Baku: The Azerbaijani government has announced a significant financial commitment to the reconstruction of the Karabakh region, pledging to allocate AZN 29 billion by 2027. This ambitious plan aims to revitalize the region’s infrastructure and stimulate economic growth.
According to Azeri-Press News Agency, the country report from Fitch Solutions, a subsidiary of Fitch Group, outlines that the government intends to spend AZN 28.9 billion (USD 17 billion) on Karabakh’s restoration between 2022 and 2026. A significant portion of this funding will be directed towards infrastructure projects, with a focus on renewable energy. This effort is expected to enhance electricity exports to neighboring countries, Turkiye and Georgia.
Fitch Solutions further indicates that the ongoing reconstruction in Karabakh will sustain high levels of investment in 2025. Investment is projected to significantly contribute to the country’s economic growth, adding 1.5 percentage points in 2025, following a 1.7 percentage point contrib
ution in 2024. The Azerbaijani government’s strategy emphasizes boosting non-oil exports, particularly green electricity, as a core component of its decarbonization and diversification initiatives.