Business Desk 
Jan 08, 2026
Pakistan and Saudi Arabia are in close talks to convert about $2 billion (approximately Rs560,150,000,000) of loans into a JF-17 fighter jet deal, with an aim at deepening military cooperation.
According to sources, the talks underscore how the two allies are moving to operationalise defence cooperation at a time when Pakistan is facing acute financial strain and Saudi Arabia is reshaping its security partnerships to hedge against uncertainty about United States (US) commitments in the Middle East.
One of the sources stated that 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.
It should be noted that the JF-17's market value has increased as "it is tested and has been used in combat," a retired Air Marshal and analyst Aamir Masood 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 neighbours in decades.
Earlier on Tuesday, Minister of Defence for Pakistan Khawaja Muhammad Asif said the success of its weapons industry could transform the country's economic outlook.
In an interview with Geo News, the defence minister stated: "Our aircraft have been tested, and we are receiving so many orders that Pakistan may not need the International Monetary Fund (IMF) in six months."
One 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.
However, the sources close to the military with knowledge of the matter spoke on condition of anonymity, while they were not authorised to speak on the deal.
