Strategic Partnership Between Pakistan and Saudi Arabia
On September 17, Pakistan signed a “Strategic Mutual Defence Agreement” (SMDA) with Saudi Arabia. This agreement marks a significant shift in the bilateral relationship between the two nations, highlighting their shared strategic interests. Islamabad has emphasized this deal as a major diplomatic achievement, especially in light of its ongoing efforts to strengthen ties with Riyadh. The pact is expected to bring economic benefits to Pakistan, which is currently facing financial challenges.
Saudi Arabia has offered concessional financial aid and oil supplies with deferred payments, providing much-needed relief to Pakistan’s economy. While Pakistan has not explicitly confirmed the details of the agreement, it has highlighted the clause that states “any aggression against either country shall be considered an act of aggression against both.” This language is intended to signal Saudi Arabia’s support for Pakistan in case of any external threats.
However, the agreement has also sparked concerns, particularly with the upcoming visit of the Taliban foreign minister to Delhi. This development could cast a shadow over Pakistan’s diplomatic achievements with Saudi Arabia and its relationship with the United States. Despite these uncertainties, the SMDA represents a step toward re-establishing Pakistan’s role in the Middle East as a regional security provider.
Economic Dimensions of the Relationship
The economic component of the Pakistan-Saudi relationship is now being operationalized following the signing of the SMDA. An 18-member committee has been formed to negotiate the terms of economic engagement between the two countries. The committee will be co-chaired by Climate Change Minister Musadik Malik and Lieutenant General Sarfraz Ahmad, the national coordinator for the Special Investment Facilitation Council (SIFC).
Saudi Arabia is a major destination for Pakistani workers, particularly those employed in the construction and service sectors. According to data from the Bureau of Emigration & Overseas Employment, Pakistan sent 1.88 million workers to Saudi Arabia between 2020 and 2024—an increase of 21 percent compared to the 1.56 million workers sent between 2015 and 2019. Remittances have also risen significantly, from $7.39 billion in 2020 to $8.59 billion in 2024.
To further enhance the employability of Pakistani workers, the government has taken steps to improve their skills. Prince Mansour bin Mohammad Al Saud, chairman of the Saudi-Pakistan Joint Business Council, is already in Islamabad to discuss trade and investment opportunities.
Financial assistance from Saudi Arabia has been a key aspect of the bilateral relationship. Although there was a brief interruption in 2020 when Riyadh asked Pakistan to repay a $3 billion loan due to criticism over the Kashmir issue, the relationship was restored in 2021. Saudi Arabia agreed to provide $3 billion in deposits and $1.2 billion and $1.5 billion worth of oil on deferred payments after then-Prime Minister Imran Khan’s visit. In March 2024, Pakistan signed an agreement with the Saudi Fund for Development to defer $1.2 billion in oil import payments for a year, along with a monthly supply of $100 million worth of oil on deferred payment.
Political and Defence Cooperation
Pakistan’s relationship with Saudi Arabia is rooted in Islamic solidarity, generous economic aid, and the provision of military services. The Saudi Royal family and holy shrines in Mecca and Medina are protected by Pakistani armed forces. Additionally, Saudi Arabia has often served as a refuge for Pakistani politicians and military leaders. For example, Nawaz Sharif found political asylum in Saudi Arabia, and General Musharraf was offered refuge after being ousted from power.
The defence cooperation between the two countries dates back to 1967, with formalized agreements in 1982. This allowed Pakistan to deploy around 1,600 troops and provided training to Saudi armed forces. Since 1967, Pakistan has trained 8,200 Saudi personnel. In 2018, an additional 1,000 soldiers were deployed for internal security duties in Saudi Arabia.
Despite these longstanding ties, Pakistan has previously rejected Saudi requests to join the coalition force in Yemen and declined to provide troops, ships, or warplanes. The new SMDA is seen as a continuation of this existing defence cooperation.
Realities and Challenges
The current geopolitical landscape in the Middle East adds complexity to the SMDA. Recent tensions, including Israel’s attacks on Iran and the UAE, have created uncertainty in the region. While some view the agreement as additional insurance for Saudi Arabia, it also strengthens Pakistan’s ties with Riyadh. However, Pakistan faces challenges, particularly with India’s growing influence in the region.
Historically, Saudi Arabia has maintained close ties with New Delhi, and it is unlikely to dilute these relationships. The question remains whether either country would be willing to fight another’s war. Both Pakistan and Saudi Arabia are cautious about becoming entangled in each other’s regional conflicts.
The definition of “aggression” in the SMDA is also unclear. It is uncertain whether the agreement applies to all-out wars or more ambiguous situations, such as threats from non-state actors. This ambiguity could affect how the agreement is implemented in practice.
