Leaders from Pakistan and Azerbaijan pledge enhanced trade and investment during informal discussions at the ECO summit.
In a significant development for bilateral relations, Pakistan and Azerbaijan have signed a landmark $2 billion investment agreement during the 17th Economic Cooperation Organization (ECO) Summit in Shusha, Azerbaijan. This agreement, aimed at enhancing economic cooperation and strengthening trade relations, was signed by Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar and Azerbaijan's Minister of Economy Mikayil Jabbarov, in the presence of Prime Minister Muhammad Shehbaz Sharif and Azerbaijani President Ilham Aliyev.
The agreement, which was the highlight of Prime Minister Sharif's third visit to Azerbaijan in 2025, was part of a broader push at economic diplomacy with the Central Asian republics. The meeting took place in Khankendi on July 3-4.
The final and more detailed version of the agreement will be formalized during President Aliyev's upcoming visit to Pakistan. Both countries have agreed to expand cooperation in multiple sectors, including trade, investment, water resource management, and glacier conservation. Prime Minister Sharif expressed optimism that the investment will increase manifold in the future, indicating a strong commitment to strengthening bilateral economic ties.
The ECO summit, themed as "New ECO Vision for a Sustainable and Climate Resilient Future," brought together heads of state and government from ECO member states to discuss economic and political cooperation. The Eurasian intergovernmental organization, founded in 1985 by Iran, Pakistan, and Turkiye, includes Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.
This investment comes at a crucial time for Pakistan, which is recovering from a macroeconomic crisis under a $7 billion International Monetary Fund (IMF) deal. The country is looking to capitalize on its geostrategic location to boost transit trade and foreign investment for a sustainable economic recovery.
The deepening of defense cooperation was also evident, with Pakistan signing a contract to supply JF-17 Block III fighter jets to Azerbaijan in September last year. The promotion of trade, sustaining development, and enhancing regional connectivity were the key focuses of the ECO summit.
The leaders expressed satisfaction over the progress made regarding the investment prospects and reiterated their resolve to strengthen the economic partnership, especially Azerbaijan's investment in Pakistan. The leaders' recent interactions have helped strengthen relations, with Prime Minister Sharif inviting President Ilham to visit Pakistan at his earliest convenience.
Pakistan has offered access to its southern ports in Karachi and Gwadar to these republics, further bolstering the potential for increased trade and investment. The summit concluded with a renewed commitment to fostering economic growth and cooperation between the member states.
Articles about the ECO summit may discuss the expansion of cooperation in various sectors between Pakistan and Azerbaijan, such as trade, investment, water resource management, and glacier conservation, mentioned in the news. Moreover, the investment agreement signed during the summit is not only significant for bilateral relations but also crucial for Pakistan's economic recovery, as reported in general news and travel stories that focus on the country's geostrategic location and transit trade potential.
