Pakistan and Saudi Arabia are in discussions to convert around $2 billion of Saudi loans into a deal for JF-17 fighter jets, two Pakistani sources familiar with the matter have said, signalling a move to activate defence cooperation agreed upon between the two countries last year.
The talks are taking place as Pakistan faces financial pressure and Saudi Arabia reassesses its regional security arrangements amid uncertainty over long-term US involvement in the Middle East. The discussions fall under the framework of the mutual defence pact signed by the two countries in September.
One source said the talks are limited to the provision of JF-17 Thunder fighter jets, while another said the aircraft are the primary option among others being considered. The JF-17 is jointly developed by Pakistan and China and is produced in Pakistan.
According to the sources, the proposed agreement could be valued at $4 billion, with $2 billion linked to the conversion of loans and an additional $2 billion allocated for defence equipment. The sources spoke on condition of anonymity as they were not authorised to speak publicly on the matter.
Air Chief Marshal Zaheer Ahmed Baber Sidhu recently visited Saudi Arabia for bilateral meetings that included discussions on “military cooperation between the two sides”.
Amir Masood, a retired air marshal and defence analyst, said that Pakistan was either in talks or had finalised defence-related agreements with six countries involving JF-17 aircraft, electronic systems, and weapons packages. He said Saudi Arabia was among those countries but did not confirm details of the negotiations.
He said the aircraft’s export prospects had improved following its operational deployment, adding that it was cost efficient. Pakistan has previously said the JF-17 was deployed during the conflict with India in May last year.
Pakistan’s military, along with the finance and defence ministries, did not respond to requests for comment. Saudi Arabia’s government media office also did not respond.
Under the defence pact signed in September, both countries agreed to treat any aggression against one as aggression against both. Pakistan has long provided military training and advisory support to Saudi Arabia, while Riyadh has provided financial assistance to Islamabad during periods of economic stress.
In 2018, Saudi Arabia announced a $6 billion support package for Pakistan, including a $3 billion deposit at the central bank and $3 billion worth of oil supplies on deferred payment. Saudi Arabia has rolled over deposits multiple times since then, including a $1.2 billion deferment last year.
Pakistan has recently stepped up efforts to expand defence exports. Last month, officials said Islamabad signed a weapons deal valued at over $4 billion with Libya’s eastern-based Libyan National Army, which includes JF-17 aircraft and training platforms. Pakistan has also held talks with Bangladesh on the possible sale of JF-17 jets.