Pak, Saudi Arabia agree on economic framework to strengthen bilateral trade and investment

Islamabad, Pakistan and Saudi Arabia have agreed on an economic framework to strengthen bilateral trade and investment, just weeks after agreeing on a joint defence pact, it was announced on Tuesday.

The two countries decided to launch an Economic Cooperation Framework after a meeting between Crown Prince Mohammed bin Salman and Pakistan Prime Minister Shehbaz Sharif during the latter’s visit to Riyadh on Monday.

A joint statement issued by Saudi Arabia and Pakistan said that based on the depth of the historic partnership spanning nearly eight decades, the two countries decided to launch an Economic Cooperation Framework.
“This framework is based on the two countries’ shared economic interests and reaffirms their mutual desire to strengthen trade and investment relations to serve their common interests,” according to the joint statement.

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.

“Priority sectors include energy, industry, mining, information technology, tourism, agriculture and food security,” it said.Both sides are currently studying several joint economic projects, including signing a Memorandum of Understanding (MoU) for the electricity interconnection project between the Kingdom and Pakistan, in addition to signing of an MoU for cooperation in the field of energy between the two nations, it said.”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,” it said.

The leaders of the two countries also look forward to convening the meeting of the Saudi-Pakistani Supreme Coordination Council.

The decision to make joint efforts for economic development comes after the two countries signed a historic defence pact last month.

The Strategic Mutual Defence Agreement is a defence pact where an act of aggression against one country is considered an act against both.