Sharif reaffirmed Pakistan’s solidarity with Azerbaijan during this pivotal moment, calling the agreement the beginning of a new era of peace, stability, and cooperation in a region historically affected by conflict and humanitarian challenges.
Pakistan and Azerbaijan share close diplomatic and economic ties. Earlier this year, in July 2025, Prime Minister Shehbaz Sharif met with President Aliyev during the 17th Economic Cooperation Organisation (ECO) summit. The two leaders agreed to intensify bilateral trade and investment cooperation.
This was Shehbaz Sharif’s third visit to Azerbaijan; his previous trips, including one in May 2025, focused on promoting economic diplomacy and offering Azerbaijan access to Pakistan’s key ports of Karachi and Gwadar, enhancing regional trade connectivity.
In a significant boost to bilateral relations, Azerbaijan announced a $2 billion investment in Pakistan during President Aliyev’s visit to Islamabad in July 2024. Additionally, in September, Pakistan finalized a deal to supply JF-17 Block III fighter jets to Azerbaijan, underscoring the strengthening defense partnership between the two countries.
As the peace agreement ushers in fresh hope for stability in the South Caucasus, Pakistan stands ready to capitalize on emerging trade opportunities and deepen its strategic partnership with Azerbaijan, contributing to regional peace and prosperity.
