By Hamid Mahmood ISLAMABAD, Feb. 17 (INP-WealthPK) Pakistan is working to go beyond security cooperation and cultural relations with its long-time partner Saudi Arabia, and the latter is trying to diversify its oil-dependent economy by interacting with other South Asian nations. According to WealthPk research, Pakistan shipped $412.35 million worth of exports to Saudi Arabia in 2019, while the figure climbed by $24.68 million to $437.03 million in 2020. In October 2021, bilateral trade volume was roughly $3.27 billion, up by $0.94 billion (40.34%) over the previous year. This massive trade volume demonstrates a strong bilateral relationship. Rice, bovine meat, and house linens are the key products exported to Saudi Arabia.

Source: UN Comtrade Database/ WealthPk Research

Pakistan's primary source of fuel supply is Saudi Arabia that also provides substantial financial assistance when Pakistan  faces economic difficulties. Remittances from the Pakistani migrants working in Saudi Arabia is an important source of income for Pakistan. Both nations have recently exchanged high-level delegations and devised strategies to boost cooperation in areas such as commerce, education, real estate, tourism, information technology, communications, and agriculture. Pakistan and the Gulf Cooperation Council (GCC) have a long history of economic and political cooperation. These Gulf States, led by Saudi Arabia, have always been instrumental in improving Pakistan's economy. The Pakistani labour requires access to the Gulf markets. Pakistan's new geo-economics policy must address how the country could be a more appealing commercial partner for its Gulf friends. The GCC, with whom Pakistan is pursuing a free trade deal, is assisting in the growth of commercial connections with Pakistan. Saudi Arabia began to participate in the CPEC projects in 2019 and has inked $20 billion worth of MOUs in various areas of economy. A staggering amount of $10 billion was set aside for a refinery and petrochemical complex in Gwadar. However, a feasibility study by the Aramco concluded that building a refinery [at Gwadar] was not viable. The report instead suggested that a refinery in Karachi might be built in the next five years. Aramco continues to assess promising investment prospects in Pakistan's downstream energy industry, particularly those related to the CPEC. Saudi Arabia's participation indubitably will increase the worth of the CPEC. Saudi Arabia’s joining as a big investor in certain large projects will help boost Pakistan's economy. China has emerged as an industrial hub and is now the world's second-largest economy after the United States. Meanwhile, Saudi Arabia is a hub of the oil industry, with a sizable Pakistani diaspora. Pakistan might play a key role in bridging the commercial and geopolitical divide between China and Saudi Arabia. Since China imports oil from Saudi Arabia, Pakistan might serve as a channel for oil between the two countries. According to the statistics released by China’s General Administration of Customs in August 2021, Saudi Arabia was the world's largest oil supplier to China. Saudi oil imports rose 53 percent to 8.06 million tonnes or 1.96 million barrels per day (bpd) from a year earlier, with Russia standing second with 6.53 million tonnes or 1.59 million (bpd). The route included the lengthy Strait of Malacca that cost the Chinese economy a fortune. With the CPEC in place and Gwadar fully operating, Pakistan may serve as a bridge that not only shortens the distance and tackles other challenges confronting China today, but also lowers the cost of transportation. There are many unexplored opportunities in the Pak-Saudi relations. These include agriculture, construction, and of course the ever-important human resource market. Moreover, the government should promote SEZs and CPEC opportunities in terms of business to government level (B2G) and business to business (B2B) level, meetings, exhibitions, and trade delegation exchanges, as their execution will undoubtedly improve trade volume and boost exports between Pakistan and Saudi Arabia. To benefit the most from the government’s economic strategy, the geo-economic narrative must be presented at a rapid speed, with a focus on investment and growth in the country. The government's change to a geo-economic strategy is a well-received paradigm shift. The present geopolitical strategic depth must be transformed into geo-economic strategic depth.