Pak-Saudi Economic Ties

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Pakistan has had strong bilateral, cultural, religious, political, strategic, and military relations with the kingdom of Saudi Arabia since its creation. Both states are working together extensively at domestic, bilateral, regional, and international levels and within the framework of different organizations. The economic factor is the main factor between KSA and Pakistan relations. Pakistan has largely dependent on the economic aid of KSA in different Sectors. Since the 1960s KSA has been very generous when it comes to providing aid to Pakistan. KSA always stands along with Pakistan in a difficult situations. In the 1990s when sanctions were imposed on Pakistan, KSA stood with Pakistan and give loans and aid to Islamabad. In 2005 about 10 million dollars aid in humanitarian by KSA when a devastating earthquake hit Baluchistan. In 2010 and 2011 when the flood swept Pakistan, KSA granted 170 million dollars to Pakistan for relief operations. In 2018 KSA come to rescue the financial condition of Pakistan and agreed to a loan of 6 billion dollars in payment to IMF. 3 billion dollars loans and 3 billion dollars relief on oil were given by Muhammad Bin Salman. Similarly, the KSArelief package is also a program of the Saudi government in Pakistan to provide public relief. KSA is also interested in CPEC also signed in the energy sector and oil reefing in Gawadar. More than 2 million Pakistani people are working in KSA in different fields. KSA and UAE are the main providers of jobs for Pakistani people. Remittances from both countries are a key resource of economic conditions and the foreign currency treasury of Pakistan. About 4.5 billion dollars in remittances annually are coming from KSA and 3.47 billion dollars from UAE. On the trade side, many efforts have been made by KSA and Pakistan. Oil-based products and crude oil are the main imports of Pakistan by KSA. On the other hand, Pakistan exports spices, rice, meat products, chemicals, textiles, footwear, and leather goods. About 3.6 billion dollars in bilateral trade is going on each year. The new government in Pakistan is ambitious to further deepen these ties, this could be more appreciable if other grounds of cooperation except assistance will explore.

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