KARACHI: Pakistan’s recent defense pact with Saudi Arabia can help Islamabad stabilize its economy via increased jobs, sharing of technology and exports to the Kingdom, defense and economic experts said on Thursday.
Pakistan and Saudi Arabia on Wednesday signed a “Strategic Mutual Defense Agreement” pledging that aggression against one country would be treated as an attack on both, a move that will enhance joint deterrence and strengthen decades of military and security cooperation. The accord comes at a time of extreme volatility in the Middle East, where prolonged conflicts have heightened fears of wider instability, reinforcing the urgency Gulf states place on stronger security and defense partnerships.
It also takes place as Pakistan looks to escape a prolonged macroeconomic crisis that forced it to secure loan packages from the International Monetary Fund (IMF). Saudi Arabia has bailed Pakistan out of financial troubles over the years, extending loans to the South Asian country and providing it oil against deferred payments.
Mushahid Hussain Syed, former chairperson of the Senate Standing Committee on Defense, noted that enhanced defense ties between the two allies could have positive implications for Pakistan’s economy.
