Pakistan and Saudi Arabia are currently negotiating a major defence deal. Sources indicate the two nations may convert approximately $2 billion in existing Saudi loans into a purchase of JF-17 Thunder fighter jets. This move aims to deepen military cooperation and alleviate Pakistan’s financial burdens.
The Deal: Jets for Loan
Two sources close to the military revealed the financial structure of the proposed agreement. The total value could reach $4 billion.
- Loan Conversion: Saudi Arabia would convert $2 billion of its previous loans to Pakistan into payment for the jets.
- New Spending: The Kingdom would spend an additional $2 billion on equipment beyond the loan adjustment.
According to Reuters, one source noted that the talks focus specifically on the JF-17 Thunder, a light combat aircraft jointly developed by Pakistan and China. A second source confirmed these jets are the primary option under discussion.
Strategic Timing & Defence Pacts
This negotiation follows a landmark mutual defence pact signed in September 2025. The two allies agreed to treat aggression against either nation as an attack on both. This pact emerged after Israeli strikes on Hamas targets in Doha shook the Gulf region.
Consequently, Saudi Arabia is reshaping its security partnerships. The Kingdom seeks to hedge against uncertainty regarding U.S. commitments in the Middle East. Meanwhile, Pakistan’s Air Chief, Zaheer Ahmed Baber Sidhu, recently visited Saudi Arabia. Saudi media confirmed his visit focused on “military cooperation between the two sides”.
JF-17 Thunder: Combat Proven & Economically Vital
The JF-17 has gained global attention due to its performance. Analyst Amir Masood, a retired Air Marshall, highlighted that the jet is “tested in combat”. Pakistan deployed the aircraft during heavy fighting with India in May 2025. Masood stated that Pakistan is in talks with six countries regarding the JF-17 and related electronic systems.
This deal comes at a critical time for Pakistan’s economy. The country is currently under a $7 billion IMF program. However, defence exports could change the outlook.
- Libya Deal: Last month, Islamabad struck a $4 billion weapons deal with the Libyan National Army.
- Bangladesh Talks: Pakistan is also discussing JF-17 sales with Bangladesh.
Defence Minister Khawaja Asif recently expressed high confidence in the sector. He told a local media outlet:
Our aircraft have been tested, and we are receiving so many orders that Pakistan may not need the International Monetary Fund in six months.
