So What you need to do if you want a Machine Readable Passport from Pakistan Embassy in Riyadh?

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It is easy and it is well organized at the Embassy of Pakistan in Riyadh. Here are few points to note if you wish to replace your current passport with a Machine Readable Passport (MRP). 
Please note that now number of countries would not issue you a visa unless you have a MRP so do not wait and get it replaced now. Remember it is not mandatory that you can only replace at the time of renewal. You can replace even if you have couple of years valid on your current passport.

Documents Required that you need to take along.
1) Your current passport
2) Applicant NADRA National Identity Card
3) Photo copy of applicant NADRA NIC
4) Photo copy of applicant current passport. Only first 3 pages
5) A copy of applicant valid Iqama
You do not need to take photographs.
There is no form to fill, there is no other document to take along.
TIP: When you plan to visit, better get your family passports replaced as well. It would save you a trip later :)
What to do?
1) You would need to get a reference / appointment number from the embassy counter which is on the entrance of council services section. Normally there is a queue to follow if you reach at the embassy. Embassy opens at 8am but recommended time to reach to embassy is around 7am so you get an early appointment. At the counter you need to tell the clerk that you need an appointment with MRP office. They issue different tickets for different services.
TIP: If you go with your family then other patriots show the decency of letting them be the first to get the appointment.

2) Once you get the appointment ticket, wait in the hall till your number is called. Normally they would call a group of 30. Once your number or range of numbers is called, you will be required to go to MRP office and sit there till...
3) A clerk on a computer calls your number. You take your documents to him. He will verify all your documents, ask you couple of basic questions to confirm your identity. You will pay a fee (Regular delivery time 1 month SAR:115) for the passport which is more if you need to get an urgent passport. Once you have paid, he will give you a receipt which will have the date of delivery on it. Make sure to check it. He will return you all your original documents i.e. passport and ID
TIP: Regular fee passport will take a month to arrive whereas urgent passport is delivered in 10 days time.
4) Wait for your name to be called for photo session. Once your name is called, visit the photo taking area. An operator will take your picture.
TIP: make sure you go well dressed to have a good picture on your passport :)
5) Your name will be called again to sign on an application. The clerk will ask you to wait.
6) Your name will be again called by the section officer who will ask you few basic questions.
That's about it. The whole process would not take more than 15 minutes.

Make sure that you keep the receipt safely stored as you would need to present the receipt to receive your new passport.
TIP: Once you get your new passport, you would need to take your old passport with you again. Embassy will stamp "Cancel" on each page of the old passport. Make sure that they don't stamp any page that carries a valid visa.