Petrodollars and Pakistan’s Nuclear Pact: The Saudi Connection Explained

The Origins of a Strategic Bond In May 1998, just weeks after India conducted nuclear tests near its border, Pakistan’s then–Prime Minister Nawaz Sharif turned to Saudi Arabia. He asked Crown Prince Abdullah bin Abdulaziz whether Riyadh would support Pakistan if it responded with its own nuclear test. The answer came swiftly: after Pakistan’s nuclear detonation, Saudi Arabia supplied 50,000 barrels of free oil daily, helping Islamabad withstand the wave of Western sanctions. This moment strengthened a partnership rooted in shared faith, mutual security concerns, and decades of Saudi financial backing. From Petrodollars to Nuclear Ambitions Since the 1960s, Saudi Arabia has been one of Pakistan’s biggest financial supporters outside the Arab world. According to Brookings, this aid spanned from direct financial assistance to funding schools, mosques, and charities. Military historians argue that this steady flow of petrodollars indirectly sustained Pakistan’s nuclear programme during years of sanctions. Brigadier General (R) Feroz Khan, in his book Eating Grass: The Making of the Pakistani Bomb, wrote that Saudi support “enabled the programme to continue when Pakistan was under Western pressure.” The ‘Islamic Bomb’ and Military Ties When Pakistan tested its bomb in 1998, many in the Muslim world hailed it as the “Islamic bomb.” Pakistan, in turn, renamed a city after King Faisal to honor Saudi Arabia’s role. Over the years, Pakistani troops have guarded Saudi borders, ISI funneled Saudi and US funds to Afghan fighters in the 1980s, and Pakistani officers have trained Saudi forces. Today, Pakistani military experts still serve as advisers in Riyadh, and a former Pakistani army chief leads a Saudi-led counterterrorism coalition. The New Defence Pact of 2025 Fast forward to September 2025: Prime Minister Shehbaz Sharif and Army Chief Asim Munir travelled to Riyadh to sign a mutual defence pact with Saudi Arabia. The agreement was vague in details but symbolically powerful. Analysts say it represents Riyadh’s response to shifting regional dynamics: an unpredictable US, a resurgent Israel, and an embattled Iran. Joshua White of Brookings noted, “This pact isn’t just about today’s events, it’s about building long-term options as the region undergoes tectonic shifts.” Risks and Opportunities For Pakistan, the deal comes with both opportunities and risks: Opportunities: Strengthened ties with a wealthy ally. Greater regional influence as a nuclear power. Enhanced defence cooperation and training roles. Risks: Straining relations with the US and Israel, who already view Pakistan’s nuclear program with suspicion. Complicating ties with India, which may use this pact to build stronger military cooperation with Israel. Potential for new sanctions on Pakistan’s missile programme. What Lies Ahead For Riyadh, the pact sends a clear message: Saudi Arabia has options beyond the US. For Islamabad, it is both a lifeline and a gamble. Balancing relationships with Saudi Arabia, China, the US, and Iran will require careful diplomacy. As Rabia Akhtar, director of Lahore University’s security think-tank, put it: “This pact symbolizes a Muslim-majority nuclear power standing beside Saudi Arabia.” While officials deny any formal nuclear umbrella, the strategic ambiguity serves its purpose: deterrence. Whether this alliance stabilizes the region or fuels new tensions will depend on how carefully both sides navigate the fallout.