Pakistan, Saudi in talks on JF-17 jets-for-loans deal, sources say

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. The sources close to the military with knowledge of the matter spoke on condition of anonymity because they were not authorized to speak on the deal.

Pakistan's 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 X/Twitter on Monday.

Amir Masood, a retired Air Marshall and analyst, said Pakistan was in talks about or had finalized deals with six countries to provide equipment including JF-17s and electronic systems and weapons systems for the jets. He said those countries included Saudi Arabia, but could not confirm any details about the negotiations.

The JF-17s 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.

Pakistan's military and finance and defense ministries and military 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 support package for Pakistan, including a $3 billion deposit at the central bank and $3 billion worth of oil supplies on deferred payment.

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 monetise 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 on the possible sale of JF-17s, as it widens its arms supply ambitions 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.

The air force chiefs of Pakistan and Bangladesh held talks on a potential pact covering the sale of JF-17 Thunder fighter jets to Dhaka, Pakistan's military said, as Islamabad widens its arms supply ambitions and beefs up ties with Bangladesh.

The talks in Islamabad come as Pakistan looks to capitalize on the success of its air force in the conflict with arch-foe India in May last year, the worst fighting in nearly three decades between the nuclear-armed neighbors.

Sidhu and Bangladesh counterpart Hasan Mahmood Khan had detailed talks on procurement of the JF-17 Thunder, a multi-role combat aircraft jointly developed with China, the military's press wing said.

Pakistan has also assured Bangladesh of the "fast-tracked delivery of Super Mushshak trainer aircraft, along with a complete training and long-term support ecosystem," it added in Tuesday's statement.

The talks signal improving ties as the South Asian nations have grown closer since massive protests in August 2024 drove then-Prime Minister Sheikh Hasina to flee to India, shattering Dhaka's relationship with New Delhi.

"The visit underscored the strong historical ties between Pakistan and Bangladesh and reflected a shared resolve to deepen defense cooperation and build a long-term strategic partnership," the military said.

In the wake of Hasina's ouster, Islamabad and Dhaka have resumed direct trade for the first time since the 1971 war that brought independence for Bangladesh, while their military officials have held several meetings.

Under an interim administration led by Nobel laureate Muhammad Yunus, Bangladesh is set for general elections on February 12 that could lead to a significant government role for a once-banned Bangladeshi Islamist party with links to Pakistan.

The JF-17s have become the cornerstone of the Pakistani military's weapons development program, figuring in a deal with Azerbaijan and a $4-billion weapons pact with the Libyan National Army.

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.