Pakistan, Saudi Arabia ‘unfurl landmark ECF’ to deepen trade, investment, and strategic ties

• Framework signals new era of economic partnership between Islamabad and Riyadh
• Initiative focuses on key sectors—energy, IT, mining, tourism, agriculture, and food security
• High-impact joint projects under study, including electricity interconnection and energy cooperation
• Information Minister Tarar hails move as ‘historic milestone’ in Pak-Saudi relations
• PM Shehbaz underscores reforms, digitization, and climate resilience at FII9 in Riyadh
• FM Ishaq Dar, Saudi counterpart discuss Gaza crisis, regional stability, and multilateral cooperation
• New framework builds on $2.8b MoUs and defence pact, strengthening long-term strategic bond

ISLAMABAD/RIYADH: Pakistan and Saudi Arabia on Tuesday formally launched the Economic Cooperation Framework (ECF), marking a new phase in their longstanding partnership that seeks to transform bilateral relations through robust trade, investment, and strategic collaboration.

The announcement came following a high-level meeting between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman on the sidelines of the Ninth Edition of the Future Investment Initiative (FII9) in Riyadh, according to a statement from the Foreign Office (FO).

The framework—built around shared economic interests—reaffirms both countries’ determination to elevate their economic partnership, diversify cooperation, and enhance private sector participation in key growth sectors. It aims to expand collaboration in energy, mining, information technology, tourism, agriculture, food security, and industry, while identifying new areas for joint ventures and public-private partnerships.

“As part of the framework, several strategic and high-impact projects will be discussed in the economic, trade, investment, and development fields that will contribute to strengthening cooperation between the two governments, enhancing the pivotal role of the private sector, and increasing trade exchange between the two countries,” the FO statement said.

It further noted that Islamabad and Riyadh are exploring multiple joint projects, including the signing of Memoranda of Understanding (MoUs) for an electricity interconnection project and enhanced cooperation in the energy sector—a key pillar of their partnership.

The FO added that the agreement “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 in a manner that fulfils the aspirations of their leaderships and peoples and serves their mutual interests.”

Information Minister Attaullah Tarar hailed the development as “another historic chapter” in Pak–Saudi relations, describing the framework as a “high point in the enduring partnership” that would further consolidate trade, energy and investment ties between the two nations.

PM Shehbaz at FII9: reforms, resilience, and global cooperation

Participating in a discussion at FII9, themed “The Key to Prosperity: Unlocking New Frontiers of Growth,” Prime Minister Shehbaz Sharif highlighted Pakistan’s economic reforms, technological transition, and resilience in the face of climate and financial challenges.

The premier acknowledged that Pakistan had made “very honest mistakes” in the past but said the country had “learned valuable lessons” and was now committed to deep-rooted reforms. “The important thing is to learn from your mistakes—and that is what we are doing,” he said.

PM Shehbaz pointed to the digitization of the Federal Board of Revenue (FBR) as a key step in ensuring transparency and tackling corruption, adding that Pakistan was on a course of structural transformation.

Addressing global climate challenges, the prime minister reminded the forum that Pakistan contributed “less than a fraction of one percent” to global carbon emissions but remained one of the most vulnerable nations to climate change.

He said that the country continued to face a “vicious cycle” of rebuilding after repeated climate disasters such as the 2022 floods. “This is not acceptable. Humanity must move forward in unison—sharing its bounties and grievances together,” he said, calling for mutual cooperation instead of dependence on loans.

The prime minister emphasized that Pakistan was “moving rapidly towards technology and artificial intelligence adoption,” while also warning of the need for global consensus on responsible AI use. He urged the global north and south to work together for an equitable distribution of resources, ensuring an inclusive and egalitarian global economy.

Dar, Saudi FM reaffirm strategic alignment

Meanwhile, Deputy Prime Minister and Foreign Minister Ishaq Dar met with his Saudi counterpart Faisal bin Farhan Al Saud in Riyadh to discuss bilateral relations, regional stability, and international developments.

According to the FO, both sides reviewed progress on existing projects and agreed to further strengthen cooperation across all domains. They also discussed the humanitarian crisis in Gaza, reaffirming their shared commitment to coordination at multilateral fora, including the United Nations.

“They agreed to further deepen the Pak-Saudi multifaceted partnership across all domains and to continue strengthening the bonds of brotherhood and friendship between the two countries,” the FO said in a post on X.

Strategic partnership deepens

Pakistan and Saudi Arabia enjoy a multifaceted relationship grounded in religious affinity, economic cooperation, and shared strategic objectives. Riyadh remains one of Islamabad’s key partners in trade, energy, and development, as well as a leading source of remittances and investment.

Last month, both nations signed a Strategic Mutual Defence Agreement in Riyadh, pledging that any attack on either nation would be treated as an act of aggression against both. The agreement aims to reinforce joint deterrence and deepen military cooperation to safeguard regional peace and stability.

Earlier in 2024, Pakistan and Saudi Arabia signed 34 MoUs worth $2.8 billion, following a previous tranche of 27 MoUs valued at $2.2 billion, covering diverse sectors including infrastructure, energy, technology, and agriculture.

The launch of the Economic Cooperation Framework now positions the two countries to transition from traditional assistance-based ties to a sustainable, investment-driven partnership, aligning their economic visions under Vision 2030 and Pakistan’s reform agenda.