• Pakistan and Saudi Arabia launched an Economic Cooperation Framework to expand trade, investment, and development ties.
• The move strengthens their long-standing strategic partnership, following recent defence and economic agreements.
Pakistan and Saudi Arabia on Tuesday launched the Economic Cooperation Framework, built on shared economic interests and a mutual commitment to deepen trade and investment ties.
The decision followed a meeting between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman on Monday, held on the sidelines of the Ninth Future Investment Initiative (FII9) in Riyadh, the Foreign Office (FO) said.
FII9 brought together global leaders, investors, and policymakers under the theme, “The Key to Prosperity: Unlocking New Frontiers of Growth,” focusing on innovation, sustainability, economic inclusion, and geopolitical trends.
According to the FO, the framework will explore several strategic and high-impact projects in trade, investment, and development. These efforts aim to boost cooperation between both governments, expand the role of the private sector, and increase bilateral trade.
The statement said the framework prioritises energy, industry, mining, information technology, tourism, agriculture, and food security. It added that both sides are studying joint economic ventures, including memoranda of understanding (MoUs) for an electricity interconnection project and broader energy cooperation.
“This framework represents an extension of both countries’ efforts to strengthen their fraternal relations and reaffirms their shared vision toward building a sustainable partnership across various economic, trade and investment fields in a manner that fulfils the aspirations of their leaderships and the brotherly peoples of both nations and serves their mutual interests,” the statement read.
Information Minister Attaullah Tarar hailed the agreement, saying, “Another historic chapter unfolds in Pakistan-Saudi relations.”
Speaking at FII9, Prime Minister Shehbaz said Pakistan was rich in resources and had learned from its past. “Very honest mistakes” were made, he said, “but the important thing is to learn from your mistakes and that is what we are doing.”
He noted that his government was implementing deep-rooted reforms, including the digitisation of the Federal Board of Revenue to curb corruption.
The prime minister said Pakistan was among the nations most affected by climate change despite contributing “less than a fraction of one per cent” to global emissions. He described how repeated floods had kept the country trapped in a cycle of rebuilding and loss.
“This is not acceptable. This is not where humanity should be directed towards. It has to be mutual cooperation,” he said, stressing that loans alone could not solve such crises.
He added, “If humanity is to move forward, it must do so together, sharing its bounties and grievances.”
PM Shehbaz said his government would rebuild Pakistan through relentless effort and better use of available resources. He noted the country’s growing use of technology and artificial intelligence but warned of the risks they pose.
He urged dialogue between the global north and south to ensure an equitable distribution of resources and create a fairer global economy.
Meanwhile, Deputy Prime Minister and Foreign Minister Ishaq Dar met Saudi Foreign Minister Faisal bin Farhan Al Saud in Riyadh to discuss bilateral relations and regional developments, the FO said.
The two also discussed the genocide in Gaza and “reaffirmed their shared commitment to cooperation at multilateral fora, including the United Nations,” according to a post on X by the FO.
“They agreed to further deepen the Pak-Saudi multifaceted partnership across all domains, and to continue strengthening the bonds of brotherhood and friendship between the two countries,” it added.
Pakistan and Saudi Arabia share a relationship, now rooted in military cooperation, and economic partnership. Riyadh has previously provided financial support and energy supplies to Islamabad.
Last month, the two countries signed a “Strategic Mutual Defence Agreement” in Riyadh, pledging that any attack on one would be considered an attack on both.
A statement from the Prime Minister’s Office said the accord reflects a “shared commitment to enhance security and achieve peace in the region and the world.” It aims to strengthen defence cooperation and build joint deterrence against aggression.
In 2024, Islamabad and Riyadh signed 34 MoUs worth $2.8 billion, following an earlier round of 27 MoUs valued at $2.2 billion.
