Implications of the Iran-Saudi Deal for Pakistan

Written by Syed Ali Abbas

May 9, 2023

"Pakistan values its close ties with Iran and Saudi Arabia. Iran is an important neighbor, and Saudi Arabia employs almost three million overseas Pakistanis and provides financial support in times of need. Pakistan can use this opportunity to seek crucial investments from both countries to ensure the China-Pakistan-Economic-Corridor’s success. Saudi Arabia and Iran are participants in the BRI. (Belt and Road Initiative)

Both Iran and Saudi Arabia have already shown interest in investing in Pakistan. Iran has vast reserves of untapped natural gas and energy resources that could help develop Pakistan’s gas and electricity transmission systems to overcome the burgeoning energy crisis. Similarly, it would benefit Pakistan to attract investments from Saudi Arabia to develop its oil and gas sector—particularly in exploration and production—which could help reduce the country’s reliance on imported oil, shoring up foreign exchange reserves.

Pakistan’s geography offers vast opportunities for regional connectivity, whose dividends will be collectively helpful for regional and international players. Moreover, this convergence will also help address complex geopolitical challenges to inter-regional connectivity and stability, such as Afghanistan. The overall regional security situation may improve because of an added inclination to resolve conflicts and lower regional tensions. This normalization would bring both parties to resolve issues through negotiations, which could help reduce sectarianism and extremist groups’ influence outside their border through proxies."

Source:

https://southasianvoices.org/implications-of-the-iran-saudi-deal-for-pakistan/

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