Pakistan and Saudi Arabia Eye Economic Corridor After Historic Pact

A major initiative inspired by CPEC aims to boost regional connectivity

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Pakistan and Saudi Arabia Eye Economic Corridor After Historic Pact


Pakistan and Saudi Arabia are taking decisive steps toward launching the Pakistan–Saudi Economic Corridor (PSEC), a transformative partnership modeled on the China–Pakistan Economic Corridor (CPEC). Designed to strengthen economic ties between South Asia and the Middle East, this initiative is aligned with Saudi Arabia’s Vision 2030 and Pakistan’s long-term development priorities. It aims to accelerate trade, attract investment, and promote technology exchange between the two nations.

To advance this ambitious goal, Prime Minister Shehbaz Sharif has established an 18-member high-level committee to oversee and execute negotiations under the Pakistan–Saudi Arabia Economic Framework. The committee will be jointly led by Federal Minister for Climate Change Senator Musadik Masood Malik and Special Investment Facilitation Council (SIFC) National Coordinator Lt. Gen. Sarfraz Ahmed.

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Members include key federal ministers for Economic Affairs, Commerce, Energy, IT, Food Security, and Communications, alongside representatives from the State Bank of Pakistan, FBR, SECP, and Pakistan’s Embassy in Riyadh. The committee’s primary objective is to broaden cooperation beyond defense and energy to include environmental sustainability and climate initiatives.

To ensure efficient progress, the committee has been instructed to maintain constant readiness for negotiations starting October 6, 2025. The SIFC will manage operational logistics, and travel approvals for related meetings will be processed within an hour. The committee can also induct additional experts as required and must submit biweekly progress reports to the prime minister.

Pakistan is expected to seek fresh Saudi investment in oil and agriculture under a buy-back model, while pushing to enhance exports to reduce the current $3 billion trade deficit. The long-pending oil refinery project is also likely to be revived as part of the discussions. Prime Minister Shehbaz Sharif is anticipated to visit Saudi Arabia in late October to finalize economic agreements under the new framework.

This economic collaboration follows the landmark “Strategic Mutual Defense Agreement” signed last month between the two countries. The defense pact, announced during the prime minister’s visit to Riyadh, declares that “any aggression against either country shall be considered an aggression against both,” marking a new era of strategic and economic partnership between Pakistan and Saudi Arabia.