ISLAMABAD: Prime Minister Shehbaz Sharif and Azerbaijan`s President Ilham Aliyev on Monday finalised matters related to $2 billion investment by Baku in Pakistan, with the two sides agreeing to expand bilateral trade volume and promote joint defence production.

President Aliyev assured PM Shehbaz during his twoday official visit to the Central Asian state that he would visit Islamabad this April to formalise the $2bn agreements for investment in Pakistan.

The two leaders also witnessed the signing of an amendment agreement for theSale and Purchase of LNG cargoes related to Master LNG Sale and Purchase Agreement.

Besides, an agreement was signed by the representatives of State Oil Company of Azerbaijan Republic (SOCAR) with Pakistan`s Frontier Works Organisation (FWO) and Pakistan State Oil Company Ltd for collaboration in Machike-ThallianTarujabba White Oil Pipeline Project.

On the occasion, Prime Minister Shehbaz underscored the need to enhance the bilateral trade, as the current trade of $40 million hardly reflected the strong relationship between the two brotherly countries.

Addressing Pakistan-Azerbaijan Business Forum in Baku along with President Aliyev, PM Shehbaz said they achieved another milestone during their bilateral meetings and discussed all subjects under the sun, agreeing on `a very clear-cut way forward`.

They agreed to enhance their bilateral trade to meet $2bn trade and investment target between the two countries. The premier appreciated the Azerbaijan president for generously removing the import duty on Basmati rice from Pakistan.

The prime minister, in a live telecast of the event on national TV channel, said during their meetings, both sides also focused on different areas to address tariff issues to boost bilateral trade. He mentioned LNG as another trading commodity, which could be added in the trading pool, besides the defence equipment and cooperation.

`If we put our acts together, we can achieve $2 billion trade volume,` he reiterated.

Appreciating the work achieved by both teams, PM Shehbaz expressed the confidence that smaller gaps would be addressed within a month. He expressed optimism that President Aliyev`s visit would be mutually beneficial, fostering enhanced cooperation between the two nations. The synergy, he noted, would strengthen fraternal ties and unlock unprecedented trade and investment opportunities. To achieve this, he emphasised the importance of close collaboration between business communities from both countries, exploring new avenues in the agriculture, industry, and IT sectors that offered immense potential of growth.

Permanent bureau The PM announced the establishment of a permanent bureau in Pakistan, comprising representatives from both sides. This bureau will utilise artificial intelligence and real-time information to develop an effective mechanism that could significantly benefit both countries.

He said both sides also discussed steps to strengthen their defence cooperation.

As Azerbaijan Chamber of Commerce had established its offices in Islamabad, Pakistan would also establish such offices in Baku to help explore potential trade and investment opportunities.

He also thanked President Aliyev for his great love and fondness for the people of Pakistan and expressed his gratitude for sending teams of experts to Islamabad, who had been doing a wonderful job in improving the landscaping there and adding beauty to Pakistan`s capital.

President Aliyev, in his remarks, said that such an initiative was though a smaller one, but an important part oftheirbrotherhood.

Four MoUs According to the Pakistan State Oil, four Memorandums of Understanding (MoUs) were inked between Pakistan and Azerbaijan on oil during PM Shehbaz`s current visit to Azerbaijan.

PSO and SOCAR signed an MoU in Baku for the establishment of a Joint Trading Company (JTC) in Singapore that will secure Pakistan`s energy supply chain while taking advantage of market opportunities.

Another MoU was inked for FWO Pipeline from Thallian to Taro Jabba between PSO, FWO and other partners wherein SOCAR was invited as a potential equity partner. The aim is to connect the north of the country with pipeline infrastructure. Currently, less than a third of all oil movement is through pipelines in Pakistan.

A tripartite MoU between PSO, PRL and SOCAR: PSO/PRL and SOCAR was signed to set out the basic principles for cooperation in project management consultancy support and technical services in refinery modernisation; as well as for new initiatives covering experience and knowledge related to feasibility studies, technical advisory matters, risk assessment and mitigation, as well as procurement and contracting support.

The fourth MoU/letter of acknowledgement was inked between PSO & SOCAR under G-to-G arrangement.