ISLAMABAD/BAKU: The Federal Cabinet has approved an agreement to procure liquefied natural gas (LNG) cargo from Azerbaijan at discounted rates, according to a statement issued by the Prime Minister House on Thursday.
The statement added that Prime Minister Shehbaz Sharif informed Azerbaijan’s President Ilham Aliyev about the cabinet’s decision during a meeting in the Azeri capital, Baku.
The statement said that this is Pakistan’s second major achievement in meeting its energy needs after receiving crude oil shipments from Russia recently.
Under the agreement, Pakistan will receive an LNG cargo at discounted rates from next month.
The Prime Minister’s Office said that Prime Minister Shehbaz has been working on an agreement with Azerbaijan for the past six months. The two leaders agreed that Azerbaijan will help Pakistan meet its energy needs through cooperation in the oil and gas sectors.
According to the Prime Minister’s Office, Pakistan State Oil (PSO) and State Oil Company of the Republic of Azerbaijan (SOCAR) will cooperate on a government-to-government basis to work on energy resources.
It was agreed that Azerbaijan will invest in Pakistan’s alternative energy sector, including solar energy production. On Thursday, Prime Minister Shehbaz Sharif and President of Azerbaijan Ilham Aliyev held a detailed discussion on bilateral relations in a meeting at Zogulba Palace in Baku.
The Prime Minister along with a high-level delegation is on a two-day official visit to the capital of Azerbaijan at the invitation of President Aliyev.
Pakistan and Azerbaijan agreed to enhance bilateral cooperation in the fields of energy, trade and aviation to reflect the decades-old strong ties between the two countries. In a joint press stakeout after their bilateral meeting, the two leaders told the media that they will introduce Azerbaijan Airlines flights between Islamabad and Baku and explore ways of cooperation in the fields of energy, investment and education. The military will increase the number of exercises. .
Prime Minister Shehbaz, who earlier visited Azerbaijan’s first President Heydar Aliyev’s Mausoleum and Martyrs’ Memorial, praised President Ilham Aliyev’s leadership for building the city’s infrastructure and impressive horticulture.
Citing the “pleasant surprise” of Baku’s cleanliness and beauty, the Prime Minister requested the President of Azerbaijan to lend his experts in horticulture and waste management to Islamabad. He told the media that during the “excellent” talks there was “complete consensus” on various bilateral and multilateral issues as the relationship was built on mutual trust and sincerity of purpose. The Prime Minister said that Pakistani flags all over Baku express the love between the two peoples.
“Though our ties are so strong over time, they do not reflect their intensity through trade and investment, exchange of visits and other important areas of cooperation,” he remarked.
Emphasizing cooperation in the energy sector, he said that being an energy-scarce country, Pakistan relied on expensive imported fuel, spending $27 billion last year due to import inflation and oil prices due to the Ukraine crisis. The challenges of rising prices were becoming unaffordable. The prime minister said his government is committed to replacing expensive imported fuel with solar energy to support industries, exports, trade and offices. He thanked the President of Azerbaijan for removing the duty on Pakistani rice to facilitate the export of the commodity to the friendly country.
He said that Pakistan welcomed Azerbaijan Airlines to start operations in Islamabad and invited the country’s aviation minister to come to Pakistan to work on Baku-Karachi flights to promote bilateral tourism.
The Prime Minister thanked Azerbaijan for being a strong supporter of the rights of Kashmiris and highlighted India’s terrorism and atrocities in the occupied valley, including violations of UN resolutions.
He reiterated that Pakistan is committed to the territorial integrity of Azerbaijan and appreciates the bravery of its forces in fighting for the country’s rights.
Highlighting the immense opportunities offered by Gwadar Port, the Prime Minister said that the two countries can cooperate to increase trade. He told the media that the defense cooperation between Pakistan and Azerbaijan is not a hidden thing because it is not for any aggression but for the peace of the region.
Inviting President Ilham Aliyev to visit Pakistan, the Prime Minister said that he is also looking forward to the delegations of Ministers of Economy, Aviation and Energy of Azerbaijan to hold long discussions on cooperation in petroleum and solar energy sectors.
In his remarks, President Ilham Aliyev welcomed the Prime Minister and his delegation to Baku and said that the two countries have agreed to increase cooperation in the fields of energy, defense and education.
He said that Azerbaijan hopes to host more Pakistani students and Azeri students studying in Pakistani universities have played a role in strengthening bilateral relations. He told the media that both sides have agreed to increase the number of military exercises as military capability is of utmost importance in view of the changing situation.
He said that a strong military capability guarantees independence and territorial integrity because Azerbaijan also liberated the Karabakh region through its military might, not through negotiations.
Meanwhile, Pakistan and Azerbaijan have signed a memorandum of understanding to enhance bilateral cooperation, especially the volume of energy trade. The document was signed by Commerce Minister Syed Naveed Qamar and Azerbaijan’s Economy Minister Mikael Jabarov in a ceremony attended by Prime Minister Shehbaz Sharif and members of his cabinet.
This document establishes a framework for promoting closer cooperation between Azerbaijan and Pakistan and promoting trade between the two countries.
Recognizing the importance of expanding their friendship and economic partnership, the ministers expressed their commitment to diversify trade and enhance economic growth through this agreement.
Under the agreement, the two countries will cooperate to create favorable conditions for mutual trade by exchanging trade information, organizing events, conducting studies to identify exportable products and promoting economic cooperation.
To this end, the two countries agreed to intensify their efforts to finalize a Preferential Trade Agreement (PTA) by early August 2023.
They emphasized the potential benefits that the PTA would bring and reaffirmed their commitment to work collaboratively to achieve the common goals outlined in the Memorandum of Understanding.
The signing of this agreement marks an important milestone in the economic partnership between Azerbaijan and Pakistan, which will strengthen the foundation for increased trade and economic cooperation. It is expected to create new business opportunities, increase bilateral investment and contribute to the overall development and prosperity of both countries.
