Pakistan and Saudi Arabia have launched a Comprehensive Economic Cooperation Framework, marking a significant shift in their long-standing relationship from traditional aid to a sustainable economic partnership. The new framework aims to deepen strategic and economic ties between the two nations, building on decades of close relations.
The announcement followed a high-level meeting in Riyadh between Saudi Crown Prince Mohammed bin Salman and Pakistani Prime Minister Shehbaz Sharif. The leaders met on the sidelines of the ninth Future Investment Initiative (FII9), a global summit focused on innovation and growth.
A New Era of Strategic Partnership
According to official statements, the framework is designed to usher in a new period of strategic economic partnership, founded on shared Islamic heritage and a common vision for regional prosperity. Both governments have agreed to strengthen cooperation in trade, investment, and development, with a key focus on empowering the private sector to drive growth.
The plan identifies several key areas for joint ventures and increased trade, including energy, industry, mining, information technology, tourism, agriculture, and food security. During the FII9 summit, Prime Minister Sharif reaffirmed Pakistan’s commitment to facilitating Saudi investment and creating a predictable business environment, a move that aligns with the Kingdom’s broader economic diversification as international firms like Barclays secure a Saudi licence to establish a presence.
Key Projects and Future Cooperation
Several high-impact projects are already under review as part of the initiative. Proposed Memoranda of Understanding (MoUs) for an electricity interconnection project and broader energy-sector collaboration are seen as important steps toward greater regional energy integration.
To ensure the framework’s goals are met, the upcoming session of the Saudi-Pakistani Supreme Coordination Council will institutionalise cooperation and oversee the implementation of joint projects. Both leaders expressed their commitment to a sustainable economic partnership that reflects the aspirations of their nations. The Foreign Office described the initiative as an extension of ongoing efforts to build a durable partnership across economic, trade, and investment fields.
Deepening Defence and Investment Ties
The economic collaboration complements a growing partnership in security and defence. Last month, Islamabad and Riyadh signed a Strategic Mutual Defence Agreement, which states that any aggression against one country would be treated as an attack on both, aiming to enhance joint deterrence.
The economic relationship has already seen substantial growth. Over the past year, the two countries have signed 61 MoUs. This includes 34 agreements in 2024 valued at $2.8 billion, following 27 MoUs worth $2.2 billion signed previously, cementing Saudi Arabia’s position as one of Pakistan’s largest economic partners.
With the launch of this comprehensive framework, Islamabad and Riyadh are set to translate their historic friendship into a forward-looking economic alliance, blending strategic goals with shared development objectives.
