Pakistan and Saudi Arabia have entered a new phase of economic partnership by launching a comprehensive Economic Cooperation Framework designed to deepen bilateral engagement and unlock new investment opportunities across diverse sectors. The announcement marks a significant milestone in the long-standing relationship between the two nations, built on mutual respect, shared values, and strategic interests.
The new initiative was formally introduced following a high-level meeting between Saudi Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud and Pakistan’s Prime Minister Muhammad Shehbaz Sharif in Riyadh on October 27, 2025. The meeting reaffirmed both countries’ commitment to strengthening economic and trade ties, with a focus on sustainable development and private-sector collaboration.
According to a joint statement issued by Pakistan’s Ministry of Foreign Affairs, the Economic Cooperation Framework builds on nearly eight decades of close diplomatic and economic relations between the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan. The framework serves as a roadmap for enhancing mutual prosperity, promoting investment-led growth, and driving regional economic integration.
Under the new arrangement, both countries will explore a wide range of strategic and high-impact projects across vital sectors including energy, trade, industry, mining, tourism, agriculture, and food security. The framework emphasizes the importance of leveraging technological innovation and digital transformation to create new business opportunities, particularly in emerging industries such as information technology and renewable energy.
A central component of the agreement involves encouraging the private sector to play a greater role in advancing bilateral trade. The framework is expected to stimulate cross-border investments and strengthen industrial collaboration, ultimately contributing to job creation and economic diversification in both economies.
Among the key initiatives being discussed are the signing of Memoranda of Understanding (MoUs) for an electricity interconnection project and enhanced energy cooperation between the two countries. This collaboration aims to not only support Pakistan’s growing energy demand but also align with Saudi Arabia’s Vision 2030 goals of expanding its global energy partnerships and investing in sustainable power solutions.
Both governments underscored that the new cooperation model reflects a shared vision for economic modernization and long-term development. It also aligns with Pakistan’s ongoing efforts to attract foreign investment and strengthen its role as a strategic economic partner in the region.
The joint statement highlighted that both leaders are looking forward to convening the next session of the Saudi-Pakistani Supreme Coordination Council. This upcoming meeting is expected to further consolidate bilateral ties, assess the progress of ongoing projects, and finalize new agreements aimed at expanding collaboration under the framework.
The Economic Cooperation Framework symbolizes a renewed commitment to building a dynamic partnership that not only enhances trade and investment flows but also contributes to regional stability and shared prosperity. As Pakistan and Saudi Arabia move forward, the collaboration is set to play a pivotal role in shaping the future of economic relations between South Asia and the Middle East.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.