ISLAMABAD: Pakistani Defense Minister Khawaja Asif said on Friday Islamabad and Baku were in the process of finalizing a memorandum of agreement to enhance security ties through cooperation in arms trade, defense infrastructure and intelligence sharing.

Asif was addressing the eighth session of the Pakistan-Azerbaijan joint commission alongside Azerbaijani Defense Industry Minister Vugar Mustafayev who is visiting Islamabad. 

There have been a series of visits by Azerbaijani officials to Pakistan in recent months, as Islamabad seeks closer ties, especially in trade and investment, with former Soviet republics and Central Asian states. 

Last July, Azerbaijan President Ilham Aliyev visited Pakistan and announced that the two nations were working to increase bilateral trade to $2 billion.

“I’m hopeful that once we finalize our memorandums of understanding on cooperation in the field of the defense industry, we will be able to further our security ties through arms trade, defense infrastructure and sharing of intelligence,” Asif said. 

He invited Azerbaijan to join Pakistan’s Strategic Underground Gas Storage (SUGS), a critical component of energy infrastructure, and the White Oil Pipeline project that transports oil from ports to refineries and other distribution points.

Asif also suggested organizing regular trade exhibitions between the two countries to showcase local products in each other’s markets.

Last December, Pakistan waived customs and regulatory duties on imports from Azerbaijan under the Pakistan-Azerbaijan Preferential Trade Agreement. The agreement aimed to boost economic cooperation by reducing tariffs on goods like Pakistan’s sports equipment, leather, and pharmaceuticals and Azerbaijan’s oil and gas products.

ISLAMABAD: A Hong Kong-based multinational conglomerate has expressed interest in investing $1 billion in Pakistan’s maritime sector to improve the South Asian nation’s port infrastructure, the maritime ministry said on Thursday.

Hutchison Ports, a subsidiary of CK Hutchison Holdings, is a leading global port operator and logistics company, operating in 52 ports across 26 countries in Asia, Europe, the Americas, and Australia. It provides container terminal operations, cargo handling, logistics, port management, transportation, and distribution services.

Pakistan’s seaports in Karachi, located along the Arabian Sea, are essential for global trade and provide job opportunities for thousands of citizens. The country has been actively working on restructuring and enhancing its port infrastructure. 

On Thursday, Maritime Affairs Minister Qaiser Ahmed Shaikh held a meeting with a high-level delegation from Hutchison Ports, led by the company’s Managing Director for the Middle East and Africa, Andy Tsoi, to discuss the $1 billion investment plan, the maritime affairs ministry said.

“This groundbreaking proposal includes an upfront $200 million Foreign Direct Investment,” the ministry said, adding that the investment would focus on modernizing the Karachi International Container Terminal and South Asia Pakistan Terminals Limited “with advanced automation technologies, enhancing operational efficiency and adopting eco-friendly solutions.”

The plan includes introducing “electrified and remote-control equipment” to reduce carbon emissions and establishing a state-of-the-art warehousing depot for Pakistan’s growing trade sector as well as funding to improve roads around the south wharf to ensure “smooth container traffic flow and boost supply chain efficiency.”

The development comes amid Pakistan’s efforts to boost trade and seek international partnerships to expand maritime activities.

In August 2024, state media reported that Danish shipping firm Maersk was in discussions with local authorities to invest $2 billion in Pakistan’s port and transport infrastructure over the next two years. 

In October last year, the maritime minister signed an agreement with Denmark’s Minister Morten Bodskov to restructure Pakistan’s maritime sector and provide technical training at its ports.