Saudi Arabia and Pakistan are engaged in advanced negotiations regarding a significant defense arrangement that would convert approximately $2 billion in Saudi loans into a procurement agreement for JF-17 Thunder fighter jets, according to a Reuters report. This potential arms deal, valued at up to $4 billion total, represents a strategic deepening of military cooperation between the two longstanding allies.
The discussions occur against a complex geopolitical backdrop featuring Saudi Arabia’s intensified military operations against UAE-backed forces in Yemen and Pakistan’s concerted efforts to expand its arms exports to Arab nations. The two countries formalized their defense partnership with a mutual security pact last year, strengthening their existing alliance.
This proposed arrangement would see Saudi Arabia acquire the JF-17 combat aircraft, jointly manufactured by Pakistan and China, with an additional $2 billion potentially allocated for supplementary military equipment beyond the loan conversion framework. The negotiation highlights the symbiotic nature of the Riyadh-Islamabad relationship: Saudi Arabia provides crucial financial support to Pakistan’s economy, while Pakistan offers military expertise and hardware to the Gulf monarchy.
Financial assistance from oil-rich Saudi Arabia has proven vital to Pakistan’s economic stability over the past decade. In 2018, Riyadh extended a $6 billion assistance package comprising $3 billion in central bank deposits and $3 billion in deferred oil payments. Saudi Arabia has consistently rolled over these deposits, providing Pakistan with essential dollar liquidity to mitigate current account pressures.
In return, Saudi Arabia benefits from Pakistan’s professional military establishment, with Pakistani advisors historically contributing to Saudi defense capabilities and many Saudi pilots receiving training in Pakistan. The current negotiations reflect both nations’ responses to regional security dynamics, including Pakistan’s recent $4 billion arms agreement with Libya’s National Army and Saudi Arabia’s ongoing military campaign in Yemen.
The potential deal may generate concern in Washington, where officials are simultaneously negotiating F-35 sales to Saudi Arabia. Members of the U.S. intelligence community have previously expressed apprehension about technology transfer issues involving Chinese-made military equipment in sensitive regions.