The defense deal was signed after Israel attacked what it said were Hamas targets in Doha
Saudi Arabia’s Crown Prince Mohammed bin Salman and Pakistan’s Prime Minister Shehbaz Sharif meet in Riyadh, Saudi Arabia, September 17, 2025. Saudi Press Agency/Handout via REUTERS THIS PHOTO IS PROVIDED BY A THIRD PARTY
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 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 US commitments in the Middle East.
The mutual defense agreement was signed after Israel attacked 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 delivery of JF-17 Thunder fighters, the light combat aircraft jointly developed by Pakistan and China and produced in Pakistan, while the other 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 in addition to 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 comment on the deal.
Pakistan 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.
Aamir Masood, a retired air marshal and analyst, said Pakistan was negotiating or had finalized deals with six countries to supply equipment, including JF-17s and electronic and weapons systems for the jets. He said those countries included Saudi Arabia, but could not confirm any details of the talks.
The JF-17’s marketability has been increased because “it has been tested and has been used in combat,” he said Reutersadding that it is also cost effective. Pakistan has said the plane was deployed during its conflict with India last May, the fiercest fighting between the neighbors in decades.
Pakistan’s military, finance and defense ministries did not immediately respond to requests for comment. Saudi Arabia’s government media office also did not respond.
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 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 aid package for Pakistan, including a $3 billion deposit in the central bank and $3 billion in deferred payment oil supplies.
Saudi Arabia has since rolled over deposits several times, including a $1.2 billion reprieve last year, helping Islamabad stabilize its foreign reserves amid chronic balance-of-payments pressures.
Pakistan has stepped up its defense reach in recent months as it seeks to expand arms exports and monetize its domestic defense industry.
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Last month, Islamabad inked an arms deal worth more than $4 billion with Libya’s east-based Libyan National Army, officials said, one of the country’s biggest ever arms sales, which includes JF-17 fighter jets and trainers.
Pakistan has also held talks with Bangladesh over the possible sale of JF-17s as it expands its arms supply ambitions beyond South Asia and the Middle East.
On Tuesday, Pakistan’s defense minister said the success of its arms industry could change 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 Geo News television.
Pakistan is currently under a $7 billion IMF program, its 24th, which followed a short-term $3 billion deal that helped stave off a sovereign default in 2023. It secured the fund’s support after Saudi Arabia and other Gulf allies provided financial and deposit transfers.
