The recent defence pact between Pakistan and Saudi Arabia has sparked calls from Pakistan business leaders to initiate a comprehensive Free Trade Agreement (FTA) with Saudi Arabia. Economic experts believe such an agreement could open doors for trade expansion, boost foreign investment, and strengthen economic ties between the two nations.
Strengthening Economic Ties Between Pakistan and Saudi Arabia
Saudi Arabia is one of Pakistan’s largest trade partners, especially in the energy sector. With increasing imports of oil and financial support in times of crisis, Pakistan sees Riyadh as a vital economic ally. A Free Trade Agreement could enhance bilateral relations by lowering tariffs, increasing exports, and creating opportunities for joint ventures in energy, construction, and technology sectors.
Why Business Leaders are Urging an FTA
Pakistan business leaders argue that after the signing of the defence pact, the timing is ideal to expand cooperation into the economic sphere.
- An FTA with Saudi Arabia could help Pakistan improve its export competitiveness.
- It may also diversify Pakistan’s trade portfolio beyond textiles by boosting sectors like agriculture, pharmaceuticals, and IT.
- Increased market access in Saudi Arabia could help stabilize Pakistan’s economy amid rising inflation and debt challenges.
Investment Opportunities and Economic Growth Potential
Saudi Arabia has recently accelerated investments under its Vision 2030 strategy, aiming to diversify away from oil dependency. Pakistan can leverage this by attracting Saudi investment in:
- Energy projects (renewables, oil & gas)
- Infrastructure and construction
- Technology and digital economy
- Tourism and hospitality
Such cooperation could lead to job creation, technology transfer, and long-term economic growth for Pakistan.
Challenges to a Pakistan-Saudi FTA
While the idea of a Pakistan-Saudi Free Trade Agreement is promising, there are challenges:
- Political and diplomatic negotiations may take time.
- Pakistan’s trade deficit with Saudi Arabia is already large due to high oil imports.
- Both nations would need to ensure balanced terms to avoid further trade imbalances.
Still, with the defence pact boosting trust, an FTA discussion is seen as a logical next step.
Regional and Global Economic Impact
A successful Pakistan-Saudi FTA would not only benefit both nations but also strengthen Pakistan’s position in the Middle Eastern and Gulf Cooperation Council (GCC) markets. It could also attract attention from other Gulf nations, paving the way for wider economic partnerships in the region.
Conclusion – The Road Ahead
The demand from business leaders for an FTA with Saudi Arabia reflects Pakistan’s urgent need to expand trade opportunities and attract foreign investment. If realized, this agreement could strengthen bilateral relations, create thousands of jobs, and bring much-needed economic stability.
For Pakistan, moving beyond defence ties to a comprehensive economic partnership with Saudi Arabia could be a game-changer in 2025 and beyond.IFf you interested “Floods Reduce Cotton Arrivals in Punjab” then click it.
