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Saleh Riaz
Critical Thinking Batch 4
First Step Toward Becoming a Global Power
Pakistan is going through the worst economic condition. At this time the SMDA pact with Saudi Arabia not only revives the economic condition of Pakistan, but also invests heavily in military development. This pact also boosts the export sector of Pakistan. Saudi Arabia currently holds $5 billion in deposits with the State Bank, with $2 billion maturing in December 2025 and the rest by mid-2026. Likewise, the $1.2 billion oil-on-deferred-payment facility revived this year should not remain ad hoc.
This not only brings economic stability in Pakistan. But this agreement is likely to redefine the regional security by using the influence of Pakistan’s nuclear arsenal and Saudi Arabia’s financial heft. Saudi Arabia has doubts about U.S security guarantees after the Isreali attack on Hamas leadership in Qatar which is most closely non-NATO ally of Usa. This pact with Pakistan may be Riyadh’s way of signaling some unease to Washington. This pact also a threat to India because it says “An attack on one is attack on both”. The Pact theoretically allows Pakistan to seek diplomatic or material backing in a future India–Pakistan conflict.
