Pakistan and Saudi Arabia are in talks to convert approximately $2 billion of Saudi loans into a deal for JF-17 Thunder fighter jets, according to two Pakistani sources, marking a significant step toward deepening military cooperation between the two allies.
The discussions come months after the two countries signed a mutual defence pact and highlight efforts to operationalise defence cooperation at a time when Pakistan is grappling with severe financial constraints, while Saudi Arabia is recalibrating its security partnerships amid uncertainty over long-term US commitments in the region.
One source said the talks are primarily focused on the supply of JF-17 fighter jets, the light combat aircraft jointly developed by Pakistan and China and manufactured domestically. Another source said the jets are the main option among several defence items under consideration.
According to one of the sources, the proposed agreement could be valued at $4 billion, including the conversion of $2 billion in loans and an additional $2 billion for equipment and related systems. The sources, who have close knowledge of military affairs, spoke on condition of anonymity as they were not authorised to comment publicly.
Pakistan Air Chief Zaheer Ahmed Baber Sidhu recently visited Saudi Arabia for bilateral discussions, including talks on military cooperation, according to Saudi media outlet SaudiNews50.
Retired Air Marshal and defence analyst Aamir Masood said Pakistan has either finalised or is negotiating defence deals with at least six countries involving aircraft, electronic warfare systems, and weapons platforms, including the JF-17. While he confirmed Saudi Arabia was among the countries involved, he declined to comment on specifics.
He noted that the JF-17’s appeal has grown due to its combat-tested performance and cost-effectiveness. Pakistan has previously stated that the aircraft was deployed during its conflict with India in May last year, the most intense fighting between the two rivals in decades.
Neither Pakistan’s military nor its finance and defence ministries responded to requests for comment. Saudi Arabia’s government media office also did not issue a response.
Defence Pact and Financial Support
The mutual defence pact signed in September commits both countries to treat aggression against either as an attack on both, significantly strengthening a long-standing security partnership.
Pakistan has historically provided military training and advisory support to Saudi Arabia, while the kingdom has repeatedly extended financial assistance to Islamabad during periods of economic distress.
In 2018, Saudi Arabia announced a $6 billion support package for Pakistan, including a $3 billion central bank deposit and $3 billion in oil supplies on deferred payment. Riyadh has since rolled over deposits multiple times, including a $1.2 billion deferment last year, helping Pakistan stabilise its foreign exchange reserves.
Pakistan Expands Arms Export Drive
Pakistan has recently stepped up its defence diplomacy as it seeks to expand arms exports and monetise its domestic defence industry.
Last month, Islamabad signed a more than $4 billion weapons deal with Libya’s eastern-based Libyan National Army, one of the largest arms exports in Pakistan’s history, involving JF-17 jets and training aircraft. Pakistan has also held discussions with Bangladesh over the potential sale of JF-17s.
On Tuesday, Defence Minister Khawaja Asif said the growing success of Pakistan’s weapons industry could significantly improve the country’s economic outlook.
“Our aircraft have been tested, and we are receiving so many orders that Pakistan may not need the International Monetary Fund in six months,” he told Geo News.
Pakistan is currently operating under a $7 billion IMF programme, secured after financial support and deposit rollovers from Saudi Arabia and other Gulf allies helped avert a sovereign default in 2023.