The JF-17, jointly developed with China and produced in Pakistan, has gained export interest after being tested in combat. The talks also reflect Pakistan’s broader push to expand arms exports and monetise its domestic defence industry.
| Photo Credit:
SAIYNA BASHIR/Reuters
Pakistan and Saudi Arabia are in
talks to convert about $2 billion of Saudi loans into a JF-17
fighter jet deal, two Pakistani sources said, deepening military
cooperation months after the two nations signed a mutual defence
pact last year.
The talks underscore how the two allies are moving to
operationalise defence cooperation at a time when Pakistan is
facing acute financial strain and Saudi Arabia is reshaping its
security partnerships to hedge against uncertainty about U.S.
commitments in the Middle East.
The mutual defence deal was signed following Israel’s strikes on
what it said were Hamas targets in Doha, an attack that shook
the Gulf region.
One of the sources said the discussions were limited to the
provision of JF-17 Thunder fighter jets, the light combat
aircraft jointly developed by Pakistan and China and produced in
Pakistan, while the second said the jets were the primary option
among others under discussion.
The first source said the total deal was worth $4 billion, with
an additional $2 billion to be spent on equipment over and above
the loan conversion. The sources close to the military with
knowledge of the matter spoke on condition of anonymity because
they were not authorized to speak on the deal.
Pakistan’s Air Chief Zaheer Ahmed Baber Sidhu was in Saudi
Arabia for bilateral talks including on “military cooperation
between the two sides”, Saudi media outlet SaudiNews50 said on
social media platform X on Monday.
TESTED IN COMBAT
Amir Masood, a retired Air Marshall and analyst, said
Pakistan was in talks about or had finalised deals with six
countries to provide equipment including JF-17s and electronic
systems and weapons systems for the jets. He said those
countries included Saudi Arabia, but could not confirm any
details about the negotiations.
The JF-17s marketability has been increased because “it is
tested and has been used in combat,” he told Reuters, adding
that it’s also cost effective. Pakistan has said the aircraft
was deployed during its conflict with India in May last year,
the heaviest fighting between the neighbours in decades.
Pakistan’s military and finance and defence ministries and
military did not immediately respond to requests for comment.
Saudi Arabia’s government media office also did not respond.
The mutual defence pact, signed in September, committed both
sides to treat any aggression against either country as an
attack on both, significantly deepening a decades-old security
partnership.
Pakistan has long provided military support to the kingdom,
including training and advisory deployments, while Saudi Arabia
has repeatedly stepped in to support Pakistan financially during
periods of economic stress.
In 2018, Riyadh announced a $6 billion support package for
Pakistan, including a $3 billion deposit at the central bank and
$3 billion worth of oil supplies on deferred payment.
Saudi Arabia has since rolled over deposits multiple times,
including a $1.2 billion deferment last year, helping Islamabad
stabilise its foreign exchange reserves amid chronic
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.
Published on January 7, 2026
