The Pakistan Stock Exchange (PSX) and the Baku Stock Exchange (BSE) signed a memorandum of understanding (MoU) on Tuesday to collaborate on market operations, product development, and regulatory best practices, the PSX announced.
This development follows a day after Prime Minister Shehbaz Sharif’s two-day visit to Azerbaijan, where he held bilateral and delegation-level talks with President Ilham Aliyev. The visit was part of Pakistan's broader strategy to strengthen economic ties and increase trade and investment with Central Asia, a region with no direct sea access.
The MoU was signed virtually by PSX Managing Director and CEO Farrukh H. Sabzwari and Ruslan A. Khalilov, Chairman of the Baku Stock Exchange’s Management Board.
According to the PSX, the agreement will foster an exchange of knowledge in market operations, product development, and regulatory best practices. The aim is to establish effective communication channels and strengthen the ties between the capital markets of both nations, promoting mutual growth and development in the financial services sector.
The collaboration will also explore cross-border investments and initiatives to enhance market efficiency and liquidity. Key areas of focus include facilitating dual listings and investment fund trading, jointly developing products, sharing market insights, supporting staff secondments, and engaging in capacity-building efforts.
Sabzwari called the MoU a significant milestone in fostering stronger ties between the two countries' capital markets. "We believe that by sharing knowledge and expertise, both exchanges can create more dynamic and competitive markets, benefiting investors and businesses in both nations," he said.
Khalilov expressed excitement over the partnership, saying that the MoU would open doors for innovative opportunities, cross-border investments, and knowledge sharing, strengthening the financial future of both Azerbaijan and Pakistan.
In recent months, Pakistan has been actively pursuing business deals with Azerbaijan. During Prime Minister Sharif's visit to Baku, the two countries signed several agreements in trade, energy, tourism, and education sectors. In July 2024, the leaders of both nations discussed investment and trade projects worth $2 billion, while in September 2024, Pakistan agreed to supply JF-17 Block III fighter jets to Azerbaijan, marking a significant step in defense cooperation.