Pakistan and Saudi Arabia Move Toward CPEC-Style Economic Corridor After Historic Defense Pact
Oct 6, 2025 | 12:00 pm
In a major development for regional trade and investment, Pakistan and Saudi Arabia are reportedly finalizing plans to establish a Pakistan–Saudi Economic Corridor (PSEC) — a landmark project modeled after the China–Pakistan Economic Corridor (CPEC).
The proposed corridor aims to enhance connectivity, trade, and infrastructure development between South Asia and the Middle East, aligning with Saudi Vision 2030 and Pakistan’s long-term growth priorities. Officials say the initiative could open doors for billions in investments, job creation, and technology transfer, marking a new era in Pakistan–Saudi relations.
High-Level Committee Formed to Lead Economic Talks
To move the plan forward, the federal government has formed an 18-member high-level committee, chaired by Prime Minister Shehbaz Sharif, to lead negotiations under the Pakistan–Saudi Arabia Economic Framework.
According to a government notification, the committee will be co-chaired by Senator Musadik Masood Malik, Federal Minister for Climate Change, and Lt. Gen. Sarfraz Ahmed, National Coordinator of the Special Investment Facilitation Council (SIFC).
The panel also includes key ministers and officials from Economic Affairs, Commerce, Energy, IT, Food Security, and Communications, as well as representatives from the State Bank of Pakistan, FBR, SECP, and the Pakistani Embassy in Riyadh.
The committee has been instructed to remain on standby starting October 6, 2025, and will coordinate directly with Saudi counterparts. To ensure swift progress, travel approvals for meetings will be processed within one hour, while progress reports will be submitted to the prime minister every 15 days.
Expanding Cooperation Beyond Defense
Officials say the talks will focus not only on defense and energy cooperation but also on climate resilience, environmental protection, and green technology. The framework will prioritize projects that promote sustainable growth and economic diversification.
Pakistan is expected to push for renewed Saudi investment in oil, agriculture, and infrastructure, potentially under a ‘buy-back’ model. Boosting exports to narrow the $3 billion trade deficit with Riyadh is also a key objective.
Among the major agenda items is the long-delayed oil refinery project, which has been pending for nearly a decade. Sources indicate that Prime Minister Shehbaz Sharif is likely to visit Saudi Arabia in late October to finalize agreements under the new framework.
Strategic Ties Deepen After Mutual Defense Pact
The move comes shortly after last month’s signing of a historic “Strategic Mutual Defense Agreement” between Pakistan and Saudi Arabia — described as a major milestone in their bilateral relations.
The pact, signed during PM Shehbaz Sharif’s visit to Riyadh at the invitation of Crown Prince Mohammed bin Salman, declares that “any aggression against either country shall be considered an aggression against both.”
This defense and economic cooperation marks a significant step toward stronger regional stability, enhanced trade connectivity, and mutual economic growth — positioning both nations as key players in the evolving economic landscape of the Middle East and South Asia.
