From Geopolitics to Geo-Economics: Dynamics, Constraints and Potentials in Saudi Arabia-Pakistan Relations

Abstract

This study examines the post-2008 shift from geopolitics to geo-economics in Kingdom of Saudi Arabia (KSA) and Pakistan relations, analyzing its dynamics, constraints and potentials through the lens of neoliberalism. Historically; rooted in religious, cultural and strategic affinities, the bilateral relationship has increasingly prioritized economic interdependence, driven by neoliberal principles of free markets, privatization and global integration. Utilizing qualitative analysis of foreign policy documents, economic agreements and financial indicators, the research highlights key trends i.e. expanding trade volumes, Saudi investments in Pakistan’s energy and infrastructure sectors (e.g., Gwadar, Reko Diq mining) and labor migration sustaining vital remittance flows. However, challenges persist, including Pakistan’s trade deficit and debt with KSA, geopolitical complexities and balancing neutrality in regional conflicts. The study identifies opportunities for Pakistan in aligning Saudi Vision 2030 with KSA’s economic diversification goals, particularly in IT, tourism, trade and agriculture. Findings underscore the interplay of economic and strategic imperatives, revealing that while geo-economic reorientation fosters mutual growth, it also necessitates navigating geopolitical aspects. The paper concludes that sustained optimum cooperation requires - leveraging economic potentials, prioritizing geo-economics, mediating regional disputes and enhancing cultural diplomacy - to uphold the partnership’s potential amid evolving global and regional dynamics.

Keywords: Pakistan, KSA, Neoliberalism, Geo-Economics, Challenges, Opportunities