How can Pakistani companies effectively use the potential of Karabakh and East Zangezur?

Adil Adilzade

Chairman of the “New Life-Economic Development” Public Union

The liberation of Karabakh and East Zangezur from occupation marked a turning point in the history of Azerbaijan. This is an important event that restored the territorial integrity of the Azerbaijani state and the national pride of its people. This process began with the 2020 Patriotic War (the 44-day war) and was completed through local anti-terrorist measures conducted in September 2023.

After the war, the Azerbaijani state began building infrastructure in the lands liberated from occupation within the framework of the “Great Return” program. Projects such as the Agilli village and city developments are being implemented. New roads, railways, and airports (Fuzuli, Zangilan, Lachin) are under construction. The phased return of internally displaced persons is already underway.
It should be noted that the Karabakh economic region includes the districts of Khankendi, Shusha, Khojaly, Khojavend, and Aghdara. The East Zangezur economic region includes Zangilan, Gubadli, Lachin, Kalbajar, and previously liberated territories. The liberation of these lands symbolizes not only the restoration of Azerbaijan’s territorial integrity but also national unity, state power, and the will of the people.
Investment opportunities in Karabakh and East Zangezur are multifaceted and promising. These regions hold strategic importance due to their natural resources and the special attention of the state. From an economic point of view, there are several valid reasons to invest in the Karabakh and East Zangezur economic regions. Located at the crossroads of major transportation routes, they offer potential for direct connection with Nakhchivan and Turkey through the Zangezur corridor, which is crucial for regional and international trade. The region’s fertile lands and abundant water resources provide favorable conditions for agricultural development. Rich natural resources, including forests, water, minerals, and construction materials, further enhance the investment appeal.
The establishment of industrial parks and agroparks in Karabakh and East Zangezur is either planned or already underway. The region’s historical, cultural, and natural attractions also create significant potential for investment in the tourism sector.
The Azerbaijani government offers various incentives for the restoration and development of these regions, including tax exemptions, subsidies, and infrastructure support. Coordinated and rapid project implementation is facilitated by special presidential representatives. As reconstruction and resettlement progress, the demand for new service sectors (education, healthcare, logistics, etc.) is increasing. Modern construction of roads, railways, electricity, water, and other infrastructure provides additional advantages for investors.
Investment opportunities for Pakistani companies in Karabakh and East Zangezur are particularly significant given the friendly relations between the two countries. Pakistan is one of Azerbaijan’s closest partners, and its participation in the restoration of Karabakh can be mutually beneficial both economically and strategically.
On February 24, the Azerbaijan-Pakistan business forum was held in Baku.
Ilham Aliyev, President of the Republic of Azerbaijan, and Muhammad Shehbaz Sharif, Prime Minister of the Islamic Republic of Pakistan, addressed the forum. President Ilham Aliyev said in his speech: “I’m very glad that, within the framework of the state visit of Mr. Prime Minister, a business forum of prominent representatives of the business circles of both countries is being organized in Baku. I think it fully reflects our bilateral agenda and what we discussed with Mr. Prime Minister during our meetings today. We are very satisfied with the way bilateral political relations develop. They are actually excellent. But at the same time, we regret that trade turnover does not match the political standards and the level of political interaction. I think that the messages, which have already been given by the two leaders, and also discussions at the forum, will create a much better framework for active business contacts, mutual investments, and, of course, an increase in mutual trade. We are interested in that, and we consider that the brotherly relations between our countries should be a good platform for business circles to build their ties. One of the issues which sometimes prevents more active business-to-business contacts is the lack of information about our plans, our economic agenda, and our infrastructure projects. So, in order to fill this gap, I think these kinds of gatherings are very important. Because, during the business forum, of course, there is an exchange of information, presentations, business opportunities, legal formats of taxes, customs duties, etc.; all of which are important for businessmen to know prior to entering the market”.
Within the framework of the forum, a number of new agreements were signed between the parties and new cooperation opportunities were created between business representatives. Pakistani businessmen expressed their interest in investing in the liberated Karabakh and East Zangezur regions of Azerbaijan.
The Azerbaijani-Pakistani friendship is a strong and sincere relationship rooted in deep historical, religious, cultural, and political ties. Relations between the two countries exist not only at the diplomatic level but also through mutual respect and genuine connections between the people. Pakistan was one of the first countries to fully support Azerbaijan’s territorial integrity in the Karabakh issue. It remains the only country that has not established diplomatic relations with Armenia for this reason. Azerbaijan, in turn, supports Pakistan’s position on the Kashmir issue based on international law. The Azerbaijan-Pakistan friendship is a rare and exemplary partnership that contributes to regional stability.