Pakistan, Saudi Arabia agree to strengthen ties through CPEC-Style corridor after defense agreement

Pakistan and Saudi Arabia are planning to take their partnership to the next level with a new CPEC-style economic corridor aimed at boosting trade, investment, and regional connectivity between South Asia and the Middle East.

This initiative comes after the Strategic Mutual Defense Agreement signed last month during Prime Minister Shehbaz Sharif’s visit to Riyadh, where he was hosted by Saudi Crown Prince Mohammed bin Salman.

High-Level Committee Formed to Lead Talks:

To turn this plan into action, Prime Minister Shehbaz Sharif has formed an 18-member high-level committee that will lead discussions under the newly established Pakistan-Saudi Economic Framework.

According to a government notification, the committee’s goal is to “expand cooperation beyond defense and energy to include environmental protection and climate stability.”

The team will be co-chaired by Federal Minister for Climate Change Senator Musadik Masood Malik and Lt. Gen. Sarfraz Ahmed, who serves as the National Coordinator of the Special Investment Facilitation Council (SIFC).

Other members include key ministers from the Economic Affairs, Commerce, IT, Food Security, and Communications ministries, along with senior officials from the State Bank, FBR, SECP, and Pakistan’s embassy in Riyadh.

The committee will start work today, October 6, 2025. To ensure speed, all travel approvals for talks will be cleared within one hour, while the SIFC will oversee coordination. Progress reports will be submitted to the Prime Minister every 15 days.

Focus on Trade, Investment, and Economic Growth:

Under this new plan, Pakistan hopes to attract Saudi investments in oil, agriculture, and infrastructure projects, following a “buy-back” model. The government also aims to reduce the current USD 3 billion trade deficit that favors Saudi Arabia.

The much-delayed oil refinery project is back on track, with Prime Minister Shehbaz Sharif expected to visit Riyadh later this month to finalize new investment deals.

Analysts believe this move merges both economic and security goals. For Saudi Arabia, it aligns with Vision 2030, which focuses on economic diversification. For Pakistan, it’s a chance to bring in much-needed investment and strengthen its financial position.

If successfully implemented, the new corridor could reshape regional trade routes and open up vast opportunities, positioning Pakistan as a key bridge between the Gulf and South Asia.

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