Pakistan and Saudi Arabia are in talks to convert around $2 billion of Saudi loans into a deal for JF-17 Thunder fighter jets, according to two Pakistani sources, signaling a major step in deepening defence cooperation between the two allies.
The discussions come months after both countries signed a mutual defence pact and at a time when Pakistan is facing severe financial pressure, while Saudi Arabia is recalibrating its security partnerships amid regional uncertainty.
Sources said the talks are primarily focused on the supply of JF-17 fighter jets, jointly developed by Pakistan and China and manufactured in Pakistan. One source said the total deal could be worth up to $4 billion, including an additional $2 billion for equipment beyond the loan conversion. The sources spoke on condition of anonymity as they were not authorised to comment publicly.
Pakistan Air Chief Marshal Zaheer Ahmed Baber Sidhu recently visited Saudi Arabia for bilateral talks on military cooperation, according to Saudi media reports.
Defence analyst and retired Air Marshal Aamir Masood said Pakistan is either in talks or has finalised defence export deals with several countries, including Saudi Arabia, citing the JF-17’s combat-tested capability and cost effectiveness. Pakistan has previously stated that the aircraft was deployed during last year’s conflict with India.
Neither Pakistan’s military and finance ministries nor Saudi Arabia’s government media office issued immediate comments on the reported talks.
The mutual defence pact signed in September commits both countries to treat aggression against one as an attack on both, significantly strengthening their longstanding security ties. Saudi Arabia has also repeatedly provided financial support to Pakistan, including loan rollovers and oil facilities, to help stabilise its economy.
In recent months, Pakistan has intensified efforts to expand arms exports, securing multi-billion-dollar defence deals and holding talks with several countries for the sale of JF-17 jets, as Islamabad looks to boost its domestic defence industry and ease economic pressures.