Pakistan, Saudi Arabia Discuss Converting Loans into JF-17 Fighter Jet Deal: Reuters

Pakistan and Saudi Arabia are negotiating to convert $2 billion in loans into a military deal, potentially including JF-17 fighter jets, sources said.

Pakistan and Saudi Arabia are holding talks to convert around $2 billion of Saudi loans into a military deal involving JF-17 fighter jets, sources told Reuters on Wednesday.

The discussions, aim to deepen defense cooperation between the two countries and come months after Islamabad and Riyadh signed a mutual defense pact.

Report stated that the deal could be worth up to $4 billion, with $2 billion from loan conversion and an additional $2 billion allocated for military equipment purchases.

The JF-17 is a lightweight multirole combat aircraft jointly developed by Pakistan and China and manufactured domestically in Pakistan. It has become a key component of Islamabad’s air force modernization efforts.

Pakistan has historically relied on Saudi financial support during economic crises, with Riyadh providing loans and deposits to stabilize the country’s foreign reserves. Saudi Arabia is also seeking to redefine its security partnerships in the region amid shifting geopolitical dynamics.

These military talks follow the September signing of a mutual defense agreement between Islamabad and Riyadh, under which any aggression against one nation is considered an attack on both.

Analysts say the proposed deal would strengthen defense ties, provide Islamabad with critical military assets amid economic challenges, and signal Riyadh’s intent to bolster strategic partnerships across South Asia.

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