Central Asian state agrees to sign mous for large-scale capital infusion in multiple sectors, further enhancing economic cooperation between the two nations

In a significant move aimed at boosting Pakistan’s economy, Azerbaijan has approved an investment plan of up to $3 billion across various sectors. The announcement, made during a recent cabinet meeting, was disclosed by Prime Minister Shehbaz Sharif, who revealed that the Central Asian nation has agreed to enter into memoranda of understanding (MoUs) for capital injections ranging from $2 billion to $3 billion.

The planned investment is expected to provide a much-needed economic stimulus for Pakistan, contributing to the growth of key industries. The sectors to benefit from this financial boost include energy, technology, and infrastructure, though the exact areas of investment remain to be formalized. This development marks a step towards deepening economic ties between Azerbaijan and Pakistan.

Prime Minister Sharif also shared the government’s ongoing efforts to enhance international economic cooperation, particularly following his recent trip to Saudi Arabia. He informed the cabinet of a delegation’s visit to Riyadh, where discussions are underway to explore opportunities for collaboration in productive sectors such as solar energy, mining, and information technology. These discussions are seen as pivotal in addressing the economic challenges faced by Pakistan, while also positioning the country as a key partner in the region.

In addition to this, Sharif highlighted the increasing demand for IT professionals in the Gulf region, particularly in Saudi Arabia. With Pakistan having a strong pool of skilled IT talent, the prime minister emphasized the potential for the country to meet the growing needs of the Gulf economies with minimal effort. He instructed the Ministry of Information Technology and Telecommunication to develop a detailed strategy for producing a workforce that meets international standards and can capitalize on the regional demand.

Sharif also noted the positive impact of the recent reduction in Pakistan’s policy rate, which was slashed by 250 basis points by the State Bank of Pakistan, bringing the rate down to 15%. He expressed optimism that this reduction is a clear indication that the government’s efforts to stabilize the economy are beginning to bear fruit. The move to lower interest rates is expected to help stimulate investment, support businesses, and ease the financial burden on citizens.

Azerbaijan’s planned investment, combined with the broader efforts to strengthen ties with Saudi Arabia and the Gulf region, is seen as a positive sign for Pakistan’s economic future, especially as the country continues to navigate its recovery from previous economic challenges.