Pakistan and Saudi Arabia on Tuesday launched the Economic Cooperation Framework, which is based on their shared economic interests and reaffirms their desire to strengthen trade and investment relations.

The decision to launch the framework was taken during a Monday meeting 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, according to a statement from the Foreign Office (FO).

The FII9 convened global leaders, investors, policymakers, and innovators to explore the theme, ‘The Key to Prosperity: Unlocking New Frontiers of Growth’ and discuss key topics such as innovation, sustainability, economic inclusion, and geopolitical shifts.

“As part of the framework, several strategic and high-impact projects will be discussed in the economic, trade, investment and development fields that will contribute to strengthening cooperation between the two governments, enhancing the pivotal role of the private sector, and increasing trade exchange between the two countries,” the statement read.

It added that the deal would prioritise sectors including energy, industry, mining, information technology, tourism, agriculture and food security. Additionally, Islamabad and Riyadh are studying several joint economic projects, including signing memoranda of understanding (MoU) for an electricity interconnection project between the two countries and cooperation in the energy field.

“This framework represents an extension of both countries’ efforts to strengthen their fraternal relations and reaffirms their shared vision toward building a sustainable partnership across various economic, trade and investment fields in a manner that fulfils the aspirations of their leaderships and the brotherly peoples of both nations and serves their mutual interests,” the statement read.

Celebrating the announcement, Information Minister Attaullah Tarar said: “Another historic chapter unfolds in Pakistan-Saudi relations.”

He said the developed marked a “high point” in the partnership between the two countries, strengthening trade, energy and investment ties.

Discussion at Ninth Edition of the Future Investment Initiative

Participating in a discussion at the Ninth Edition of the Future Investment Initiative, PM Shehbaz said Pakistan was rich in resources. He said “very honest mistakes” were made in the country’s history but it had learnt from them.

“Important thing is to learn from your mistakes and that is what we are doing. At this point in time, we are undertaking most robust changes and deeprooted reforms which are deeply required,” the premier said, pointing to the digitisation of the Federal Board of Revenue to tackle corruption.

The prime minister said Pakistan was among the countries that were most exposed to the effects of climate change through no fault of theirs, adding that the country’s carbon emissions were “less than a fraction of one per cent”.

PM Shehbaz said Pakistan was stuck in a loop of climbing the ladder and coming back down due to repeat climate disasters such as the floods of 2022 and this year.

“This is not acceptable. This is not where humanity should be directed towards. It has to be mutual cooperation,” he said, adding that loans alone were not the solution.

The premier said that if humanity was to move forward, it would have to do so in unison while sharing its “bounties and grievances together”.

He said his government would turn Pakistan around with untiring efforts and making the best of its available resources.

PM Shehbaz also said that Pakistan was fast moving towards the increasing adoption of technology and artificial intelligence, though he did also warn about the risks of the latter.

He said the global north and the global south should sit down and come to an agreement on the equitable distribution of resources for an egalitarian economy for all.

FM Dar meets Saudi counterpart

Meanwhile, Deputy Prime Minister and Foreign Minister Ishaq Dar met with his Saudi counterpart, Faisal bin Farhan al Saud, in Riyadh to discuss bilateral relations, regional and international developments, according to the FO.

The pair also discussed the humanitarian crisis in the Gaza Strip and “reaffirmed their shared commitment to cooperation at multilateral fora, including the United Nations”, according to a post on X by the FO.

“They agreed to further deepen the Pak-Saudi multifaceted partnership across all domains, and to continue strengthening the bonds of brotherhood and friendship between the two countries,” the post read.

Pak-Saudi relationship

Pakistan and Saudi Arabia have long shared a multifaceted relationship rooted in strategic military cooperation, mutual economic interests, and shared Islamic heritage. These ties have encompassed economic assistance and energy supplies, with Riyadh being a significant source of financial aid and oil for Islamabad.

Last month, the two nations signed a “Strategic Mutual Defence Agreement” in Riyadh, pledging that any attack on either nation would be treated as an act of aggression against both.

A statement from the PM’s office announced the signing of the pact during a meeting at Riyadh’s Yamama Palace, which stated that “any aggression against either country shall be considered an act of aggression against both”.

“This agreement, which reflects the shared commitment of both nations to enhance their security and to achieve security and peace in the region and the world, aims to develop aspects of defence cooperation between the two countries and strengthen joint deterrence against any aggression,” the statement read.

In 2024, Islamabad and Riyadh signed 34 MoUs worth $2.8 billion, following an earlier deal of 27 MoUs valued at $2.2bn.