RIYADH : According to two Pakistani sources, discussions are underway to turn part of Saudi financial support into a military procurement agreement, with the JF-17 Thunder fighter jet emerging as the primary option. The light combat aircraft is jointly developed by Pakistan and China and manufactured in Pakistan. One source said the proposed deal could be worth up to $4 billion in total, including an additional $2 billion for equipment beyond the loan conversion.
The talks come months after Pakistan and Saudi Arabia signed a mutual defence pact in September, committing both sides to treat any aggression against either country as an attack on both. The agreement was signed against the backdrop of heightened regional tensions following Israeli strikes on Hamas-linked targets in Doha, an incident that unsettled the Gulf region.
Pakistan’s Air Chief, Zaheer Ahmed Baber Sidhu, was in Saudi Arabia this week, where he met his counterpart Lieutenant General Turki bin Bander bin Abdulaziz to discuss bilateral defence cooperation, the regional security environment and future avenues for collaboration, according to a Pakistani military statement.
Aamir Masood, a retired Air Marshal and defence analyst, said Pakistan is in talks with or has finalised defence export deals with six countries involving JF-17s, electronic systems and weapons packages. He noted that Saudi Arabia is among the countries engaged in discussions, though he could not confirm specific details. Masood said the aircraft’s appeal has grown because it is combat-tested and cost-effective, adding that Pakistan deployed the jets during its conflict with India in May last year, the most intense fighting between the neighbours in decades.
The potential deal also highlights the long-standing security and financial ties between the two countries. Pakistan has for decades provided military training and advisory support to the kingdom, while Saudi Arabia has repeatedly stepped in to support Pakistan during periods of economic stress. In 2018, Riyadh announced a $6 billion support package, including a $3 billion central bank deposit and $3 billion worth of oil supplies on deferred payment. These deposits have since been rolled over multiple times, including a $1.2 billion deferment last year, helping Pakistan stabilise its foreign exchange reserves.
The defence talks come as Pakistan accelerates efforts 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, one of its largest-ever arms sales, which includes JF-17 fighter jets and training aircraft. Pakistan has also held discussions with Bangladesh on a possible JF-17 sale.
Pakistan’s defence minister has said the growing success of the country’s weapons industry could help transform its economic outlook. The push comes as Pakistan operates under a $7 billion programme with the International Monetary Fund, its 24th such arrangement, which followed a short-term $3 billion deal that helped avert a sovereign default in 2023.