New phase of Pak-Saudi economic cooperation By Dr Muhammad Khan
In the bilateral relationship between Pakistan and Saudi Arabia, the Kingdom has constantly shown willingness to assist Pakistan in various fields. Amid the current economic crisis, the Kingdom has once again extended its full support for Pakistan’s economic revival. From October 9-11, 2024, a high-powered business delegation of the Kingdom of Saudi Arabia visited Pakistan. The delegation was headed by Saudi Minister for Investment, Sheikh Khalid Bin Abdul Aziz Al Faleh. During the visit of the Saudi business delegation, both countries signed 27 organic agreements and MoUs of approximately $2 billion. Indeed, this is just a beginning of a new phase of Pak-Saudi economic cooperation. There are numerous opportunities for the economic cooperation between both brotherly countries as explained by Saudi Investment Minister. He said that, “there were no limits to the possibilities of economic cooperation between the two countries.” The delegation also visited the Special Investment and Facilitation Council (SIFC) where both sides debated and agreed on various investment plans in several sectors. Saudi Investment Minister and his delegation had meetings with President, Prime Minister and Army Chief.
In his address with Pak-Saudi Business Forum at Islamabad, the Minister emphasized that, economic stability of Pakistan is most needed at this time. He also appreciated the economic development of Pakistan in last two years declaring it as “quite impressive”. About his meeting with Army Chief, Al Faleh said that, he “spoke from the heart as well as from the mind. General AsimMunir promised the Saudi Minister that in Pakistan, “red tape would be replaced with a red carpet” through “special one-stop shop” under the SIFC. Over the years, the trade between Pakistan and Kingdom has increased by 80 per cent; from $3bn in 2019 to $5.4bn in 2024 yet another welcoming step.
This phase of the economic cooperation between both countries is continuation of the understanding reached between Prime MinisterShahbaz Sharif and Saudi Crown Prince Mohammad Bin Salman (MBS) on April 8, 2024. Thereafter, a high-level delegation from Saudi Arabia, led by Saudi Foreign Minister Prince Faisal Bin Farhan Al Saud visited Pakistan. During its two-day visit, key areas of economic cooperation were discussed with a focus on potential Saudi investment in identified sectors. As agreed between the Crown Prince of Saudi Arabia and the Prime Minister of Pakistan, the Kingdom has a plan to make long-term investment in in Pakistan over next five-years. This investment will be directed towards mutually agreed fields such as energy, IT, minerals, defence and agriculture sectors under the Special Investment Facilitation Council.
Going by chronology, the Islamic Republic of Pakistan and Kingdom of Saudi Arabia established their bilateral relationship soon after Pakistan came into being in 1947. This beginning of relations between the two Muslim countries was based on a solid foundation of Islamic ideology. Since Pakistan came into being, based on Islamic ideology and Kingdom of Saudi Arabia was protecting, maintaining and indeed taking extreme care of two holiest places of Islam; the Holy Mosque (KaabaTullah) and Masjid al-Nabawi therefore a unanimity of religious norms and values further deepened this bilateral relationship. Indeed, Muslims of the sub-continent had deep religious affiliation with their holy places, protected and secured by the Kingdom.
Pakistan and the Kingdom of Saudi Arabia signed a “Treaty of Friendship” in 1951. This treaty, in fact, laid the formal basis for the bilateral relationship between these two Muslim brothers. Apart from cooperation between the two, this Treaty of Friendship devised a mechanism for political, diplomatic, cultural, economic and religious relationship between the Kingdom and Pakistan. Based on this, bilateral relations “were buttressed over the coming decades by a tradition of strong financial and strategic assistance extended to each other by the two brotherly countries whenever required.” Upon taking over the power in 2015, King Salman Bin Abdul Aziz reiterated his relationship with Pakistan at all levels: the political, strategic, economic, cultural and people to people. Under King Salman and Crown Prince Muhammad Bin Salman (MBS) there has been revitalization in the Saudi Kingdom at political, military, economic and cultural levels in the last five years.The Kingdom has been reformed under the vision of MBS, which aims at bringing elements of moderation to Saudi society, a futuristic approach to education, pluralism and a corruption-free environment. His Excellency Ambassador Nawaf bin Said Al-Malki, the Saudi Ambassador to Pakistan, has acted as pivot in bringing this Saudi investment to Pakistan. Otherwise he has played an excellent role in the bilateral relationship between Pakistan and Saudi Arabia since last one decade. He played a commendable role in advancing, strengthening and revitalizing the bilateral relationship between Riyadh and Islamabad. Due to his magnanimous personality and commitment to the Pak-Saudi relationship, Ambassador Nawaf bin Said Al-Malki is highly popular among the people of Pakistan, media circles, military and political circles, as well as the academic community of Pakistan.
A renewed optimism has been noted between Pakistan and Saudi Arabia for this new phase of economic cooperation and Saudi investment in Pakistan. The visiting Saudi Minister, Al Faleh said: “I think there are essentially no limits to what Saudi Arabia and Pakistan can do in the economic sphere, just like there are no limits to our friendship, to our bonds, to our historic relations.”Pak-Saudi relationship will further boost as a result of this Saudi investment. Saudi Arabia has always supported Pakistan at crucial times. Both share their concerns over regional and international issues through the bond of bilateralism. During the era of King Salman and Crown Prince MBS, this relationship has further cemented to make a new history of bilateral cooperation at; political, social, military and economic fields.
—The writer is Professor of Politics and IR at International Islamic University, Islamabad.
New phase of Pak-Saudi economic cooperation By Dr Muhammad Khan
Source: https://pakobserver.net/new-phase-of-pak-saudi-economic-cooperation/