Despite defence pact with Pakistan, India remains Saudi's key trade partner

Saudi-Pakistan defence pact underlines Islamabad's reliance on Riyadh, while India's ties rest on larger trade and diversified remittances

On 17 September, Saudi Arabia and Pakistan signed a “Strategic Mutual Defence Agreement” during Prime Minister Shehbaz Sharif’s visit to Riyadh, formalising their security ties. Riyadh clarified that the pact does not affect its strong relationship with India. Economically, Saudi Arabia is vital to both countries—but in different ways: Pakistan shows concentrated reliance, while India benefits from scale and diversification. 

 

Saudi Arabia’s share in Pakistan’s imports nearly doubled in a span of five years to 8.9 per cent in 2023, showing growing reliance. India’s share is smaller, but in absolute terms trade is far larger. Saudi is India’s fourth-largest trading