In a major development at the 17th Economic Cooperation Organization (ECO) Summit, Pakistan and Azerbaijan on Friday signed a $2 billion investment agreement aimed at strengthening bilateral economic cooperation.
The agreement was signed in the Azerbaijani city of Shusha, in the presence of Prime Minister Muhammad Shehbaz Sharif, following his meeting with Azerbaijani President Ilham Aliyev in Khankendi. Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar signed the agreement alongside Azerbaijan’s Minister of Economy Mikayil Jabbarov.
“This agreement will prove to be a milestone for further promotion of brotherly relations between the two countries and for strengthening of trade partnership,” Pakistan’s state-run APP reported, quoting officials at the signing ceremony.
Speaking to media in Shusha, Prime Minister Shehbaz Sharif confirmed the agreement, describing the development as a significant leap in bilateral investment.
“Pakistan and Azerbaijan signed an investment agreement of $2 billion,” the Prime Minister stated, adding, “in future, the investment will be increased manifold.”
“We are thankful to the President of Azerbaijan for investment in Pakistan,” he remarked, calling his meeting with President Aliyev “productive and useful.”
Officials said the agreement represents a broader economic vision shared by both countries and follows months of diplomatic negotiations led by Pakistan’s Foreign Office and diplomatic missions. The final and more detailed version of the agreement is expected to be signed during President Aliyev’s upcoming visit to Pakistan.
Strategic and regional significance
Described by both governments as a “historic advancement” in bilateral relations, the agreement comes at a time when Pakistan is actively seeking to attract foreign direct investment to stabilise its economy.
The development also reflects Azerbaijan’s growing interest in expanding economic ties with South Asian markets. According to APP, the investment will focus on Pakistan’s economic sector, though specific industries have yet to be publicly detailed.
Both sides have agreed to continue exchanging delegations to promote cooperation across diverse sectors including trade, energy, infrastructure, and technology.
ECO Summit in Khankendi
Beyond bilateral talks, the ECO summit provided a platform for regional collaboration on pressing issues. Prime Minister Shehbaz Sharif said that member states agreed to enhance cooperation in trade, investment, and water resource management, as well as address the region’s vulnerability to climate change.
“The member countries at the ECO summit agreed to enhance cooperation in trade, investment, water resources and different other fields,” he said. “The member countries also agreed to increase cooperation on the issue of melting of glaciers,” he added.
The ECO Summit brought together leaders from ten regional countries, with discussions aimed at increasing intra-regional connectivity and economic integration.
The Economic Cooperation Organization (ECO) was established in 1985 by Iran, Pakistan, and Turkey as a successor to the Regional Cooperation for Development (RCD). It expanded in 1992 to include Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. Spanning over 8 million square kilometers and home to more than 460 million people, the ECO aims to enhance trade, transport, energy, and socio-economic collaboration among member states.