Pakistan says Saudi defense pact covers ‘comprehensive spectrum’ of cooperation

Saudi Arabia’s Crown Prince Mohammed bin Salman (second right), Pakistan’s Prime Minister Shehbaz Sharif (second left), Saudi Arabia’s Defense Minister Khalid bin Salman (left) and Pakistan’s Army Chief Field Marshal Asim Munir, pose for a group photo after signing a mutual defense pact, in Riyadh, Saudi Arabia, on September 17, 2025. (PMO/File)
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Updated 23 September 2025
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Pakistan says Saudi defense pact covers ‘comprehensive spectrum’ of cooperation

  • The accord was signed in Riyadh last week during PM Sharif’s visit, formalizing decades-old defense ties
  • Musadiq Malik stresses the agreement is purely defensive, modeled on NATO-style collective security

ISLAMABAD: Pakistan’s newly signed security pact with Saudi Arabia is a NATO-style agreement covering a “comprehensive spectrum” of defense cooperation, Musadiq Malik, a federal minister and Islamabad’s focal person for relations with the Kingdom, said this week, stressing the arrangement was purely defensive in nature.

The two countries signed the Strategic Mutual Defense Agreement (SMDA) in Riyadh on Sept. 18, cementing decades-old defense ties into a formal pact. The deal, signed during Prime Minister Shehbaz Sharif’s visit to Saudi Arabia, stipulated that aggression against one country would be treated as an attack on both.

The joint statement issued after the signing of the pact stressed that the accord was aimed at developing aspects of defense cooperation between the two countries and strengthening joint deterrence against any aggression.

“I think it’s a very comprehensive agreement, and in that we have diffusion of technology, we have training of the forces, we have intelligence sharing, we have preparatory work in terms of joint exercises and a commitment that an attack on one country would be deemed as an attack on both the countries,” Malik told Arab News in an exclusive interview on Monday.

Asked if the full spectrum of Pakistan’s military power, including nuclear deterrence, will be available to Saudi Arabia, he said no one had asked that question of the United States and France in relation to their similar agreements with England and Portugal.

“It’s nothing that people need to be worried about,” he continued. “It’s to make sure that our security, our joint security, our collective security gets strengthened. And that’s all we’ve done.”

“What is the full spectrum,” he added rhetorically. “The full spectrum is the comprehensive spectrum, that we would strengthen each other, and if anyone attacks either one of us, it would be deemed as an attack on both.”

Malik, who was part of the prime minister’s delegation during the signing of the agreement, said the accord would soon be implemented with technological cooperation, training of security forces and joint exercises.

Asked what Pakistan hoped to get out of the agreement, the minister simply said the pact reflected the sentiments of its people, who have always been willing to defend the two holy cities of Makkah and Madinah.

“What was implicit has become explicit,” he explained. “The people of Pakistan always wanted to lay down their lives while defending the two holy mosques. This pact reflects those sentiments.” 


Pakistan stocks close at record high over current account surplus, falling bond yields

Updated 18 December 2025
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Pakistan stocks close at record high over current account surplus, falling bond yields

  • KSE-100 index gains 1,646.79 points or 0.97% to close at new high of 171,960.64 points
  • Pakistan’s central bank posted a current account surplus of $100 million in November

KARACHI: Pakistani stocks closed at an all-time high of 171,960.4 points on Thursday, with financial analysts attributing the surge to increasing investor confidence stemming from a current account surplus reported in November and a drop in government bond yields.

The benchmark KSE-100 index gained 1,646.79 points or 0.97% to close at an all-time high of 171,960.64 points on Thursday. The previous day, Pakistani stocks surged to 170,313.85 points at close of business. 

Ahsan Mehanti, chief executive officer at Arif Habib Commodities, said the optimistic mood at the stock exchange was fueled by the $100 million current account surplus reported by the central bank in November.

“Speculations ahead of year-end close and fall in government bond yields up to 70 basis points after the SBP (State Bank of Pakistan) policy easing played the catalyst role in bullish activity at PSX,” Mehanti told Arab News. 

The surplus was a welcome development for Islamabad as Pakistan’s central bank reported a $291 million deficit in October.

Topline Securities, a Pakistani brokerage firm, said in its daily market review that strong buying by local funds followed a drop in Pakistan Investment Bond (PIB) yields, which boosted investor confidence.

PIB yields are the returns on bonds or government-backed securities that pay fixed semi-annual interest, with rates influenced by market demand and SBP auctions.

“Strength in ENGRO (Engro Corporation), FFC (Fauji Fertilizer Company), UBL (United Bank Limited), LUCK (Lucky Cement) and BAHL (Bank AL Habib) underpinned positive momentum, collectively contributing 1,504 points to the index,” the brokerage firm wrote on X. 

“This upside was partly offset by declines in PIOC (Pakistan International Oil Company), DHPL (D.H. Corporation Limited) and MLCF (Millat Tractor Limited), which together subtracted 176 points.”

The sustained rise in equities comes amid improving liquidity conditions and continued investor participation, with market participants focusing on corporate earnings, sector-specific developments and broader macroeconomic signals.

Earlier on Monday, Pakistan’s central bank cut its key policy interest rate by 50 basis points to 10.5%, a move that surprised analysts and followed four consecutive policy meetings where rates were held unchanged.

The cut came despite an International Monetary Fund staff report earlier this month cautioning against premature monetary easing.

Inflation eased to 6.1% in November, remaining within the SBP’s target band, though analysts have warned that price pressures could resurface later in the fiscal year as base effects fade and food and transport costs remain volatile.