Pakistan and Saudi Arabia have officially launched a new Economic Cooperation Framework designed to significantly strengthen trade, investment, and development ties between the two brotherly nations. This important agreement represents a major step forward in the already strong relationship between Pakistan and the Kingdom of Saudi Arabia.
The framework was announced during a high-level meeting between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman in Riyadh. The meeting took place on the sidelines of the Future Investment Initiative (FII9) conference, often called “Davos in the Desert,” which brings together global leaders and investors.
The new Economic Cooperation Framework is comprehensive and covers multiple strategic sectors crucial for both countries’ development. Key areas of cooperation include energy projects, electricity interconnection systems that could link both countries’ power grids, industrial development, information technology, tourism promotion, agriculture modernization, and food security initiatives.
Energy cooperation is particularly significant given Saudi Arabia’s position as a leading oil producer and Pakistan’s growing energy needs. Electricity interconnection could allow power sharing between the two nations, improving energy security for both countries.
Both leaders strongly reaffirmed their commitment to building sustainable economic partnerships that benefit their populations over the long term. They emphasized the importance of enhanced private sector collaboration, encouraging businesses from both countries to invest in each other’s markets and create joint ventures.
The framework aims to substantially increase bilateral trade volume between Pakistan and Saudi Arabia. Currently, trade between the two countries has significant potential for growth, and this new cooperation structure provides the roadmap for achieving that expansion through reduced barriers and increased investment flows in both directions.
