The contracts were signed on high-level visit of Prime Minister of Pakistan Shehbaz Sharif to Azerbaijan, which is a historic moment of bilateral relationship between two countries. The Prime Minister wrote about his meeting with the Azerbaijani President Ilham Aliyev as great and productive, emphasizing mutual interest and increased diplomatic cordiality in developing economic links.
The accords would be a significant breakthrough in the association of Pakistan and Azerbaijan, which are both the countries that have typically developed cordial foreign relationships. The Pact of investment worth 2 billion dollars which they have signed means their partnership has taken a new dimension. The official statement claims that the agreement will stimulate growth of trade and investment exchanges not only between the two countries but also it will play a role of a base to the long-term economic cooperation.
This signing ceremony was nurtured, in the presence of Prime Minister Shehbaz Sharif, to show the significance that the two parties have assigned to this partnership. The most important signatories of the agreement were the deputy prime minister and foreign minister of Pakistan, Muhammad Ishaq Dar, and an Azerbaijani minister of economy, which guaranteed the government support of both the countries.
Representatives of the two sides pointed to the fact that the agreement is an historic step in the economy relationships of Pakistan and Azerbaijan. Wide-ranging areas of cooperation tabled in the document are in the energy, infrastructure, agriculture, information technology and tourism sectors. It would create new horizons of Azerbaijani investment in Pakistan and the opposite.
The statement added that: This agreement will become a guarantee of the bilateral trade and investment improvement. The news is an indication of a collective desire to exploit the economic capabilities and the natural resources of each other. The intended partnership indicates a strategic union not targeting on trade only but additionally on regional links as well as economic maturation.
It was signed after a top-level meeting between Prime Minister Shehbaz Sharif and President Ilham Aliyev. Discussions were portrayed as effective and amicable as both leaders indicated of their eagerness to spur up efforts in the areas of commerce, energy and transport.
In his dialogue with the press, Prime Minister Shehbaz Sharif pointed out the constructive element of the visit. I had quite a productive interview with President Ilham Aliyev. We had talked about different spheres of collaboration, and I truly appreciate the fact that Azerbaijan believes in the Pakistani economic potential. The Prime Minister has also congratulated the Azerbaijani President on successful holding of the Economic Cooperation Organization (ECO) summit at which Pakistan also participated.
Though the present bilateral agreement establishes the foundation of increased collaboration, both parties have promised to conclude a more precise and in-depth pact on the territory of Pakistan on the visit of the President Ilham Aliyev. It is believed that this future agreement will be one which defines specific projects, schedules and investment avenues, and that this would cement up the economic partnership between two nations.
This strategy vision emphasises continuity and commitment in foreign investment. The staged method, as the signing of a generic accord to a fine framework, proves the intentions of both states to have realistic and effective economic results.
The nature of the investments has not been revealed yet but according to sources, there is a possibility of it majoring in energy and specifically oil and gas. Azerbaijan, which ranks among the major oil and gases producers, has also shown interest in the Pakistani energy market and wants to assist in its energy security. Another major point of collaboration that is likely to result is in infrastructure especially transport and logistics which will fit with the Pakistani ambitions of being a regional trade and commerce hub.
Tourism is another potential area of investment upon which both countries stand to gain since they can embark on cultural exchange and heritage tourism. Agriculture and food processing are also a strong potential as Pakistan has huge agricultural economy, and Azerbaijan needs diversified sources of food.
The agreement is more than an economic gain, as there has been an increasing geopolitical convergence between Azerbaijan and Pakistan. The two countries have stood behind one another in most international forums. Azerbaijan has also continuously supported Pakistan in its Kashmir issue and the same has been done by Pakistan to Nagorno-Karabakh conflict. This agreement in the priorities in foreign policy has allowed creating the slightly higher degree of confidence and collaboration. The investment agreement therefore has larger diplomatic connotations in the sense that it can strengthen political and strategic alliances through economic collaboration.
The 2 billion investment agreement between Pakistan and Azerbaijan is not the only number but a mighty emblem of boosting friendship, mutual trust, and vision on the common future. As both the countries are gearing up to undertake more detailed interactions further and with the scheduled visit of Azerbaijani President to Pakistan, the agreement is to become a milestone in the region in terms of economic interactions. The foreign policy of Pakistan seems a good idea with the visit of the PM, Shehbaz Sharif to Azerbaijan and his participation and the successful enforcement of this milestone agreement at the ECO summit. Pakistan and Azerbaijan seem ready to experience a new phase of dynamic and strategic partnership as they share common interests and have strong leadership on their part.
Dr. Sahibzada Muhammad Usman holds a PhD (Italy) in geopolitics and is currently doing a Postdoctoral Fellowship at Shandong University, China.
