Pakistan and Saudi Arabia are holding talks to convert about $2 billion in Saudi loans into a deal for JF-17 Thunder fighter jets, according to two Pakistani sources. The move would further strengthen military cooperation between the two allies, months after they signed a mutual defence pact.
The discussions reflect both sides’ efforts to operationalise defence ties at a sensitive moment. Pakistan faces significant financial pressure, while Saudi Arabia is reassessing its security partnerships amid uncertainty over long-term U.S. commitments in the region.
Reuters reported that the mutual defence agreement was signed last year after Israeli strikes on targets in Doha heightened tensions across the Gulf. Under the pact, both countries agreed to treat any aggression against one as an attack on both.
Sources said the current talks focus mainly on the supply of JF-17 Thunder jets. The aircraft is jointly developed by Pakistan and China and produced domestically by Pakistan’s defence industry. One source said the overall deal could be worth around $4 billion, including an additional $2 billion for equipment beyond the loan conversion. Both sources spoke on condition of anonymity due to the sensitivity of the discussions.
Pakistan Air Force Chief Zaheer Ahmed Baber Sidhu recently visited Saudi Arabia for bilateral meetings, including discussions on military cooperation, according to Saudi media outlet SaudiNews50.
Tested Fighter Jet Gains Interest
Retired Air Marshal Aamir Masood said Pakistan is either negotiating or has finalised defence deals with six countries for aircraft, electronic systems, and weapons, including the JF-17. He said Saudi Arabia was among the countries involved but declined to confirm details.
“The JF-17 has strong market appeal because it has been tested and used in combat,” Masood said, adding that it remains cost-effective compared to rival platforms. Pakistan has previously said it deployed the aircraft during clashes with India in May last year, marking the heaviest fighting between the neighbours in decades.
Read: Pakistan’s JF-17 Thunder Steals Spotlight at Dubai Airshow 2025
Pakistan’s military, defence ministry, and finance ministry did not respond to requests for comment. Saudi Arabia’s government media office also did not issue a response.
Pakistan has long supported the kingdom through military training and advisory roles. Saudi Arabia has also provided repeated financial assistance during Pakistan’s economic crises.
In 2018, Riyadh announced a $6 billion support package for Pakistan. This included a $3 billion deposit at the central bank and $3 billion in oil supplies on deferred payment. Saudi Arabia has since rolled over deposits several times, including a $1.2 billion deferment last year, helping Islamabad manage foreign exchange pressures.
Pakistan Expands Arms Export Push
Pakistan has stepped up defence outreach as it seeks to expand arms exports and monetise its domestic defence industry. Last month, Islamabad signed a weapons deal worth more than $4 billion with Libya’s eastern-based forces. Officials said the agreement includes JF-17 fighter jets and training aircraft.
Pakistan has also held talks with Bangladesh over a possible JF-17 sale, signalling broader ambitions beyond South Asia and the Middle East.
On Tuesday, Defence Minister Khawaja Asif said the success of Pakistan’s weapons industry could reshape the country’s economic outlook. Speaking to Geo News, he said rising defence exports could reduce Pakistan’s reliance on external bailouts.
Pakistan is currently under its 24th International Monetary Fund programme, a $7 billion programme, following a short-term $3 billion deal in 2023 that helped avert a sovereign default. Support from Saudi Arabia and other Gulf allies was instrumental in securing the programme.
