FPCCI Applauds Historic Saudi-Pakistan Strategic Mutual Defense Agreement (SMDA) Research Report Released on Potential Gains

Karachi: Policy Advisory Board of The Federation of Pakistan Chambers of Commerce and
Industry (PAB-FPCCI) has a released a research report titled “A New Chapter in Regional
Security: An Analysis of the Pakistan-Saudi Arabia Strategic Defense Agreement” – and, has
warmly welcomed the signing of the Strategic Mutual Defense Agreement (SMDA) between
Prime Minister of Pakistan, Mian Muhammad Shehbaz Sharif and Crown Prince & Prime
Minister of Saudi Arabia, Mr. Mohammed bin Salman bin Abdulaziz Al Saud.

The report argues that this landmark agreement marks a pivotal moment in the nearly
eight-decade-long partnership between Pakistan and Saudi Arabia – elevating their relationship
into a robust strategic alliance poised to address regional security challenges and foster economic
prosperity.

The SMDA underscores a mutual commitment to collective security, with the joint statement
declaring that “any aggression against one country shall be considered an aggression against
both.”

This agreement strengthens defense cooperation, positioning Pakistan and Saudi Arabia as key
players in promoting regional stability. Both nations have a proven track record as responsible
members of the international community, prioritizing dialogue, diplomacy and peace over
aggression. Their commitment to countering terrorism and fostering global stability makes them
credible partners in advancing security and development.

FPCCI recognizes the agreement’s critical role in addressing the destabilizing actions of rogue
states such as India and Israel. India’s cross-border terrorism and expansionist ambitions,
alongside Israel’s aggression in Gaza and neighboring countries, including Qatar, have
significantly undermined peace in the Muslim world.

The SMDA serves as a powerful deterrent, leveraging Saudi Arabia’s diplomatic influence and
financial strength alongside Pakistan’s proven military capabilities to counter such threats. This
alliance sends a clear message that unilateral aggression will face a unified response, fostering a
pathway to greater peace and prosperity.

Beyond security, the SMDA unlocks significant economic opportunities. For Pakistan, the
agreement enhances deterrence capabilities and leverages Saudi Arabia’s diplomatic influence,
particularly in stabilizing Afghanistan.

By jointly fostering Afghanistan’s potential as a transit hub, Pakistan and Saudi Arabia can
connect Central Asian markets, driving economic growth for the Afghan people and the broader
region. This will strengthen trade linkages among China, Saudi Arabia, Pakistan, Afghanistan,
and Central Asian republics, creating new avenues for prosperity.

FPCCI emphasizes that the SMDA is not an act of hostility but a strategic step toward credible
deterrence and regional cooperation. By restraining destabilizing actions, this alliance paves the
way for global stability, which will be widely welcomed by international stakeholders.

FPCCI congratulates both nations on this historic agreement and looks forward to the enhanced
security, economic, and diplomatic benefits it will bring to Pakistan, Saudi Arabia, and the region
at large.