Pakistan and Saudi Arabia on Tuesday launched the Economic Cooperation Framework, which builds on their shared economic interests and reaffirms their desire to strengthen trade and investment relations, according to a statement from the Ministry of Foreign Affairs (FO).
The decision to launch the framework was taken during a meeting on Monday 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, the statement said.
FII9 convened global leaders, investors, policymakers and innovators to explore the theme “The Key to Prosperity: Unlocking New Frontiers of Growth” and discuss key issues such as innovation, sustainability, economic inclusion and geopolitical shifts.
“As part of the framework, several strategic and high-impact projects in the economic, trade, investment and development fields will be discussed that will contribute to strengthening cooperation between the two governments, enhancing the fundamental role of the private sector and increasing trade exchange between the two countries,” the statement read.
He added that the agreement would prioritize sectors such as energy, industry, mining, information technology, tourism, agriculture and food security. Additionally, Islamabad and Riyadh are studying several joint economic projects, including signing memorandums of understanding (MoU) for a power interconnection project between the two countries and cooperation in the energy field.
“This framework represents an extension of the efforts of both countries to strengthen their fraternal relations and reaffirms their shared vision towards building a sustainable partnership in various economic, trade and investment fields in a manner that meets the aspirations of their leaders and the brotherly people of both nations and serves their mutual interests,” the statement read.
Pakistan and Saudi Arabia have long shared a multifaceted relationship based on strategic military cooperation, mutual economic interests and shared Islamic heritage. These ties have spanned economic assistance and energy supplies, with Riyadh being a major source of financial aid and oil for Islamabad.
Last month, the two nations signed a “Strategic Mutual Defense Agreement” in Riyadh, pledging that any attack against either nation would be treated as an act of aggression against both.
A statement from the Prime Minister’s office announced the signing of the pact during a meeting at the Yamama Palace in Riyadh, stating that “any aggression against either country will be considered an act of aggression against both.”
“This agreement, which reflects the shared commitment of both nations to improve their security and achieve security and peace in the region and the world, aims to develop aspects of defense cooperation between the two countries and strengthen joint deterrence against any aggression,” the statement reads.
In 2024, Islamabad and Riyadh signed 34 MoUs worth $2.8 billion, following an earlier agreement of 27 MoUs valued at $2.2 billion.
