In a strategic pivot that could reshape the defence landscape of the Middle East and South Asia, Pakistan and Saudi Arabia are in advanced negotiations to convert $2 billion of existing Saudi loans into a major acquisition of JF-17 Thunder fighter jets.
According to sources close to the military, the discussions involve a total package valued at approximately $4 billion. Under the proposed framework, half of the deal would be financed by rolling over current Saudi deposits at Pakistan’s central bank, while the remaining $2 billion would cover additional equipment, spare parts, and specialized weaponry.
A New Chapter in the Strategic Mutual Defense Agreement
The talks represent the first major “operationalization” of the Strategic Mutual Defense Agreement (SMDA) signed by Crown Prince Mohammed bin Salman and Prime Minister Shehbaz Sharif on September 17, 2025.
- The Pact: Often described as a “NATO-style” arrangement for the Gulf, the SMDA dictates that an act of aggression against one nation is considered an aggression against both.
- The Motivations: For Riyadh, the deal diversifies its security partners amid uncertainty over U.S. regional commitments and rising tensions in Yemen. For Islamabad, it offers a critical financial lifeline, potentially easing its dependence on the International Monetary Fund (IMF).
The JF-17: “Tested and Cost-Effective”
The primary focus of the acquisition is the JF-17 Block III, a 4.5-generation multi-role fighter jointly developed by the Pakistan Aeronautical Complex (PAC) and China’s Chengdu Aircraft Corporation.
| Feature | JF-17 Block III Specification |
| Avionics | Active Electronically Scanned Array (AESA) radar. |
| Combat Record | Battle-tested in the May 2025 conflict with India and anti-militant strikes. |
| Cost | Estimated at $25M–$30M per unit (roughly 1/3 the cost of an F-16). |
| Maintenance | Approx. $5,000 per flight hour, making it highly sustainable for long-term use. |
Pakistan’s Defense Export Boom
The Saudi deal is part of a broader surge in Pakistani defense exports, which reportedly neared $10 billion in 2025. This week, Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu also held high-level talks in Dhaka, with Bangladesh reportedly considering a purchase of 16 to 32 JF-17 units to modernize its ageing fleet.
“Our aircraft have been tested, and we are receiving so many orders that Pakistan may not need the IMF in six months,” stated Defense Minister Khawaja Asif on Tuesday. With existing contracts already secured with Azerbaijan ($4.6B) and Libya, the Saudi deal would solidify the JF-17 as the premier choice for nations seeking modern airpower without the political or financial hurdles of Western platforms.
JF-17 Thunder fighter jets Picture on Wikimedia by Okonkwo john
