Pakistan has hoped that a peace agreement reached on Saturday between Azerbaijan and Armenia would provide it with an opportunity to further its trade and business interests .

Prime Minister Shehbaz Sharif welcomed the agreement and expressed hope that the latest development would open new avenues for trade and regional connectivity.

Pakistan is currently engaged in economic recovery efforts under a $7 billion IMF programme and aims to capitalise on its geostrategic position to promote transit trade and attract foreign investment.

US President Donald Trump announced on Saturday that Azerbaijan and Armenia had agreed to a lasting peace after decades of conflict over the Karabakh area.

The announcement was made at a signing ceremony between the two countries’ leaders at the White House.

Following the announcement, Prime Minister Shehbaz Sharif said in a message on X, “We congratulate President Ilham Aliyev and the people of Azerbaijan on this historic agreement, which is a manifestation of wisdom and vision for a peaceful future for the region.”

The prime minister also appreciated US President Donald Trump’s role in bringing the two sides closer and making the deal possible.

There have been long-standing tensions between Christian-majority Armenia and Muslim-majority Azerbaijan over border disputes and ethnic settlements.

The two countries have fought twice over the disputed Karabakh region, which Azerbaijan recaptured following a military operation in 2023.

Prime Minister Shehbaz Sharif said that Pakistan stands with its brotherly country Azerbaijan at this historic moment.

“This development marks the beginning of a new era of peace, stability and cooperation in the South Caucasus, a region that has been plagued by conflict and humanitarian tragedies for decades,” he said.

Pakistan and Azerbaijan enjoy close ties. In July, Shehbaz Sharif met Azerbaijan President Aliyev on the sidelines of the 17th Economic Cooperation Organisation (ECO) summit, where the two leaders agreed to increase bilateral trade and investment.

It was Shehbaz Sharif’s third visit to Azerbaijan. He had previously visited Baku in May to promote economic diplomacy with the Central Asian country and offered it access to Pakistan’s ports of Karachi and Gwadar.

In July 2024, Azerbaijan announced a $2 billion investment in Pakistan during President Ilham Aliyev’s visit to Islamabad, while in September, Pakistan signed a deal to sell JF-17 Block III fighter jets to Azerbaijan, further strengthening bilateral defence ties.