Pakistan and Saudi Arabia on Tuesday launched the Economic Cooperation Framework, which is based on their shared economic interests and reaffirms their desire to strengthen trade and investment relations, according to a statement from the Foreign Office (FO).
The decision to launch the framework was taken during a Monday meeting[1] 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 the statement.
The FII9 convened[2] global leaders, investors, policymakers, and innovators to explore the theme, ‘The Key to Prosperity: Unlocking New Frontiers of Growth’ and discuss key topics such as innovation, sustainability, economic inclusion, and geopolitical shifts.
“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 statement read.
It added that the deal would prioritise sectors including energy, industry, mining, information technology, tourism, agriculture and food security. Additionally, Islamabad and Riyadh are studying several joint economic projects, including signing memoranda of understanding (MoU) for an electricity interconnection project between the two countries and cooperation in the energy field.
“This 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 in a manner that fulfils the aspirations of their leaderships and the brotherly peoples of both nations and serves their mutual interests,” the statement read.
Pakistan and Saudi Arabia have long shared a multifaceted relationship rooted in strategic military cooperation, mutual economic interests, and shared Islamic heritage. These ties have encompassed economic assistance[3] and energy supplies[4], with Riyadh being a significant source of financial aid and oil[5] for Islamabad.
Last month, the two nations signed[6] a “Strategic Mutual Defence Agreement” in Riyadh, pledging that any attack on either nation would be treated as an act of aggression against both.
A statement from the PM’s office announced the signing of the pact during a meeting at Riyadh’s Yamama Palace, which stated that “any aggression against either country shall be considered an act of aggression against both”.
“This agreement, which reflects the shared commitment of both nations to enhance their security and to achieve security and peace in the region and the world, aims to develop aspects of defence cooperation between the two countries and strengthen joint deterrence against any aggression,” the statement read.
In 2024, Islamabad and Riyadh signed[7] 34 MoUs worth $2.8 billion, following an earlier deal[8] of 27 MoUs valued at $2.2bn.
References
- ^ Monday meeting (www.dawn.com)
- ^ convened (www.dawn.com)
- ^ economic assistance (www.dawn.com)
- ^ energy supplies (www.dawn.com)
- ^ financial aid and oil (www.dawn.com)
- ^ signed (www.dawn.com)
- ^ signed (www.dawn.com)
- ^ earlier deal (www.dawn.com)