Pakistan and Saudi Arabia are in discussions to convert nearly $2 billion in Saudi loans into a defence deal involving JF-17 fighter jets, according to two Pakistani sources. The talks signal a deeper military partnership between the two longtime allies. This possible Pakistan Saudi defence deal comes at a critical time. Pakistan is struggling with serious financial pressure, while Saudi Arabia is adjusting its security alliances amid uncertainty over long-term US commitments in the Middle East.
Sources familiar with the matter said the discussions mainly focus on the JF-17 Thunder aircraft, a light combat jet jointly developed by Pakistan and China and manufactured in Pakistan. One source said the aircraft is the primary option under consideration, while other defence equipment is also being discussed.
According to one source, the total value of the proposed Pakistan Saudi defence deal could reach $4 billion, including an additional $2 billion for equipment beyond the loan conversion. The sources spoke anonymously due to the sensitive nature of the talks.
Pakistan Air Force Chief Air Chief Marshal Zaheer Ahmed Baber Sidhu recently visited Saudi Arabia for bilateral meetings. A Saudi media outlet reported that the discussions included broader Pakistan Saudi military cooperation.
Retired Air Marshal and defence analyst Aamir Masood said Pakistan is either negotiating or has finalised defence equipment deals with six countries. These include fighter jets, electronic systems, and weapons for the JF-17 Thunder aircraft. He confirmed Saudi Arabia was among these countries but did not share details.
Experts say the JF-17’s appeal has grown because it has been tested in real combat and remains affordable compared to Western aircraft. Pakistan previously stated that the jet was deployed during clashes with India in May last year, marking the most intense fighting between the two neighbours in decades.
Pakistan has recently stepped up efforts to expand its defence exports. Last month, it signed a $4 billion weapons deal with Libya’s eastern-based Libyan National Army, including JF-17 jets and training aircraft.
Islamabad has also held talks with Bangladesh over the possible sale of JF-17s as it looks to expand arms exports beyond South Asia and the Middle East.
Pakistan’s Defence Minister Khawaja Asif said the growing success of the country’s weapons industry could change Pakistan’s economic outlook.