Pakistan, Saudi Arabia launch economic cooperation framework

Dubai: Pakistan and Saudi Arabia on Tuesday launched a Comprehensive Economic Cooperation Framework, marking a new phase in their long-standing bilateral relationship and signalling a deepening of strategic and economic ties between the two brotherly nations.

The announcement came following a high-level meeting between Saudi Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud and Prime Minister Shehbaz Sharif in Riyadh on Monday, on the sidelines of the Ninth Edition of the Future Investment Initiative (FII9) — a global summit focused on innovation, sustainability, and growth.

According to statements from the Prime Minister’s Office and the Foreign Office, the framework aims to elevate Pakistan–Saudi relations into a new era of strategic economic partnership, anchored in shared Islamic heritage, mutual trus and a common vision for regional prosperity, according to APP.

Under the framework, both governments have agreed to strengthen cooperation in trade, investment, and development, while empowering the private sector to play a more pivotal role in driving growth. The plan also envisions joint ventures and increased trade exchange across key areas including energy, industry, mining, information technology, tourism, agriculture, and food security.

Several strategic and high-impact projects are under review, including proposed Memoranda of Understanding (MoUs) for an electricity interconnection project and energy-sector collaboration, seen as steps toward greater regional energy integration.

Crown Prince Mohammed and Shehbaz Sharif reaffirmed their shared vision for a sustainable economic partnership that reflects the aspirations of their leaderships and the people of both nations. They also expressed anticipation for the upcoming session of the Saudi–Pakistani Supreme Coordination Council, which will institutionalize cooperation and ensure implementation of joint projects under the new framework.

Both sides underscored that the Economic Cooperation Framework builds on nearly eight decades of partnership, rooted in Islamic solidarity and strategic alignment.

The Foreign Office described the initiative as “an extension of both countries’ efforts to strengthen their fraternal relations and reaffirm their shared vision toward building a sustainable partnership across economic, trade, and investment fields.”

In addition to economic collaboration, the broader Pakistan–Saudi partnership continues to expand in security and defence.

Last month, Islamabad and Riyadh signed a Strategic Mutual Defence Agreement, pledging that any aggression against one country would be treated as an attack on both.

The accord aims to strengthen joint deterrence and enhance regional stability.

At the FII9 summit, which convened world leaders, investors, and innovators under the theme “The Key to Prosperity: Unlocking New Frontiers of Growth,” Shehbaz reaffirmed Pakistan’s commitment to facilitating Saudi investment and creating a predictable business environment.

The two countries have signed a total of 61 Memoranda of Understanding (MoUs) over the past year — 34 in 2024 valued at $2.8 billion, following 27 MoUs worth $2.2 billion earlier — underscoring Saudi Arabia’s growing role as one of Pakistan’s largest economic partners.

With the launch of this comprehensive framework, Islamabad and Riyadh are poised to translate decades of friendship into a forward-looking economic partnership, blending strategic cooperation with shared development goals across the Muslim world.