The defense deal was signed following Israel’s attacks on what it said were Hamas targets in Doha.
Saudi Crown Prince Mohammed bin Salman and Pakistan Prime Minister Shehbaz Sharif meet in Riyadh, Saudi Arabia, September 17, 2025. Saudi Press Agency/Handout via REUTERS THIS IMAGE HAS BEEN PROVIDED BY A THIRD PARTY
Pakistan and Saudi Arabia are in talks to convert about $2 billion of Saudi loans into a deal for a JF-17 fighter jet, 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 faces acute financial strain and Saudi Arabia is reshaping its security partnerships to guard against uncertainty over U.S. commitments in the Middle East.
The mutual defense agreement was signed following Israel’s attacks on what it said were Hamas targets in Doha, an attack that shook the Gulf region.
One of the sources said 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 main option among others under discussion.
The first source said the total deal was worth $4 billion, and that an additional $2 billion would be spent on equipment in addition to 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.
Pakistan’s air chief Zaheer Ahmed Baber Sidhu was in Saudi Arabia for bilateral talks, including “military cooperation between the two sides,” Saudi media outlet SaudiNews50 said on social media platform X on Monday.
Aamir Masood, an analyst and retired air marshal, said Pakistan was in talks or had struck deals with six countries to provide equipment, including JF-17 and electronic and weapons systems for the aircraft. He said those countries included Saudi Arabia, but could not confirm any details about the negotiations.
The JF-17’s marketability has increased because “it is proven and has been used in combat,” he said. Reutersadding that it is also profitable. Pakistan has said the plane was deployed during its conflict with India in May last year, the heaviest fighting between neighbors in decades.
Pakistan’s military, finance and defense ministries did not immediately respond to requests for comment. The Saudi Arabian government media office also did not respond.
The mutual defense pact, signed in September, committed both sides to treating 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 financially support Pakistan during periods of economic stress.
In 2018, Riyadh announced a $6 billion support package for Pakistan, including a $3 billion deposit in the central bank and $3 billion in oil supplies with deferred payment.
Saudi Arabia has since renewed its deposits several times, including a $1.2 billion deferral last year, helping Islamabad stabilize its foreign reserves amid chronic pressures on its balance of payments.
In recent months, Pakistan has stepped up its defense activities as it seeks to expand arms exports and monetize its domestic defense industry.
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Last month, Islamabad reached an arms deal worth more than $4 billion with the Libyan National Army, based in eastern Libya, officials said, one of the country’s largest ever arms sales, including JF-17 fighter jets and training aircraft.
Pakistan has also held talks with Bangladesh over the possible sale of JF-17, as it expands its weapons supply ambitions beyond South Asia and the Middle East.
On Tuesday, Pakistan’s defense minister said the success of its arms industry could transform the country’s economic prospects.
“Our planes have been tested and we are receiving so many orders that Pakistan may not need the International Monetary Fund within six months,” Khawaja Asif told broadcaster Geo News.
Pakistan is currently under a $7 billion IMF program, its 24th, which followed a $3 billion short-term deal that helped avoid a sovereign default in 2023. It gained support from the Fund after Saudi Arabia and other Gulf allies provided financial and deposit rollovers.
