ISLAMABAD: Saudi Arabia is preparing to sign a strategic economic pact with Pakistan aimed at institutionalizing long-term trade and investment cooperation, the Kingdom’s ambassador to Islamabad said, signaling a further deepening of bilateral ties.
The proposed economic pact follows the signing of a Strategic Mutual Defense Agreement (SMDA) between the two countries in September last year, under which both sides pledged that aggression against one would be treated as an attack on both — a move widely seen as formalizing decades of close military cooperation into a binding security framework.
Saudi Ambassador Nawaf bin Said Al-Malki made the remarks on the sidelines of the launch of the King Salman Humanitarian Aid and Relief Center (KSrelief) Ramadan food assistance program in Pakistan, according to Arab News.
“Three months ago, we signed the Strategic Mutual Defense agreement. Today, God willing, we will be preparing for another strategic plan for the economy of Pakistan and Saudi Arabia,” Al-Malki said, adding that the new economic framework would be signed “soon.”
Expanding economic cooperation
The planned pact builds on understandings reached during Prime Minister Shehbaz Sharif’s visit to Riyadh in October, where both sides agreed to launch an economic cooperation framework to strengthen trade and investment ties.
A joint statement issued after Sharif’s meeting with Saudi Crown Prince Mohammed bin Salman said the framework would focus on high-impact projects in energy, industry, mining, information technology, tourism, agriculture, and food security.
The two countries have already signed a memorandum of understanding for an electricity interconnection project, signaling early movement under the broader economic agenda.
In 2024, Saudi Arabia and Pakistan signed 34 memorandums of understanding (MoUs) valued at approximately $2.8 billion across multiple sectors, reflecting growing economic engagement beyond traditional defense cooperation.
Analysts view the anticipated pact as part of Saudi Arabia’s broader strategy to expand regional partnerships while supporting Pakistan’s economic stabilization and development efforts.
Humanitarian support during Ramadan
KSrelief’s Ramadan food assistance program aims to distribute 27,000 food baskets to approximately 192,500 vulnerable individuals across 30 districts in Pakistan.
Each package contains 80 kilograms of wheat flour, five liters of cooking oil, five kilograms of sugar, two kilograms of dates, and five kilograms of gram pulse — supplies calculated to support an average household for the duration of Ramadan.
In a statement, KSrelief said the initiative reflects its broader humanitarian mandate to alleviate suffering, enhance resilience, and address food security challenges in Pakistan.
“KSrelief reaffirms its continued commitment to addressing food security challenges in Pakistan,” the organization said.
Deepening strategic ties
Saudi Arabia and Pakistan have maintained close diplomatic, economic, and security relations for decades. However, recent agreements – including the defense pact and the upcoming economic framework – signal a shift toward more institutionalized and strategic cooperation.
The proposed economic pact is expected to formalize long-term collaboration in key sectors, reinforcing what both governments describe as a shared vision for sustainable partnership and mutual growth.
