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Pakistan trades troops for Saudi cash: What's inside the $10 billion defence-for-money pact?

Signed on September 17 in Riyadh by Prime Minister Shehbaz Sharif and Crown Prince Mohammed bin Salman, the pact declares that “any aggression against either country shall be considered an aggression against both.”

October 24, 2025 / 20:15 IST
A handout picture provided by the Saudi Press Agency (SPA) on September 17, 2025, shows Saudi Arabia's Crown Prince Mohammed bin Salman (R) welcoming Pakistan's Prime Minister Shehbaz Sharif ahead of their meeting in Riyadh. (Photo by SPA / AFP)

Pakistan’s worsening economic crisis has pushed it into what many analysts are calling a “security-for-money” deal with Saudi Arabia. Under the newly signed Strategic Mutual Defence Agreement, Islamabad has agreed to deploy around 25,000 soldiers to the kingdom in return for a $10 billion Saudi investment package.

Signed on September 17 in Riyadh by Prime Minister Shehbaz Sharif and Crown Prince Mohammed bin Salman, the pact declares that “any aggression against either country shall be considered an aggression against both.” However, the agreement’s full text remains undisclosed, and conflicting statements from Pakistani officials have only deepened the confusion over what exactly Islamabad has signed up for.

Pakistan sends 25,000 troops to guard Saudi Arabia

According to CNN-News18, the agreement involves the deployment of four army brigades made up of armour, artillery, infantry, and rocket units, along with two air force squadrons and two naval fleets. The troops will be spread across Saudi Arabia and commanded by a lieutenant general, assisted by two major generals and eight brigadiers.

These personnel will take part in joint operations, training, and exercises with the Saudi armed forces. Pakistan will also assist Riyadh in setting up air defence and rocket command structures, signalling a deep integration of Pakistani forces into Saudi military planning.

Critics argue that this marks a troubling precedent, where Pakistan is effectively renting out its military in exchange for economic lifelines.

China’s shadow over the deal

Another significant element of the pact is the transfer of Chinese-made military technology to Saudi Arabia, facilitated by Pakistan. The kingdom reportedly seeks JF-17 and J-10 fighter jets, with plans to collaborate on developing a fifth-generation combat aircraft to counter potential threats from Israel.

This triangulation between Saudi Arabia, Pakistan, and China is being closely watched by Western and regional observers. It signals a growing military alignment that could challenge US influence in the Gulf. For Pakistan, it further underscores its increasing dependence on Beijing, not only for weapons but also for geopolitical leverage.

Cash in exchange for military might

In return for its military services, Pakistan will receive $10 billion in Saudi investments across infrastructure, energy, mining, and security sectors. The financial package aims to stabilise Pakistan’s struggling economy, which continues to suffer from debt, inflation, and dwindling foreign reserves.

Saudi Arabia also plans to triple bilateral trade from $5 billion to $15 billion and assist Islamabad diplomatically with countries like Afghanistan and India. However, such promises come with strings attached. By placing its soldiers under foreign command, Pakistan risks both its military autonomy and its credibility as a sovereign state.

A costly bargain for Pakistan

While Pakistan’s government has framed the agreement as “mutual defence cooperation,” analysts see it as a sign of desperation. With its economy in free fall, Islamabad appears willing to outsource its military in exchange for cash infusions.

The arrangement may temporarily ease Pakistan’s financial pain, but it also entrenches its status as a client state, dependent on the goodwill of foreign powers to survive. For a country that once prided itself on being a regional military power, the deal with Riyadh looks less like a partnership, and more like a transaction of necessity.

Moneycontrol World Desk
first published: Oct 24, 2025 08:15 pm

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