Pakistan and Saudi Arabia are reportedly negotiating the conversion of approximately $2 billion in Saudi loans into a potential deal for JF-17 fighter jets, according to two Pakistani sources cited by Reuters. The discussions mark a significant step in operationalizing defence cooperation between the allies, just months after signing a mutual defence pact last year.
The proposed arrangement underscores the convergence of Pakistan’s financial needs with Saudi Arabia’s efforts to diversify and strengthen its security partnerships amid uncertainty over U.S. commitments in the Middle East. The two countries’ mutual defence agreement, signed in September, obliges both sides to treat any aggression against either nation as an attack on both, reflecting a substantial deepening of a decades-old security relationship.
One source told Reuters that the talks are focused on JF-17 Thunder fighter jets, jointly developed by Pakistan and China and manufactured in Pakistan. A second source indicated that the jets are the primary option among several under consideration. The total deal is said to be valued at $4 billion, including an additional $2 billion for equipment beyond the loan conversion. The sources, close to military circles, spoke on condition of anonymity due to the sensitive nature of the discussions.
Pakistan’s Air Chief, Zaheer Ahmed Baber Sidhu, recently visited Saudi Arabia for bilateral discussions that included military cooperation, according to the Saudi media outlet SaudiNews50. Retired Air Marshal Amir Masood told Reuters that Pakistan has engaged with six countries on potential deals for fighter jets and related equipment, highlighting the combat-tested JF-17’s cost-effectiveness and operational reliability, including its deployment during May’s conflict with India, the heaviest fighting between the neighbours in decades.
Pakistan’s military and government officials, as well as Saudi Arabia’s media office, did not immediately respond to requests for comment.
The talks come as Pakistan continues to seek opportunities to expand its domestic defence industry into international markets. Last month, Islamabad reportedly secured a weapons deal exceeding $4 billion with Libya’s eastern-based Libyan National Army, which includes JF-17 fighter jets and training aircraft. Pakistan has also engaged Bangladesh in discussions over potential JF-17 sales, signaling its ambition to broaden arms exports beyond South Asia and the Middle East.
Pakistan’s defence minister, Khawaja Asif, emphasized the economic potential of the country’s weapons industry, telling broadcaster Geo News, “Our aircraft have been tested, and we are receiving so many orders that Pakistan may not need the International Monetary Fund in six months.” Currently, Pakistan operates under a $7 billion IMF programme, following a $3 billion short-term deal in 2023 that helped avert a sovereign default with support from Saudi Arabia and other Gulf allies.
This prospective JF-17 deal represents both a strategic and economic pivot for Pakistan, converting financial assistance into tangible military assets while reinforcing a partnership that has historically included Saudi financial support and military collaboration.
