PM set to visit Azerbaijan from 24th

ISLAMABAD: Prime Minister Shehbaz Sharif is all set to leave for Azerbaijan for a two-day official visit on February 24-25 with a focus on increasing bilateral trade, top official sources told The News. “The trade between the two countries is not up to the mark as Pakistan’s exports to Azerbaijan were valued at approximately $5.64m in 2023. In 2022, the total bilateral trade between Pakistan and Azerbaijan amounted to $52.3m, with Pakistan’s exports at $26.1m and imports at $26.2m.

“Notably, in February 2024, Pakistan signed an agreement with Azerbaijan for the sale of JF-17C Block-III fighter jets, valued at $1.6 billion. In July 2024, during the visit of Azerbaijan President Illham Aliyev to Pakistan, both countries agreed to enhance the bilateral investment level of up to $2 billion in areas of mutually beneficial projects.”

Now in the upcoming visit of Prime Minister Shehbaz Sharif, the top officials said, both countries are likely to sign the agreement on the establishment of an international trading company in Singapore as a Joint Venture between Pakistan State Oil (PSO) and State Oil Company of Azerbaijan Republic (SOCAR). The federal cabinet has already ratified the decision of ECC approving the establishment of this company. This will be the first ever company to be set up by PSO in Singapore for trading LNG and other energy products. PSO will soon deposit $0.5 million in any bank in Singapore for the registration of its company.

The government has come up with this idea for purchasing LNG in the spot market setting aside PPRA rules. SOCAR is already in LNG business in the international market and PSO can take advantage of the links SOCAR has to thrive in the international market. However, the issues like percentage of shareholding between the two entities and how the trading company will run are being finalised.