Pakistan Says No Military Response Discussed Under Makkah Pact Over Houthi Attacks on Saudi Arabia
Pakistan’s foreign ministry confirmed that no immediate military action is being planned under the newly‑signed Makkah defence pact, though it pledged to act when required, keeping regional tension high.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Geopolitical tension from the Makkah pact and Houthi attacks raises risk for Oil & Gas and overall market sentiment, so avoid buying related stocks.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- Oil & GasNegatively affected
- MarketsNegatively affected
Companies
Companies Mentioned
- ISL· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Oil & Gas, Markets — Negative · Do not buy. PSX tickers: ISL. Geopolitical tension from the Makkah pact and Houthi attacks raises risk for Oil & Gas and overall market sentiment, so avoid buying related stocks.
Full Story
Open on Business Recorder## Background
The Makkah Joint Defence Agreement, signed on August 7 by Pakistan, Saudi Arabia and Türkiye, is a defensive alliance that treats an armed attack on any member as an attack on all, similar to NATO’s Article 5. The pact includes provisions for joint exercises, defence information sharing and industry collaboration, and a permanent secretariat will be based in Saudi Arabia with Pakistan providing the first secretary‑general for three years.
## Recent Developments
At a weekly media briefing, Foreign Office Spokesperson Sajjad Haider Khan said there is currently no discussion in Islamabad about a military response to the recent Houthi strikes on Saudi cities and energy infrastructure. He added, “When the time comes, we will act under the agreement,” indicating that the pact remains dormant for now.
## Regional Context
The statement came after Iran‑backed Houthi militants intensified attacks on Saudi oil facilities, creating a second theatre of war in the Middle East. Pakistan has warned Iran to restrain its Yemeni proxies and condemned the attacks, while also continuing its role as a mediator between the United States and Iran.
## Official Stance
Defence Minister Khawaja Muhammad Asif reiterated that the Makkah pact would become operational if the Yemen conflict spilled over into Saudi Arabia, emphasizing Pakistan’s commitment to collective defence rather than aggression. He stressed that the agreement is purely defensive and aimed at regional stability.
## Market Implications
The ongoing geopolitical tension and the uncertainty surrounding the activation of the defence pact keep oil markets volatile and maintain heightened risk perception for the Pakistani rupee and equity market. Investors should monitor developments closely, as any escalation could affect oil‑related stocks and overall market sentiment.