ISLAMABAD: Pakistan and Saudi Arabia are close to ink a strategic economic treaty to further strengthen ties, months after both countries signed a Strategic Mutual Defence Agreement (SMDA) in Saudi capital Riyadh.
This was disclosed by a senior Saudi diplomat here at an Iftar-dinner, arranged by Saudi Ambassador Nawaf bin Said Al-Malki, while talking to a group of media. The landmark defence pact between the two countries, signed in September last year, under which Islamabad and Riyadh pledged that aggression against one would be treated as an attack on both. The move was widely viewed as formalisation of longstanding military cooperation into a binding commitment, while both countries agreed a month later to launch an economic cooperation framework to strengthen trade and investment ties. Much discussed strategic economic treaty once choreographed, it is understood that it would pave the way for eagerly awaited visit of Crown Prince Prime Minister Muhammad bin Salman to Pakistan.
The Saudi diplomat said with fair amount of satisfaction that just three months ago, the two brotherly countries signed the Strategic Mutual Defence Agreement. “Now we will be preparing for another one and it is strategic plan for the economy of Pakistan and Saudi Arabia as the economic plan would be signed soon.”
Pakistan and Saudi Arabia agreed to launch the economic cooperation framework to strengthen trade and investment ties during Prime Minister Shehbaz Sharif’s visit to Riyadh in October last year. The joint statement issued after Shehbaz meeting with Crown Prince PM Muhammad bin Salman recalled that the framework would include several strategic, high-impact projects, prioritising energy, industry, mining, information technology, tourism, agriculture and food security.
The 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. The two countries have already signed a memorandum of understanding (MoU) for an electricity interconnection project. Saudi Arabia and Pakistan have enjoyed close relations for decades but have moved to broaden their cooperation in recent years. In 2024, the two countries had also signed 34 memorandums of understanding (MoUs) worth $2.8 billion across multiple sectors.
The Iftar-dinner on Monday was attended by Chairman Senate Yusuf Raza Gilani, Governors Punjab, Sindh and KPK, former foreign minister Khurram Dastgir Khan and several distinguished guests belonging to various shades of life.
