Pakistan’s finance ministry announced that Azerbaijan’s state energy company SOCAR will finalize an investment in Pakistan next month. The decision follows high-level discussions at the World Economic Forum in Davos.
The announcement came after a business roundtable chaired by Finance Minister Muhammad Aurangzeb. SOCAR President Rovshan Najaf said the company sees Pakistan as a long-term energy partner.
Pakistan seeks fresh foreign investment in its energy sector to stabilize supply, reduce costs, and improve transparency. The government has prioritized oil, gas, mining, and minerals for industrial growth and energy security.
SOCAR already operates in Pakistan through SOCAR Trading, supplying liquefied natural gas under a government-to-government agreement. The deal allows one LNG cargo per month without take-or-pay obligations, giving Pakistan pricing flexibility.
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The LNG agreement has been extended into 2025, reflecting continued cooperation between SOCAR and Pakistan LNG Limited. Najaf highlighted ongoing engagement with Pakistan State Oil for petroleum product supply.
He expressed interest in expanding cooperation across the oil and gas value chain as reforms advance. Aurangzeb welcomed the investment, emphasizing reforms for pricing transparency, contractual clarity, and risk-sharing.
SOCAR operates in over 20 countries, employs 66,000 people, and reported $50.6 billion in revenue in 2024. Officials said the investment will strengthen Pakistan-Azerbaijan energy ties and deepen bilateral economic cooperation.
