Pakistan forms high-level committee for economic talks with KSA after historic defence pact

The 18-member body will function under the Pakistan–Saudi Arabia Economic Framework

ISLAMABAD:

The federal government, in pursuance of the historic defence agreement between Pakistan and Saudi Arabia, has constituted an 18-member high-level committee. The task of the committee is to lead economic negotiations between the two nations under the Pakistan–Saudi Arabia Economic Framework, the government notification said.

As per the notification, the committee, formed by Prime Minister Shehbaz Sharif, will supervise discussions aimed at expanding cooperation beyond defence and energy to include environmental protection and climate stability.

The committee will be co-chaired by Federal Minister for Climate Change Senator Musadik Masood Malik and Special Investment Facilitation Council (SIFC) National Coordinator Lt. Gen. Sarfraz Ahmed.

Other members include Federal Minister for Economic Affairs, Ahad Cheema; Minister for Commerce, Jam Kamal Khan; Minister for Energy, Awais Leghari; Minister for Food Security, Rana Tanveer Hussain; Minister for Information Technology, Shaza Fatima Khawaja; and Minister for Communications, Abdul Aleem Khan. Senior officials such as SECP Chairman, Akif Saeed and State Bank Deputy Governor Dr Inayat Hussain are also part of the team.

The committee will also include representatives from the State Bank of Pakistan (SBP), the Federal Board of Revenue (FBR), the Securities and Exchange Commission of Pakistan (SECP), and the Pakistani Embassy in Riyadh to ensure comprehensive coordination.

According to the notification, the co-chairs will form dedicated teams to conduct rapid negotiations with their Saudi counterparts. All members have been instructed to ensure their availability starting October 6, 2025.

The establishment of the committee reflects Pakistan’s intention to broaden bilateral cooperation with Saudi Arabia beyond traditional sectors. The inclusion of both civilian and military officials aims to ensure close coordination between economic diplomacy and defence institutions.

The Prime Minister’s Office has directed the committee to expedite negotiations with Saudi Arabia. It also instructed that travel approvals for any related meetings be processed on the same day, within one hour. The SIFC will facilitate the committee’s operations and send travel recommendations to the Prime Minister’s Office for swift approval.

The committee may induct additional members when necessary and will submit performance reports every fifteen days to the prime minister.

Sources said that during upcoming talks, Pakistan is expected to request renewed Saudi investment in the oil and agriculture sectors under a ‘buy-back’ model.

Islamabad also plans to enhance Pakistan's exports to reduce $3 billion trade deficit currently in Saudi Arabia’s favour. The long-delayed oil refinery project, pending for nearly a decade, is also likely to be discussed.

They added that Prime Minister Shehbaz Sharif is expected to undertake an official visit to Saudi Arabia in the last week of October to finalize economic agreements under the new bilateral framework.

Last month, Pakistan and Saudi Arabia signed a landmark "Strategic Mutual Defense Agreement", declaring that "any aggression against either country shall be considered an aggression against both"," according to a Pak-Saudi joint statement.

The pact was signed during Prime Minister Shehbaz Sharif's visit to Riyadh at the invitation of Saudi Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud.

"Building on the historic partnership extending for nearly eight decades between the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan, and based on the bonds of brotherhood and Islamic solidarity, as well as shared strategic interests and close defense cooperation between the two countries, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister and His Excellency Mr. Muhammad Shehbaz Sharif, Prime Minister of the Islamic Republic of Pakistan signed the 'Strategic Mutual Defense Agreement'," the statement read.

It added that the agreement "reflects the shared commitment of both nations to enhance their security and to achieving security and peace in the region and the world, aims to develop aspects of defense cooperation between the two countries and strengthen joint deterrence against any aggression."

The agreement states that any aggression against either country shall be considered an aggression against both."

Pakistan and Saudi Arabia have longstanding strategic and defense cooperation but the latest pact is seen as significant against the backdrop of recent developments including Israeli strikes on Qatar.