Amid escalating West Asia tensions, Pakistan faces a dual crisis—economic fragility and strategic vulnerability. Reliance on Gulf aid and internal structural weaknesses threaten both national stability and citizens’ livelihoods.

Amid the escalating conflict in West Asia, Pakistan’s Prime Minister, Shehbaz Sharif, visited Saudi Arabia in early March 2026 on an official invitation from Crown Prince Mohammed bin Salman. The visit came months after Pakistan and Saudi Arabia signed a Strategic Mutual Defence Agreement in September 2025, under which both countries pledged to treat any aggression against one as aggression against both. The agreement has gained renewed significance amid rising regional tensions, particularly following multiple drone and missile strikes by Iran targeting Gulf states. Saudi Arabia, in particular, has faced direct attacks on both military and civilian infrastructure, including key oil facilities such as the Ras Tanura refinery, prompting Riyadh to strengthen its air defenses and condemn the strikes as violations of international law.

Pakistan’s engagement with Saudi Arabia was expected to focus primarily on regional security coordination and strategic cooperation. However, despite the gravity of the security situation, Pakistan’s leadership prioritized pressing for economic support and financial assistance from Riyadh—highlighting Islamabad’s acute reliance on Gulf aid and energy support. This approach underscores the structural fragility of Pakistan’s economy, which remains heavily dependent on external financing from the United States, China, and Gulf countries. Pakistan’s economic vulnerability increasingly shapes its foreign policy, compelling its leadership to prioritize financial survival even amid serious regional security crises.

Securitizing the remittances

In pursuit of immediate financial relief, Pakistan reportedly submitted eight economic cooperation requests to Saudi Arabia. These included converting $5 billion in Saudi deposits into a ten-year long-term facility to secure stable financing, expanding Saudi deferred oil credit from approximately $1.2 billion to $5 billion with extended repayment terms, and proposals to securitize nearly $10 billion in remittances sent by Pakistani workers abroad. Other requests encompassed investment initiatives, bank guarantees,........

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