Saudi-Pakistan: Shared history and economic cooperation

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Saudi-Pakistan: Shared history and economic cooperation

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The relationship between Saudi Arabia and Pakistan extends to decades of mutual interests, economic cooperation, military and defense ties and reverence for Islam. Indeed, this relationship has strengthened and evolved over the years with the help of the personal relationships of the respective leadership playing a crucial role in fostering cohesion and solidarity.

Saudi Arabia celebrates its national day annually on September 23, today, to commemorate the proclamation that renamed the Kingdom of Nejd and Hejaz as the Kingdom of Saudi Arabia in 1932 through a royal decree by King Abdul Aziz bin Saud. Since then, the Kingdom has emerged as an economic giant on the map of the world and has been extending financial assistance to other developing Muslim nations, including Pakistan. In fact, it would not be an exaggeration to say that Saudi Arabia recently ‘rescued’ Islamabad from a looming loan default by depositing $3 billion in the country’s central bank.

Above all, over 2.7 million Pakistanis live and work in Saudi Arabia, a major source of much-needed remittances back home. The expatriates in the Kingdom remitted $6.5 billion to Pakistan in the last fiscal year, crucial support to a fragile economy that has been short of foreign exchange reserves to meet even its monthly import bill. The Kingdom also provides oil to Pakistan on deferred payments that are mostly written off as gestures of financial and moral support. Saudi Arabia has always been one of the largest donors to Pakistan in cases of natural calamities like floods and earthquakes, besides extending diplomatic and moral support at all international forums.

The increasing defense and military cooperation between Pakistan and Saudi Arabia will help restore peace and stability in the region, which is vital for the global economy and for prosperity.

Sajjad Qamar

Thousands of Pakistani skilled and unskilled workers join the Saudi labor force annually. Currently, Saudi businessmen are engaged with Pakistani authorities to invest at least $5 billion into different fields, including agriculture and mining. This historic relationship between both nations also extends to the field of education as a significant number of Pakistani students have been studying in Saudi universities on scholarships. Hundreds of Pakistani students including women have graduated from Saudi educational institutions and have been serving in the country in different fields now. Every year, 180,000 people from Pakistan visit the Kingdom to perform Hajj. 

A visionary Saudi religious leader, Mohammad bin Abdulkarim Al-Issa, secretary-general of the Muslim World League, has also played a crucial role in the promotion of moderate Islam in countries like Pakistan, which are infested with militancy. During his visit to Islamabad this April, he laid the foundation stone for the Seerat-un-Nabi Museum, an initiative aimed at promoting understanding and reverence for the life and teachings of the Prophet Muhammad (peace be upon him). This unique museum in Islamabad, already operational in Medina and Senegal, will be equipped with interactive models, video, holographs and virtual reality to highlight important aspects of Prophet Muhammad’s life.

Likewise, the military and defense cooperation between the two countries started in 1967 with the signing of a defense protocol that was later expanded in 1982 and includes joint military exercises and the stationing of Pakistani troops and trainers in the Kingdom for defense purposes. Under Crown Prince Mohammed bin Salman’s Saudi Vision 2030, this military cooperation between the two nations has now expanded to global counter-terrorism issues with former Pakistan army chief General (retired) Raheel Sharif serving as military commander of the Islamic Military Counter Terrorism Coalition of 42 Muslim nations since 2017.

This holistic and wide-ranging cooperation and relationship between Saudi Arabia and Pakistan will be reinforced further in the coming months and years as Islamabad keenly seeks Saudi investments and expertise to bolster its economy. Also, the increasing defense and military cooperation between both countries will help restore peace and stability in the region, which is vital for the global economy and for prosperity.

– The writer is a senior academic with an interest in Middle Eastern studies and political economy. 

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