S Arabia pushes for agreed reforms

But it is not clear so far whether it will acquire 15% shareholding or not. Earlier, Saudi Arabia had also announced an investment of $10 billion in setting up a refinery in Gwadar.

Pakistan still hopes that Riyadh will invest in this project and has therefore approved incentives under the new refinery policy to attract the Gulf Arab nation and some other foreign investors. The Saudi side has requested three sets of submissions, which include cooperation proposals, progress on initiatives and advancement on agreed policy measures.

It initially sought complete information by September 14, 2026 as Pakistan's embassy in Riyadh had conveyed that request to the Pakistani side on September 8, sources said. The reporting exercise follows extensive technical work involving ministries from both countries.

That work examined reforms and economic opportunities across 12 sectors,. The diagnostic process started in September 2025,, and joint sessions and two review workshops subsequently proposed sector-level initiatives and policy measures. The framework was publicly announced after Prime Minister Shehbaz Sharif met Saudi Crown Prince Mohammed bin Salman in Riyadh on October 27, 2025.

Affairs, both leaders agreed to launch the framework during the meeting. It described stronger bilateral trade and investment relations as a central objective. The official announcement identified energy, industry, mining and information technology as priority sectors.

Tourism, agriculture and food security were also included among targeted areas. Both governments also agreed to examine strategic projects with significant economic impact including proposed cooperation in energy and electricity interconnection between the two sides.

Saudi Arabia and Pakistan planned stronger private-sector participation under the framework. Their stated objective targeted trade expansion alongside government-to-government economic cooperation. The latest implementation mechanism has provided more details about how progress could be monitored.

Ministries must identify achievements, bottlenecks, responsible agencies, timelines and required resources, said officials. Initiative progress cards cover jointly endorsed projects for the 2025-2030 implementation period. Saudi Arabia has sought implementation commitments from ministries that must provide milestones extending through 2030 and identify outstanding implementation requirements.

Policy progress cards apply similar monitoring requirements to agreed regulatory and institutional reforms. They also require ministries to document consultations, approvals, remaining actions and implementation constraints. A third format covers new areas where Pakistan is seeking cooperation from Saudi Arabia.

These proposals can include investment cooperation, technical assistance and private-sector engagement. Knowledge sharing and regulatory coordination can also be requested through these proposals. Saudi Arabia wants Pakistan to explain each submission containing expected benefits for Pakistan, Saudi Arabia or both countries.

The exercise has followed earlier work to integrate Saudi-Pakistan proposals into Pakistan's domestic planning. Inter-ministerial sessions were held to align relevant initiatives with the Prime Minister's Strategic Roadmap, said officials. The framework builds upon the existing institutions connecting both countries economically, which comprises bilateral coordination mechanisms and the Saudi-Pakistan Joint Business Council.

A Saudi business delegation also visited Pakistan during October 2025 for investment discussions, during which delegates examined opportunities spanning minerals, energy, agriculture, infrastructure, tourism and real estate.