- Saudi Arabia-Pakistan pact in technology, agriculture and renewable energy can help balance trade disparities
Since Pakistan gained independence in 1947, it has maintained a close and evolving relationship with Saudi Arabia. This partnership has been shaped by deep-rooted cultural ties, economic exchanges, and mutual diplomatic interests. While bilateral relations between the two countries have grown significantly over the decades, there are still several challenges that both sides need to address to fully capitalise on their potential for cooperation.
Economically, bilateral trade between Pakistan and Saudi Arabia stands at approximately $3.5 billion, with a significant trade imbalance favouring Saudi Arabia. Pakistan primarily imports petroleum products, plastic goods, organic chemicals, and fertilisers from Saudi Arabia, while it exports cereals, meat, textiles, beverages, and edible fruits and vegetables to the Kingdom. To address this trade disparity, both nations should explore new avenues of economic collaboration, such as technology transfer, agriculture, renewable energy, and joint ventures in various industries.
A major aspect of Pakistan-Saudi relations is the movement of people. Approximately 2.64 million Pakistanis live and work in Saudi Arabia, encompassing a wide range of professions from businessmen and technocrats to military officers and laborers. This significant Pakistani diaspora not only contributes to Saudi Arabia’s economy but also sends remittances back home, which is vital for Pakistan’s economy. However, there is an urgent need for Saudi Arabia to improve the facilities and conditions provided to Pakistani laborers and investors. To this end, both countries should consider establishing a special board dedicated to managing labor imports from Pakistan. This board could work in collaboration with the Pakistani government to set up training centers that prepare Pakistani workers for employment in Saudi Arabia, ensuring they meet the kingdom’s standards and requirements.
Moreover, there is a humanitarian dimension that needs urgent attention. Around 10,432 Pakistani prisoners are currently held in Saudi jails, often for minor offenses or visa-related issues. The Saudi government should consider taking more concrete steps to address these cases, including the release of prisoners and their rehabilitation. Such measures would not only strengthen diplomatic relations but also enhance Saudi Arabia’s image as a compassionate and just partner in the region.
Investment is another crucial area of cooperation. Saudi Arabia has already invested significantly in Pakistan, particularly in sectors such as construction, information technology, tourism, mining, and logistics. These sectors present promising opportunities for further market expansion and economic growth. Increased Saudi investment in Pakistan can play a pivotal role in boosting the country’s socioeconomic development. At the same time, the Pakistani government must create a conducive environment for foreign investors by ensuring transparency, legal protection, and favorable conditions for Saudi businesses.
High-level delegations between the two countries are frequently exchanged to strengthen diplomatic, economic, and strategic ties. Religious tourism is another important aspect of their bilateral relations, with millions of Pakistani Muslims traveling to Saudi Arabia for Hajj and Umrah every year. This influx is a major source of revenue for Saudi Arabia, further binding the two countries through shared cultural and religious bonds.
In conclusion, while Pakistan and Saudi Arabia have maintained strong bilateral relations for decades, there is room for further strengthening their partnership. By addressing trade imbalances, improving labour conditions, resolving prisoner issues, and enhancing investment opportunities, both nations can build a more strategic and mutually beneficial relationship that contributes to regional stability and prosperity.