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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 speaking to Reuters said, deepening military cooperation months after the two nations signed a mutual defense pact last year.
The talks underscore how the two allies are moving to operationalize defense 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 defense 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. Sources close to the military with knowledge of the matter spoke on condition of anonymity because they were not authorized to discuss the deal.
Aamir Masood, a retired Air Marshal and analyst, speaking to Reuters, stated that Pakistan was in talks about or had finalized deals with six countries to provide equipment, including JF-17s, electronic systems, and weapons systems for the jets.
Masood said those countries included Saudi Arabia, but could not confirm any details about the negotiations. "The JF-17's 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 neighbors in decades.
The mutual defense 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 Riyadh, 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 in oil supplies on deferred payment terms.
Saudi Arabia has since rolled over deposits multiple times, including a $1.2 billion deferment last year, helping Islamabad stabilize its foreign exchange reserves amid chronic balance-of-payments pressures.
Pakistan has in recent months stepped up defense outreach as it seeks to expand arms exports and monetize its domestic defense 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 about the possible sale of JF-17s, as it widens its ambitions for arms supplies beyond South Asia and the Middle East.
On Tuesday, Pakistan's defense 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 program, 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.
Jointly developed by the Pakistan Aeronautical Complex (PAC) and the Chengdu Aircraft Corporation (CAC), the JF-17 is a single-engine multi-role combat aircraft that first flew in 2003. Known as the Thunder in service with Pakistan and as the FC-1 Xiaolong (Fierce Dragon) by China.
Claimed by Pakistan to cost half the price of the F-16 and can carry a variety of modern air-to-air and air-to-ground weapons. In addition to Pakistan, the Thunder has also been acquired by the air forces of Myanmar, Nigeria and Azerbaijan.
The type has been continually upgraded since the introduction of the JF-17A, and the current Block III version, the JF-17C, features a modern radar, new avionics, and a more powerful engine. Deliveries of the JF-17A to the Pakistan Air Force began in 2007, and in total 112 A examples have been delivered in addition to 26 Block II JF-17Bs.
These aircraft now form the backbone of the Pakistan Air Force's fast jet fleet and have seen combat use on numerous occasions. The first of 27 of the more advanced JF-17C was delivered during 2023 and Pakistan intends to upgrade all existing JF-17A and B variants to the same specification.
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