Prime Minister Shehbaz Sharif said on Monday that Pakistan and Azerbaijan would sign deals in April, boosting bilateral investments to $2 billion, state-run Radio Pakistan reported.

The announcement came as the premier met with Azerbaijan’s President Ilham Aliyev in Baku, where he had arrived yesterday on a two-day official visit.

Pakistan and Azerbaijan enjoy a long-standing bond of brotherhood, underpinned by shared values and common aspirations. PM Shehbaz’s visit underscores the commitment of both nations to deepening bilateral ties, enhancing economic cooperation and fostering regional collaboration.

“Pakistan and Azerbaijan have decided to enhance the scope of bilateral investment up to $2bn in areas of mutually beneficial projects,” the report stated, adding that the decision was made during their talks between the two leaders.

Addressing a joint press conference with President Aliyev later, PM Shehbaz said: “I am extremely grateful to you when you announced that Azerbaijan will invest $2bn dollars in Pakistan in ventures that are mutually beneficial, which will bring dividends to both countries.”

Noting that a month’s deadline had been given to “both sides to finalise all arrangements”, the premier also confirmed that a delegation from Azerbaijan would be visiting Pakistan in April to sign those deals.

“In the month of April, God-willing, once everything is discussed and decided, I will be deeply honoured and extremely happy to receive you in Islamabad to ink these agreements,” he said.

Highlighting the defence ties between the countries, the prime minister called for enhancing those by having “joint defence production facilities”. “When the Azerbaijan delegation visits Pakistan in April, this will be one of the high-priority agendas,” PM Shehbaz said.

In September last year, Azerbaijan bought JF-17 Block III fighter jets from Pakistan, reportedly in a $1.6bn deal.

Speaking about the Memorandums of Understanding (MoUs) on an oil project, the premier said they would “go a long way in promoting our sincere efforts to have very good dividends in the times to come”.

“State Oil Company of Azerbaijan Republic (Socar) and their Pakistani counterpart have extended the LNG framework by another two years. A trading company has also been established.”

The prime minister also highlighted the feasibility of the Gwadar port as a “destination for imports and exports”, asserting it would have a very positive impact on the entire region.

“Our friendship and brotherhood extend from the warm waters of the Arabian Sea to the Caspian Sea, and we will solidify and expand this friendship,” PM Shehbaz pledged.

Meanwhile, President Aliyev also confirmed his country’s plans to invest “up to $2bn in Pakistan’s economy”.

“We need to increase our trade turnover. We have a way to do it, especially considering Azerbaijan’s plan to invest up to $2bn in Pakistan’s economy, which I announced during my state visit to Pakistan last summer,” he said during the press conference.

President Aliyev regretted that the bilateral trade turnover was only several tens of millions of US dollars that needed to be increased.

“I think we have the way how to do it,” he said adding that “we received concrete projects from Pakistan, and Azerbaijani representatives are evaluating them. Today we put ambitious and realistic targets to finalise all the discussions within one month and by the beginning of April, the documents will be prepared for signing”.

The president of Azerbaijan emphasised that these projects covered infrastructure development areas as well as energy, economic, mining and others.

He said during his meeting with PM Shehbaz, they discussed important issues and reaffirmed their resolve to continue to support each other on all issues of international relations.

He said they also discussed numerous issues of current international development and cooperation in the defence area, including the defence industry.

“Azerbaijan has already acquired defence equipment from Pakistan and we are satisfied with the quality of this equipment and we will continue to do it.”

At the same time, he said, they also discussed the opportunity of joint manufacturing in defence industrial items, which would be another important sector of bilateral cooperation.

As regards connectivity and transportation sectors, the president said that people-to-people contacts had also been developed successfully between the two countries.

“With regular airlines connection, the number will grow and we will see more regular interactions between the two countries.”

Praising PM Shehbaz, he said the government’s step steps brought important results in areas of economy and political stability. “All is due to your hard work and the work of your team, and we as your brother and friend, are really happy about the achievements under your leadership,” he added.

The leader’s press conference came after the two held a bilateral meeting earlier today.

PM Shehbaz was received by President Aliyev at the Presidential Palace in Baku and was presented with a guard of honour, while the national anthems of both countries were played as well, Radio Pakistan reported.

MoUs signed

Following the high-level meeting between PM Shehbaz and President Aliyev, the two leaders also witnessed a ceremony to sign MoUs and agreements.

The agreements were aimed at boosting bilateral cooperation in different fields including trade, energy, tourism and education, according to Radio Pakistan.

The two countries signed an MoU between the State Oil Company of Azerbaijan Republic (Socar) and Pakistan’s Frontier Works Organisation (FWO) and the Pakistan State Oil (PSO) for collaboration in the Machike-Thallian-Tarujabba White Oil Pipeline Project.

Pakistan and Azerbaijan also signed an agreement to amend the Framework Agreement for the sale and purchase of liquefied natural gas (LNG) cargoes related to the Master LNG Sale and Purchase Agreement, the report added.

An MoU was also signed between Azerbaijan’s city of Nakhchivan and Lahore to promote cooperation in the areas of culture, tourism, urban development, education, science, economy and other relevant fields of public life.

As part of his engagements, PM Shehbaz and the Azerbaijani leadership will also address the Pakistan-Azerbaijan Business Forum today to boost the trade and investment relationship between the two countries, the Associated Press of Pakistan reported.

The premier will pay tribute at the Victory Monument dedicated to the heroes and martyrs of the 44-day Nagorno-Karabakh war. President Aliyev will then host a dinner reception in honour of the prime minister and his delegation, the report added.

During his visit, PM Shehbaz will also participate in delegation-level talks to discuss areas of mutual interest and cooperation.

The discussions will focus on strengthening bilateral relations, expanding trade and investment, enhancing cooperation in the energy sector, synergising efforts to deal with climate change, deepening defence collaboration, and fostering cultural exchanges.

The prime minister is accompanied by Deputy PM and Foreign Minister Ishaq Dar, Minister for Commerce Jam Kamal Khan and other officials.

After landing in Baku last night, PM Shehbaz said he was looking forward to productive discussions with Azerbaijan’s leadership for further strengthening deep-rooted bilateral relations.

“Landed in the beautiful city of Baku, where the past and future converge in a vibrant embrace. The city looks even more enchanting under a blanket of snow!” he said in a post on X.

“Looking forward to productive discussions for further strengthening the deep-rooted bonds between Pakistan and Azerbaijan. We also seek to enhance our trade and investment ties,” he added.