Pakistan, Saudi Arabia in talks to swap loans for JF-17 jets

Pakistan and Saudi Arabia are discussing a proposal that would convert around $2 billion in Saudi loans to Pakistan into a deal for JF-17 fighter jets, Reuters reported, citing two Pakistani sources familiar with the matter.

If concluded, the arrangement would mark a major expansion of military ties between the two countries after they signed a mutual defence agreement.

The talks highlight efforts by both allies to turn their defence pact into concrete cooperation at a time when Pakistan is under financial pressure and Saudi Arabia is reassessing its security partnerships amid uncertainty over long-term US involvement in the Middle East.

The defence agreement was signed after Israeli strikes on what Israel described as Hamas targets in Doha, an incident that unsettled the wider Gulf region and heightened security concerns among regional states.

Quoting the sources, the report said that the current discussions are focused solely on the supply of JF-17 Thunder fighter jets. It said that the aircraft is the main option being considered, although other possibilities are also on the table.

The report said that the overall value of the proposed deal could reach $4 billion. This would include the conversion of $2 billion in loans, along with an additional $2 billion for related military equipment beyond the aircraft themselves.

Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu recently visited Saudi Arabia for bilateral engagements. Saudi media outlet SaudiNews50 reported on social media platform X that the talks included discussions on “military cooperation between the two sides”.