 "Pakistan, Saudi Arabia in talks to convert $2 bn loans into JF-17 fighter jet deal: Report")
Pakistan and Saudi Arabia are in talks to convert about $2 billion in Saudi loans into a deal for JF-17 fighter jets, according to a Reuters report, citing two Pakistani sources said, marking a deepening of military cooperation months after the two countries signed a mutual defence pact.
The discussions come as Pakistan grapples with severe financial pressure, while Saudi Arabia is recalibrating its security partnerships amid uncertainty over long-term US commitments in the Middle East. The talks also reflect efforts by both sides to operationalise their defence agreement signed last year.
That pact was concluded after Israel carried out strikes on what it described as Hamas targets in Doha, an escalation that unsettled the wider Gulf region.
According to the report, citing one of the sources, the negotiations were focused on the supply of JF-17 Thunder fighter jets, the light combat aircraft jointly developed by Pakistan and China and manufactured in Pakistan.
The second source said the JF-17s were the primary option among several possibilities being discussed.
According to the first source, the overall deal could be worth $4 billion, with an additional $2 billion earmarked for equipment beyond the proposed loan conversion.
Pakistan Air Force Chief Zaheer Ahmed Baber Sidhu was in Saudi Arabia for bilateral discussions, including talks on “military cooperation between the two sides,” Saudi media outlet SaudiNews50 posted on X on Monday.
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Amir Masood, a retired air marshal and defence analyst, said Pakistan was either in talks or had finalised defence deals with six countries to supply equipment including JF-17 fighter jets, electronic systems and weapons for the aircraft. He said Saudi Arabia was among those countries, but declined to confirm specific details of the negotiations.
The JF-17’s market appeal has grown because “it is tested and has been used in combat,” Masood told Reuters, adding that the aircraft is also cost-effective.
Pakistan has said the jet was deployed during its conflict with India in May last year, the most intense fighting between the neighbours in decades.
The mutual defence pact signed in September commits both countries to treat any aggression against one as an attack on both, significantly strengthening their long-standing security partnership.
Pakistan has historically provided military support to Saudi Arabia through training and advisory roles, while the kingdom has repeatedly extended financial assistance to Islamabad during periods of economic stress.
In 2018, Saudi Arabia announced a $6 billion support package for Pakistan, comprising a $3 billion deposit at the central bank and $3 billion worth of oil supplies on deferred payment. Riyadh has since rolled over the deposits several times, including a $1.2 billion deferment last year, helping Pakistan stabilise its foreign exchange reserves amid persistent balance-of-payments pressures.
Arms sales outreach
Pakistan has in recent months stepped up defence outreach as it seeks to expand arms exports and monetise its domestic defence industry.
Last month, Islamabad struck a weapons deal worth more than $4 billion with Libya’s eastern-based Libyan National Army, officials said, one of the country’s largest-ever arms sales, which includes JF-17 fighter jets and training aircraft.
Pakistan has also held talks with Bangladesh on the possible sale of JF-17s, as it widens its arms supply ambitions beyond South Asia and the Middle East.
On Tuesday, Pakistan’s defence minister said the success of its weapons industry could transform 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,” Khawaja Asif told broadcaster Geo News.
Pakistan is currently under a $7 billion IMF programme, its 24th, which followed a short-term $3 billion deal that helped avert a sovereign default in 2023. It secured the Fund’s support after Saudi Arabia and other Gulf allies provided financial and deposit rollovers.
With inputs from agencies
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