With Pakistan and Saudi Arabia recently signing a historic defence pact, policymakers and business leaders are now advocating for the two nations to translate their strategic alignment into structured economic cooperation. The proposed Pak-Saudi Economic Corridor (PSEC) is envisioned as a transformative initiative that could emulate the success of the China-Pakistan Economic Corridor (CPEC), leveraging the new security alliance to generate long-term economic dividends.
The corridor concept arises amid global trade realignments and the need for both countries to diversify their economies. Saudi Arabia is actively pursuing its Vision 2030 agenda to reduce reliance on oil revenues and establish a robust non-oil economy, while Pakistan seeks sustainable investment streams to address energy shortages, revive industrial growth, and boost exports. PSEC could integrate South Asia and the Middle East in unprecedented ways, fostering investment opportunities, job creation, and technology transfer across multiple sectors.
Iftikhar Ali Malik, former president of the SAARC Chamber of Commerce and Industry, has long championed closer Pakistan-Saudi ties and believes that the corridor could consolidate bilateral relations into a multidimensional partnership. Malik emphasized that “just as CPEC transformed Pakistan’s infrastructure and energy outlook, PSEC has the potential to catalyze a new wave of growth, especially if it aligns with Saudi Vision 2030 and Pakistan’s development priorities.”
Bilateral trade between the two countries has been steadily increasing. In fiscal year 2024-25, Pakistan exported more than $700 million to Saudi Arabia, while imports from the Kingdom reached approximately $3.6 billion, largely comprising oil and petrochemical products. The trade relationship is gradually broadening as Saudi investors explore opportunities in agriculture, mining, renewable energy, and information technology.
Agriculture and livestock have emerged as priority sectors under Pakistan’s Special Investment Facilitation Council (SIFC). Last year, a Saudi agribusiness firm signed an agreement to cultivate 5,000 acres of alfalfa fodder in Pakistan for export, addressing Saudi Arabia’s rising demand for livestock feed. Industry experts view this project as a precursor to larger ventures in dairy, meat production, and corporate farming, aligning with Saudi Arabia’s food security objectives.
Business leaders in Pakistan are increasingly supportive of the PSEC concept. Ali Butt, a meat exporter to Saudi and UAE markets, described the corridor as a pivotal next step in the countries’ shared economic future. He noted that “if PSEC is built with careful planning and shared investment, Pakistan’s farmers, livestock sector, young tech professionals, and small manufacturers will all benefit in ways we have long envisioned.”
Economists stress the corridor’s potential to provide investor confidence. Macro economist Osama Siddiqi pointed out that the defence pact establishes trust, which can now be channeled into infrastructure projects such as highways, ports, pipelines, and joint ventures. For Saudi investors, PSEC represents both strategic leverage and commercial returns, while Pakistan gains access to capital, job creation, and capacity-building in sectors like mining and agriculture.
Pakistan’s strategic location at the crossroads of South Asia, the Middle East, and Central Asia adds further advantages. Gwadar port could serve as a vital gateway, shortening transit times and expanding Saudi access to Asian markets. Observers argue that PSEC would not only boost trade but also strengthen supply chain connectivity, technology transfer, and skill development, creating a sustainable and mutually beneficial partnership.
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