ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday said Pakistan and Azerbaijan were working to translate their strong relations into tangible trade and investment outcomes, with Azerbaijan expressing an appetite to invest close to $2 billion in Pakistan.
In an interview with Report, the minister said bilateral relations, particularly with Azerbaijan, had grown stronger since the current government assumed office, with frequent high-level engagements including visits by Prime Minister Muhammad Shehbaz Sharif and Pakistan’s participation during the COP29 timeframe in Baku.
He said the focus was now on enhancing trade and investment flows, adding that energy, oil and gas, as well as minerals and mining, had emerged as key sectors for potential joint projects. “These are clear areas of focus as we move forward,” he remarked.
Providing details on the proposed investment package, Senator Aurangzeb said discussions were underway with Azerbaijan’s state oil company SOCAR, which was exploring the possibility of investing in an oil pipeline project in Pakistan. He termed the talks as being at an early stage but expressed hope that it could be among the first projects to materialize.
Commenting on Azerbaijan’s readiness to provide a further $1 billion loan to Pakistan, the finance minister said the financing could take multiple forms, including placements with the State Bank of Pakistan or support for Azerbaijani investors operating in Pakistan. He emphasized that Pakistan was not seeking aid, but rather sustainable financing linked to trade and investment activities.
On cooperation in the digital economy, the minister said Pakistan was keen to learn from Azerbaijan’s progress in technology-led service centers, artificial intelligence, fintech, and cyber security. He added that Pakistan’s journey towards becoming a “Digital Pakistan” offered scope for collaboration in payment systems, digital infrastructure, Web 3.0, and AI.
Looking ahead, Senator Aurangzeb highlighted the importance of South-South cooperation amid stress in the global trade regime, noting that new trade corridors linking Pakistan with Central Asian republics, particularly Azerbaijan, could become strategically important over the next five years.
He said current bilateral trade of less than $50 million did not reflect the true potential of the two economies, and efforts were underway to identify priority sectors to make trade flows more meaningful.
The minister also underscored the need for developing financial instruments such as joint grants, guarantees, export credit insurance, and Islamic finance to support bilateral trade and investment. He said facilitation measures, including opening bank offices and representative branches in both countries, would play a crucial role in advancing the ambitious economic agenda between Pakistan and Azerbaijan.
