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BeNewz report
ISLAMABAD: Pakistan and Saudi Arabia are engaged in advanced discussions to convert approximately $2 billion in existing Saudi loans into a major deal for Pakistan’s JF-17 Thunder fighter jets, according to two well-placed Pakistani sources familiar with the matter.
The potential agreement, which one source valued at up to $4 billion including additional equipment, comes just months after the two countries signed a landmark mutual defence pact in September 2025. The pact commits both nations to treat any act of aggression against one as an attack on both, marking a significant deepening of their long-standing security ties, said Reuters in an exclusive report.
The sources, speaking on condition of anonymity due to the sensitivity of the negotiations, said the talks centre primarily on the JF-17 – a lightweight, multi-role combat aircraft jointly developed by Pakistan and China and manufactured at the Pakistan Aeronautical Complex. One source indicated the jets are the main focus, while the other noted they are the leading option among several possibilities.
This development highlights growing military cooperation at a time when Pakistan faces severe economic challenges and Saudi Arabia seeks to diversify its security partnerships amid regional uncertainties, including concerns over long-term U.S. commitments in the Middle East.
The discussions gained momentum following a recent visit by Pakistan Air Force Chief Marshal Zaheer Ahmed Baber Sidhu to Riyadh, where bilateral military cooperation was reportedly on the agenda.
Defence analysts note that the JF-17’s appeal has been bolstered by its combat-proven performance – including its reported use during Pakistan’s aerial clashes with India in May 2025 – and its cost-effectiveness compared to Western alternatives.
Pakistan has aggressively pursued defence exports as part of a broader strategy to strengthen its economy and reduce reliance on international bailouts. Recent successes include a multi-billion-dollar arms package with Libya and ongoing talks with Bangladesh for JF-17 sales.
Defence Minister Khawaja Asif recently claimed that surging demand for Pakistani defence products, including aircraft, could significantly improve the country’s financial position, potentially reducing the need for future IMF support.
Neither Pakistan’s defence or finance ministries nor Saudi authorities have officially commented on the reported negotiations.
The potential deal underscores the enduring strategic alliance between Islamabad and Riyadh, where Saudi financial assistance – including repeated rollover of deposits and loans – has repeatedly helped Pakistan avert balance-of-payments crises, while Pakistan has long provided military training and advisory support to the Kingdom.
