Saudi Arabia, Pakistan Forge New Economic Partnership in Energy, IT, and Trade
▼ Summary
– Saudi Arabia and Pakistan have established an Economic Cooperation Framework to enhance trade and investment based on their mutual economic interests and historical ties.
– The framework will explore strategic projects in sectors including energy, mining, information technology, agriculture, and tourism to strengthen cooperation.
– Both countries aim to increase the role of the private sector and are evaluating joint initiatives, such as memoranda for electricity interconnection and energy sector cooperation.
– Pakistan’s Commerce Minister has set a goal to boost trade with Saudi Arabia from $5.7 billion to $20 billion by improving business conditions.
– Saudi Arabia is a key economic partner for Pakistan, with over 2.7 million Pakistani expatriates in the Kingdom making it the primary source of remittances for Pakistan.
Saudi Arabia and Pakistan have launched a major new Economic Cooperation Framework designed to significantly expand their partnership across critical sectors like energy, information technology, and trade. This initiative builds upon their long-standing historical ties and aims to unlock substantial mutual economic benefits.
The agreement was formalized in Riyadh during a high-level meeting between His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of Saudi Arabia, and Pakistan’s Prime Minister Muhammad Shehbaz Sharif. The framework is rooted in nearly eight decades of diplomatic and brotherly relations. Both leaders expressed a firm commitment to elevating trade and investment to a new level, aligning their economic strategies for shared prosperity.
A central objective of this partnership involves exploring a wide array of strategic, high-impact projects. These initiatives are expected to span the economic, trade, investment, and development sectors. A key goal is to amplify the role of the private sector and substantially increase the volume of trade flowing between the two nations. Priority areas for collaboration have been identified as energy, industry, mining, information technology, tourism, agriculture, and food security.
Currently, officials from both sides are conducting detailed evaluations of several joint economic ventures. These assessments include a potential memorandum of understanding for an ambitious electricity interconnection project linking the Kingdom and Pakistan. Another memorandum of understanding under consideration focuses specifically on deepening cooperation within the broader energy sector. This comprehensive framework represents a natural progression in the ongoing efforts to solidify the fraternal bond between the two countries. It also reflects a unified vision to build a durable and sustainable partnership that fulfills the aspirations of their leadership and citizens alike. Plans are also advancing to convene a meeting of the Saudi-Pakistani Supreme Coordination Council to oversee this enhanced collaboration.
On the trade front, Pakistan has set an ambitious target. Gohar Ejaz, Pakistan’s Minister of Commerce, recently stated the country’s goal is to boost bilateral trade with Saudi Arabia from its current level of $5.7 billion to an impressive $20 billion. This growth is expected to be driven by deliberate improvements to the overall business environment.
The existing trade relationship is already showing strong momentum. In 2024, Hassan Al-Huwaizi, the Chairman of the Federation of Saudi Chambers, highlighted the remarkable growth in trade, which had indeed reached the $5.7 billion mark. He noted that this volume has elevated Pakistan to become Saudi Arabia’s 20th largest trading partner, indicating a wealth of untapped potential for further collaboration. This positions Pakistani investors to play a more significant role in Saudi Arabia’s transformative Vision 2030 projects.
The human connection between the two nations further strengthens this economic partnership. With a community of over 2.7 million Pakistani expatriates residing and working in the Kingdom, Saudi Arabia continues to be the most important source of remittances for Pakistan, providing crucial financial stability to the South Asian nation.
(Source: Economy Middle East)
