Pakistan Sees Trade Boost from Azerbaijan-Armenia Peace Deal

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Pakistan’s Prime Minister Shehbaz Sharif welcomes the Azerbaijan-Armenia peace agreement, anticipating enhanced trade and regional connectivity opportunities.

On August 9, 2025, Pakistan’s Prime Minister Muhammad Shehbaz Sharif expressed strong support for the historic peace agreement signed between the Republic of Azerbaijan and the Republic of Armenia at the White House Summit, facilitated by United States President Donald J. Trump. According to Pakistan Today, Sharif described the deal as a landmark development that ushers in a new era of peace, stability, and cooperation in the South Caucasus, a region long plagued by conflict. He congratulated Azerbaijan’s President Ilham Aliyev, emphasizing Pakistan’s longstanding solidarity with Azerbaijan and its optimism for the agreement’s potential to foster regional prosperity.

The peace accord, signed on August 8, 2025, aims to end decades of hostility, particularly over the Nagorno-Karabakh region, and includes provisions for border delimitation, security cooperation, and normalized diplomatic relations. Sharif highlighted that the agreement opens new avenues for trade, connectivity, and regional integration, which Pakistan hopes to leverage for economic gains. The deal features a strategic transit corridor through the South Caucasus, dubbed the “Trump Route,” which will facilitate energy and resource exports, potentially benefiting Pakistan’s trade interests, as reported by Arab News. Sharif also praised the United States’ role in brokering the agreement, noting that it sets a precedent for resolving protracted conflicts through dialogue.

Pakistan’s Foreign Office echoed Sharif’s sentiments, stating that the agreement reflects the wisdom of Azerbaijan’s leadership and could inspire other regions facing similar challenges. The ministry expressed hope that the peace deal would drive prosperity not only for Azerbaijan and Armenia but also for neighboring countries like Pakistan, which seeks to expand its economic ties in the region. Dawn reported that the agreement includes United States development rights to the transit corridor, enhancing its strategic importance for global trade. Pakistan, with its strategic location, stands to benefit from increased regional connectivity, particularly in energy and trade sectors.

This development aligns with Pakistan’s broader economic strategy to strengthen ties with Central Asia and the Caucasus. Sharif’s remarks underscore a commitment to capitalizing on new trade routes and fostering stability, positioning Pakistan as a key player in emerging regional economic frameworks.