Pakistan and Saudi Arabia are holding discussions to convert nearly $2 billion in Saudi loans into a defence deal involving JF-17 Thunder fighter jets.
If finalized, the move would mark an important step in strengthening military and strategic cooperation between the two countries.
According to sources familiar with the matter, the talks are linked to a mutual defence pact signed by Pakistan and Saudi Arabia last year.
The discussions come at a time when Pakistan is under financial pressure and is exploring alternative ways to manage its external obligations. At the same time, Saudi Arabia is reviewing its regional security needs and defence partnerships.
The JF-17 Thunder fighter jet is at the center of the proposed deal. The aircraft is jointly developed by Pakistan and China and is manufactured in Pakistan.
It is seen as a cost-effective and reliable fighter jet, making it attractive for countries looking to modernize their air forces without extremely high costs.
Sources indicate that while the initial focus is on converting around $2 billion in loans, the total value of the defence deal could eventually reach up to $4 billion.
This would include aircraft, training, maintenance, and possible future cooperation in defence production.
So far, officials from both Pakistan and Saudi Arabia have not publicly confirmed the negotiations.
However, defence analysts believe such a deal would support Pakistan’s broader goal of expanding its defence exports and reducing reliance on traditional financial assistance.
If completed, the agreement could help ease Pakistan’s financial burden while also deepening long-term defence ties with Saudi Arabia. It would also strengthen Pakistan’s position as a growing exporter in the global defence market.