Pakistan-Saudi Arabia Relations: Challenges and Opportunities

Foreign Policy
Series
FPS.KSA.1
Pakistan - Saudi Arabia Relations
F
Challenges
g
i
e
r
o
Opportunities
er
i
e
S
s
y
c
i
l
o
P
n
Office # 101, Silver Oaks
F-10, Islamabad, Pakistan
Tel: +92 (51) 2809814 | Fax: +92 (51) 2809815 | e-mail: [email protected] www.cpakgulf.org
os
From H
The CPGS is an independent, non-partisan and not-for-profit think tank with a vision to
innovate future prospects for peace and security through intellectual discourse, and contribute
to sustainable social, political and economic development.
CPGS is a registered non-profit entity under the Societies Registration Act XXI of 1860, Pakistan.
Copyright © the Centre for Pakistan and Gulf Studies (CPGS) and the Konrad-Adenauer-Stiftung (KAS)
All rights reserved
Printed in Pakistan
Published September 2014
Any part of this publication cannot be used or cited without
a clear reference to this publication and CPGS
Office 101, Silver Oaks, F-10, Islamabad, Pakistan
PO Box: 1486 Islamabad T: (0092-51) 2809814 F: (0092-51) 2809815
E: [email protected] W: www.cpakgulf.org
Foreign Policy Roundtable Series
Pakistan-Saudi Arabia Relations:
Challenges and Opportunities
Roundtable Report VIII
Introduction
The Centre for Pakistan and Gulf Studies (CPGS) is a non-partisan think tank established with a vision to
Innovate future prospects for peace and security in the region and beyond through intellectual discourse
and contribute to sustainable social, political and economic development. To this end, the CPGS has
organized this roundtable discussion under the initiative the Centre has embarked upon, i.e., 'CPGS Foreign
Policy Roundtable Series' , with the aim to review the foreign policy of Pakistan towards its partner states
and major powers of the world. 'Pakistan-Saudi Arabia Relations: Challenges & Opportunities' is the
eighth roundtable of the series; the first was on 'Pakistan-U.S. Relations: Convergences and Divergences'
held in November last year, the second was on 'Pakistan-Russia Relations: Prospects and Challenges', held
in December 2013, the third was on 'Pakistan-Afghanistan Relations-U.S. Drawdown and its Implications
for Pakistan', held in January 2014, the fourth was on 'Pakistan-China Relations: Prospects and Challenges',
held in February 2014, the fifth was on 'Pakistan-EU Relations: Convergence and Divergence', also held in
February 2014. The sixth was on 'Pakistan-India Relations: Challenges and Prospects', held in March 2014.
The seventh was on 'Pakistan Iran relations; Challenges and Prospects', held in June 2014.
3
Background
Historical relations between Pakistan and Saudi Arabia have been rooted in the centuries-old religious,
cultural, shared values, common faith and commercial links. Close historical trade ties, religious affinity
and economic support have created strong ties based on trust and mutual respect between the two
brotherly countries. Moreover, the relationship also gains strength from the shared Islamic ideals. Saudi
Arabia is also significant to Pakistan because it is the birth-place of Prophet Muhammad (PBUH) and home
to the two holiest sites of Islam; Makkah and Madina. Quran and Sunnah play a significant role in the
constitutional frameworks of both countries. Saudi Arabia is a religious destination for the Muslims in the
world as whole for performing religious rites like Ummrah and Hajj.
Early 1951, a Treaty of Friendship was signed by the two countries which laid the basis for cooperation. The
high-level delegation meetings and close relationship between leaders of Pakistan and Saudi Arabia reflect
the mutual friendship and trust between the countries. The successive leadership of Saudi Arabia has
visited Pakistan from time to time. King Saud bin Abdulaziz visited Pakistan in 1954, King Faisal bin
Abdulaziz in 1966 and 1974, and King Khalid bin Abdulaziz in 1976. Similarly, King Fahd bin Abdulaziz as
Crown Prince visited Pakistan in 1980 and King Abdullah visited Pakistan as Crown Prince in 1984, 1988,
1997 and 2003.
Pakistan's relationship with Saudi Arabia can be categorised in two eras, i.e., pre and post-1970. In the pre1970s era, Pakistan's relationship with Saudi Arabia was cordial, but after the 1970s, the relationship
between the two countries improved many-fold. This cooperation was evident during the Afghan Jihad in
the 1980s, and when Pakistan tested its nuclear weapons. Saudi Arabia provided Pakistan with large-scale
financial and material assistance during trying times when economic sanctions were imposed on the
country in the aftermath of the nuclear tests. Bilateral relations were buttressed over the coming decades
by a tradition of strong financial and strategic assistance extended to each other by the two brotherly
countries whenever required. Whenever a natural disaster or tragedy strikes Pakistan, Saudi Arabia is
always among the first countries to offer aid and help to Pakistan, as was seen in the 2005 earthquake and
the flood of 2010.
Pakistan and Saudi Arabia have maintained good relations since long in commercial and trade sectors.
Pakistani-Saudi yearly bilateral trade is approximately U.S. $3.3 billion. Major exports from Pakistan to
Saudi Arabia consist of rice, fresh cotton, yarn anecdote, fibre materials, clothes, woollens (hosiery),
completed ups, couch linen, dish towels, shelters mangos, art images, silk, artificial fabrics, leather
garments, furniture equipment, flooring, rugs, footwear, sports goods, medical goods, fish, fruits,
vegetables, flavours and spices, crusts and juices, etc. Pakistan imports its major necessities like petroleum
from Saudi Arabia.
Over the years, the two countries have also succeeded in developing a unique synergy for mutual
development. Saudi Arabia is home to the largest number of Pakistani expatriates, exceeding one and a
half million. Pakistani engineers, construction experts and labour have played a crucial role in building
infrastructure in modern Saudi Arabia. Similarly, Pakistani doctors, bankers, entrepreneurs, academics and
financial experts have played a premier role in developing institutional infrastructure of the Kingdom. In
the process, the Kingdom has provided employment to Pakistanis ranging from high-tech urban
professionals to unskilled labourers from the remotest parts of Pakistan. The large pool of Pakistani
professionals and skilled and unskilled manpower is a great asset for the Kingdom.
4
In 2013, when Prime Minister Mian Muhammad Nawaz Sharif came to power both the countries
exchanged bilateral visits and this witnessed a significant strengthening of bilateral relations between
Pakistan and Saudi Arabia. The two countries focused on their respective regional foreign policies and
strengthening of relations with neighbouring states. Giving due attention to the relations with countries of
its “near abroad” (Afghanistan, India, Iran, China, Turkey), Islamabad also placed emphasis on the
development of relations with the Gulf countries, giving special attention to the Kingdom of Saudi Arabia.
However, The unity of positions of the Muslim states on many international issues, following the example
of Pakistan and the Kingdom of Saudi Arabia, could potentially (given a combination of other factors) lead
to a paradigm shift in the vast region stretching from West Asia, the Gulf, North Africa; and to the formation
of a “true Islamic leadership” in the region.
5
Participants
The discussion was attended by renowned scholars, practitioners and members of the CPGS Team. The complete list
of participants is as follows:
Chair
Senator Sehar Kamran (T.I.)
Speakers
Ambassador (retd.) Khalid Mahmood
Air Commodore (retd.) Khalid Iqbal
Moderator
Mr. Nasir Hafeez.
Participants
Ambassador (retd.) Arif Kamal
Mr. Badar-Ol-Utabi
Ambassador (retd.) Rizwan-Ul-Haq.
Ambassador (retd.) Amir Shadani
Dr. Nazir Hussain
Dr. Bakar-e- Najamuddin
Mr. Altamash Wazir Khan
Ms. Sobia
Mr. Fawad Haider
Mr. Majid Mehmood
Mr. Basharat Hussain
Mr. Saif Khan
Ms. Heba Al Adawy
Mr. Tahir Mehmood
Mr. Ahmed Raza
Ms. Hafsa Razzaq
Mr. Usman Younus
Mr. Ghani Jafar
Ms. Adeela Bahar Khan
Ms. Ifrah Waqar
Mr. M. Suleman Shahid
Mr. M. Rizwan
Mr. Tahir Ahmad
Maj (retd.) Farrukh James
Mr. Almas Haider Naqvi
Mr. Faisal Raza Khan
*Various Research Scholars, HEC Scholars, M.Phil and PhD Students also attended the event.
6
Historical Relations Between Pakistan and Saudi Arabia
Pakistan and Saudi Arabia share deep historical ties which date back to centuries. It started in the Middle
Ages when the Arab traders were the main supply chain of silk, saffron, spices cotton and other goods
between the Subcontinent and Europe via the Silk Route and across the Arabian Sea. A Muslim-majority
state, Pakistan has sought to develop close bilateral ties with Saudi Arabia, the largest country on the
Arabian Peninsula and home to the two holiest cities of Islam, Makkah and Madina, and the destination of
Muslim pilgrims from across the world. After Pakistan's independence, Pakistan and Saudi Arabia had a
lukewarm relationship; it started warming up when King Faisal took over the throne. Since then, both the
countries have only grown closer; and the relationship is time-tested as both support each other during
conflicts/crises.
Saudi Arabia not only openly supported Pakistan during the 1971 war against India, but also strongly
opposed the creation of Bangladesh from Pakistan's eastern wing in 1971. Not only that, Saudi Arabia has
played a vital role in the post-1971 political, economic and psychological revival of Pakistani nation. In
addition to that, in the post-1971 environment, the 'common friends', including King Faisal, persuaded
Bangladesh to abandon the idea of trying Pakistani captives.
Pakistan and Saudi Arabia's relations improved rapidly in the decades of 1970s and 1980s; when bilateral
cooperation between the two increased many-fold. Saudi Arabia provided full financial and material
support to Pakistan during the Afghan war era and in the following years. Saudi Arabia and Pakistan are
leading members of the Organisation of Islamic Conference (OIC).
Saudi Arabia and Regional Conflicts
Saudi Arabia has a special clout in world and regional affairs, especially those regarding the Muslimmajority countries. It has generously contributed to the development of international institutions and the
promotion of interfaith harmony. However, regional developments occurring in its neighbouring countries
like Tunisia, Egypt, Syria, Iran, Iraq and Syria have affect Saudi Arabia.
The stabilising role of Saudi Arabia is sometimes overwhelmed or overtaken by political compulsions which
destabilise its relations with other countries. The country's relations with Iran have seen many highs and
lows particularly since the 1979 revolution. Relations between the two countries were much better before
the Islamic Revolution. However recently, Iranian and Saudi policies converge on various issues. They have
congruity in their policies over Iraq.
With the emergence of the-so called Islamic State of Syria and Iraq (ISIS), the situation in the region is in a
doldrums. Saudi Arabia does not welcome such happenings because the ISIS has the potential to threaten
the peace and security of Saudi Kingdom. Saudis have to play a leading role in tackling the IS in Iraq and
Syria. The air attacks on IS and Saudi-U.S.-Iran military nexus against ISIS would not be sufficient. This
problem has to be solved politically, in which Saudi has to play a leading role.
In the regional context, there are fissures among Arab countries over a number of issues; these include
the Arab Spring, the Libyan crisis and the situation in Syria and Iraq.
7
Pakistan's Nuclear Tests and Saudi Arabia
Since the 1960s, Saudi Arabia has been the only country from the Arab world that provides more aid to
Pakistan. In 1998, when Pakistan was debating the nuclear tests of five nuclear tests, the Saudis promised
50,000 barrels per day of free oil to help Pakistanis cope with the economic sanctions which were
threatened to be enforced if Pakistan did a counter test. The Saudi oil commitment and economic support
was one of the major factors that led the policy-makers in Pakistan to go ahead with nuclear testing.
Pakistan received a total amount of 1.5 billion dollars' worth of oil from Saudi Arabia from 1998 to 2002.
Economic and Trade Relations Between Pakistan and Saudi Arabia
Saudi Arabia is one of the biggest oil producing country in the world. The Kingdom has an estimated 16
percent of world's proved oil reserves. Due to its enormous market share in oil, Saudi Arabia plays an
important role in world economy. It is the first Muslim country to be on the list of twenty leading
economies of the world. According to the International Monitory Fund (IMF), Saudi Arabia is among
twenty-three best performing economies of the world.
Saudi economy is entirely dependent on oil. More than 80 percent of its export earnings come from oil
exports or oil goods. The world is seeking alternative source of energy; therefore, Saudi Arabia is looking to
diversify its economy. The Saudi shift towards Asia is associated with increasing exports to Asian countries.
Pakistan and Saudi Arabia have maintained good relations in commercial and trade sectors. The trade
volume between Pakistan and Saudi Arabia is $4 billion per year. The Kingdom of Saudi Arabia has 15
export partners in the world. Saudi Arabia imports many products from Pakistan. Major export from
Pakistan to Saudi Arabia consist of rice, fresh cotton, yarn anecdote, fibre materials, clothes, woollens
(hosiery), completed ups, couch linen, dish towels, shelters, mangos, art images, silk, artificial fabrics,
leather garments, furniture equipment, flooring, rugs, footwear, sports goods, medical goods, fish, fruits,
vegetables, flavours and spices, crusts and juices, etc. Pakistan imports its major necessities in the form of
Petroleum products from Saudi Arabia.
Saudi Arabia and Pakistani Expatriates
The Kingdom of Saudi Arabia hosts around 5.8 million expatriates; a preferred destination for workers.
Saudi Arabia became the largest export market of Pakistani workers around the world. Saudi Arabia is a
Muslim country, attractive to millions of Pakistani workers who seek their livelihood and a bright future in
the Holy Land and migrate in thousands every month, regardless of getting low salaries. Though Saudi
Arabia has a huge youth bulge, the youth of the country does not like to work in the social sector and bluecollar jobs. As a result, nine out of ten workers in the social sector are expatriates.
The remittances of overseas Pakistanis play a significant role in the economy of Pakistan. Therefore, overseas
Pakistanis remitted $1.65 billion in the first month of the current fiscal year, which is 17.45 per cent higher
than the amount ($1.4 billion) they remitted during the same month of 2013-14. Inflows from Saudi Arabia
have been the largest source of remittances so far in 2014-15. They amounted to $851.37 million in the first
two months of the current fiscal year. They are up 16.21 per cent from the same two months of 2013-14.
8
Pakistan and Saudi Arabia Military Relations
Pakistan military assistance to Saudi Arabia is not new, neither it is to the rest of the Arab world. Pakistan
maintains close military ties with Saudi Arabia, providing extensive training support for the Saudi military.
The Mutual Cooperation Programme between the Armed Forces of the two countries commenced in 1967;
in March 1979, Saudi authorities requested Pakistan for a military manpower assistance. Consequently, a
Protocol agreement with Saudi Arabia was signed on December 14, 1982, and Pakistani Armed Forces
personnel were sent on deputation to Saudi Arabia. Pakistani troops assisted Saudi Arabia in ending the
siege of Makkah in 1979. According to a 1991 Associated Press report, Pakistan deployed 13,000 troops
and 6,000 advisers in Saudi Arabia during the first Gulf War. During the 1990-1991 Gulf War, Pakistan sent
troops to protect Saudi Arabia.
The defence relations between Pakistan and Saudi Arabia have improved and flourished over time. The
recent visit of the Chief of Army Staff to Saudi Arabia and the meeting held with the high-ranking
officers of the armed forces of Saudi Arabia resulted in initiation of a joint military exercise that may
take place this year. In these meetings, the further points of discussion were defence and security
cooperation, regional stability and steps towards strengthening bonds between the two countries.
Saudi Arabia has been a regular buyer of Pakistani small arms in the past; now, it has expressed keen
interest in Pakistani's JF-17 Thunder jets.
Recommendations
The important factor to build on a relationship of friendship and tolerance is trust and continuing
interaction between people who share a common religion, cultural heritage and history. To further
strengthen the historical ties, it is very important to understand each other's fundamental interests. The
vital factors that could promote shared perceptions and enhance cooperation between these two states
are:
!
There is a need to build institutions for bilateral consultations, relationships and formulate
strategies for a robust bilateral relationship.
!
Promote joint investment between the two countries.
!
Pakistan need to maintain a neutral stance in Iran-Saudi relations and should not be involve itself in
any conflict between the two.
!
A student exchange programme/educational programmes should be initiated. It will cultivate the
new generation elites towards a more modern world through education.
!
Take a pro-active approach in promoting a grand rapprochement between Iran and Arab peninsula
in the Gulf region.
!
There is a need to engage in expertise with Saudi Arabia and to establish close linkages between
Pakistan and Saudi Arabia. There are Pakistani experts in Saudi Arabia and vice versa.
9
!
Both the countries should encourage people-to-people contacts, visits of delegations, the media
and civil society.
!
Pakistan should offer skilled workers to Saudi Arabia to increase remittances and meet Saudi
Arabia's advance economy.
!
The funding of the madrasas (religious schools) from the private findings of Saudi Arabia needs to
be monitored.
!
Both Pakistan and Saudi Arabia should further improve their economic and commercial ties.
Conclusion
Pakistan and Saudi Arabia enjoy close relations which are marked by common perceptions on all issues of
mutual interest. Both countries have sought to develop extensive commercial, cultural, religious and
strategic relations. The Saudi Kingdom has a longstanding and intimate relationship with Pakistan. They
have faced common enemies in the past successfully and face a common enemy today in al-Qaeda.
Understanding the Pakistani-Saudi relationship is important to understanding the future of both countries.
The rapidly changing geo-political and geo-strategic scenarios in the region and the Middle East demand
increased levels of mutual cooperation and collaboration at all levels. Apart from cordial activities, there
are frequent exchanges of visits of the leadership of both the countries. There are some areas which are
important to improve such relations. Both the states have close ties, but their cooperation does not
commensurate with their commercial ties. Both Pakistan and Saudi Arabia need to bolster their
cooperation at all levels.
10
CPGS Vision
Innovate future prospects for peace and security in the region and beyond through intellectual discourse and
contribute in sustainable social, political and economic development.
About the Centre
The Centre for Pakistan and Gulf Studies (CPGS) is a non-partisan platform established to undertake studies in policy
research, advocacy and consultancy to enhance understanding and relations in diverse fields between Pakistan and
the Gulf countries. We regularly conduct seminars, workshops, roundtables and conferences with dignitaries,
academics and experts from every walk of life, in order to actively promote regional harmony, global peace, security
and stability by making substantive intellectual, academic and diplomatic contributions. The Centre aims to harness
the immense potential for increasing cooperation in the region to attain peace, security and economic development
and to assess emerging trends in regional policies and devise strategies for possible future challenges.
Operational Framework & Objectives
!
!
!
!
!
!
!
!
Promote regional peace and harmony through integrated and comprehensive understanding of issues
between peoples, governments and other entities;
Strengthen strategic, political, economic and social cooperation among countries of the region and beyond;
Present view point of Pakistan and the Gulf countries to the rest of the world through academic
engagements, discussion and dialogue among all stakeholders for sustainable development;
Identify opportunities and areas of common interest for potential cooperation between Pakistan and the
countries of the Gulf region at all levels including both public and private sector;
Contribute towards development of ideological and social ideas to promote tolerance and co-existence for
building multicultural human society based on shared ideas and common goals;
Conduct Research and compile reports for the governments and private entities to explore alternative
options for efficient management and resolution of regional and international issues;
Organize workshops and events to develop strong working relationship between academia and
practitioners;
Collaborate with the other research institutions and Think Tanks for achieving the core objectives.
Activities and Services
!
!
!
!
!
!
!
Organize periodic seminars, workshops, lectures and other events which would bring together leaders,
academics, practitioners and other stakeholders, to study and discuss issues of importance for the overall
good of the society;
Map out future policy options by analyzing existing trends and emerging scenarios;
Compile, edit and publish (print and electronic) relevant information, data, commentaries and analysis
regularly;
Offer training and academic services for Skill Development and Strategic analysis;
Provide dedicated Consultancy and help create conducive environment for development of our society;
All such other activities which help in achieving core objectives of the Centre and its programs, projects and
initiatives;
Prepare annual report of all activities for interested parties and stakeholders.
11
About KAS
Freedom, justice and solidarity are the basic principles underlying the work of the Konrad-Adenauer-Stiftung (KAS).
The KAS is a political foundation, closely associated with the CDU party. As co-founder ofthe CDU and the first
Chancellor of the Federal Republic of Germany, Konrad Adenauer (1876-1967)united social, conservative and liberal
traditions. His name is synonomous with the democraticreconstruction of Germany, the firm alignment of foreign
policy with the trans-Atlantic community ofvalues, the vision of a unified Europe and an orientation towards the
social market economy. Hisintellectual heritage continues to serve both as our aim as well as our obligation today.
In our european and international cooperation efforts we work for people to be able to live self determined lives in
freedom and dignity. We make a contribution underpinned by values to helping Germany meet its growing
responsibilities throughout the world.
We encourage people to lend a hand in shaping the future along these lines. With more than 70 offices abroad and
projects in over 120 countries, we make a unique contribution to the promotion of democracy, the rule of law and a
social market economy. To foster peace and freedom we encourage a continuous dialog at the national and
international levels as well as the exchange between cultures and religions.
Human beings in their distinctive dignity and with their rights and responsibilities are at the heart of our work. We
are guided by the conviction that human beings are the starting point in the effort to bring about social justice and
democratic freedom while promoting sustainable economic activity. By bringing people together who embrace their
responsibilities in society, we develop active networks in the political and economic spheres as well as in society
itself. The guidance we provide on the basis of our political know-how and knowledge helps to shape the
globalization process along more socially equitable, ecologically sustainable and economically efficient lines.
We cooperate with governmental institutions, political parties, civil society organizations and handpicked elites,
building strong partnerships along the way. In particular we seek to intensify political cooperation in the area of
development cooperation at the national and international levels on the foundations of our objectives and values.
Together with our partners we make a contribution to the creation of an international order that enables every
country to develop in freedom and under its own responsibility.
In 2008 the Konrad-Adenauer-Stiftung opened an office in Pakistan. In the field of international cooperation we
support the G8 Afghanistan-Pakistan Initiative, the general exchange of the Pakistani and Afghan Civil Society, and
the strengthening of rule of law. Moreover, we intend to assist in the development of an economic system that takes
into consideration social justice and concern for the environment. The KAS sponsors conferences, seminars and
publications of its partners and conducts its own programmes.
12

Download Report