ISLAMABAD: SOCAR (State Oil Company of Azerbaijan Republic) has requested legislative guarantees from Islamabad to protect its investment in Pakistan, according to sources in the Petroleum Division. This request was highlighted during a recent meeting chaired by Minister for Planning, Development, and Special Initiatives Ahsan Iqbal, aimed at refining investment proposals for the upcoming visit of the Azerbaijani President.
Prime Minister Shehbaz Sharif has tasked the Minister of Planning, Development & Special Initiatives with holding consultative meetings with relevant ministries, including Commerce, Industries, IT, Education, National Food Security, and the Board of Investment (BoI), to prepare an investment portfolio worth $2-3 billion to present to Azerbaijan.
The Joint Chief Economist (EP) informed the meeting that an initial discussion with representatives from concerned ministries was held on June 28, 2024, where potential projects for Azerbaijani investment were identified. A draft brief/report has been prepared based on the gathered information.
The Secretary of Petroleum outlined several potential investment areas, including underground gas storage, the white oil pipeline, LPG infrastructure, equity stakes in Pakistan Refinery Limited (PRL), copper and gold mining, and the establishment of a joint venture between PSO and SOCAR. SOCAR is already supplying LNG to Pakistan under an existing agreement with the Government of Pakistan.
Planning Minister Ahsan Iqbal instructed the Petroleum Division and other stakeholders to study Azerbaijan’s investment patterns abroad and prepare detailed project proposals aligned with Azerbaijani priorities, using a template similar to that of Saudi Arabia.
The Director General (CARS & ECO) from the Ministry of Foreign Affairs highlighted SOCAR’s reluctance to invest without legislative safeguards. The Ministry of IT & Telecommunication indicated that a Memorandum of Understanding on cooperation in Information and Communication Technologies is ready for signing with Azerbaijan.
The Additional Secretary of the Power Division proposed inviting Azerbaijan to join the CASA-1000 project under the open access regime. The CEO of the Engineering Development Board (EDB) discussed potential exportable products to Azerbaijan. The Joint Chief Economist (EP) noted that the Ministry of National Food Security & Research (MNFS&R) has proposed projects related to livestock feed fattening, corporate farming, and rice and wheat exports to Azerbaijan.
The Ministry of Commerce representative mentioned that transit and preferential trade agreements with Azerbaijan are under negotiation. The Planning Minister urged the Ministry of Commerce to analyze Azerbaijan’s import structure and develop strategies to enhance exports of pharmaceuticals and smart mobile phones.
The chair also directed the Ministry of Commerce and MNFS&R to investigate the underutilization of Azerbaijan’s duty-free export facility for rice and take measures to capture the market. The Ministry of Law & Justice will be consulted regarding SOCAR’s demand for legislative guarantees.
In alignment with the Prime Minister’s vision, the chair emphasized the importance of strategic partnerships to attract investment, expand exports, and strengthen business-to-business cooperation. The Ministry of Foreign Affairs was asked to hold a wrap-up meeting at the end of the Azerbaijani delegation’s visit and compile a comprehensive report on the outcomes of the discussions.
Deputy Foreign Minister of Azerbaijan recently visited Islamabad to finalize agreements and discuss proposals for cooperation in various fields ahead of the President’s visit.
Story by Mushtaq Ghumman
