Saudi Arabia and Pakistan in talks to swap loans for JF-17 warplanes: Report Submitted by MEE staff on Wed, 01/07/2026 - 21:46 Riyadh wants to rollover its loans to Islamabad for Chinese warplanes as it flexes its muscles in Yemen Saudi Arabia's Crown Prince Mohammed bin Salman (R) welcomes Pakistan's Prime Minister Shehbaz Sharif ahead of their meeting in Riyadh, on 17 September 2025 (Saudi Press Agency/AFP) Off Pakistan and Saudi Arabia are in negotiations to convert about $2bn of Saudi loans into a deal to buy JF-17 fighter jets, Reuters reported on Wednesday. The talks come as Saudi Arabia flexes its military muscle against the UAE in Yemen , and as Pakistan looks to seal major arms deals with Arab states. Saudi Arabia and Pakistan signed a mutual defence pact last year, shortly after Israel launched an unprecedented attack on Qatar that targeted Hamas negotiators in Doha. Pakistan is the only Muslim-majority country in the world with nuclear weapons. Reuters reported that the two defence partners have discussed a deal worth potentially $4bn for Saudi Arabia to purchase the JF-17, a fighter jet jointly produced between Pakistan and China. An additional $2bn could be spent on equipment “over and above the loan conversion”, the report said. Saudi Arabia and Pakistan are close allies. For decades, the Gulf state has provided a financial lifeline to the cash-strapped South Asian country whose military officers and advisors have historically trained, advised and joined the ranks of Saudi’s armed forces. The oil-rich kingdom’s financial support has been on display in the last decade, as Pakistan deals with a series of financial crises. In 2018, Saudi Arabia announced a $6bn aid package for Pakistan. Riyadh agreed to deposit $3bn in Pakistan’s central bank and provide $3bn worth of oil supplies on deferred payment. Over the last eight years, Saudi Arabia has rolled over its deposits at the Central Bank, providing Islamabad with a much-needed financial lifeline that has allowed it to escape a current account crisis. The latter happens when a country spends more on foreign imports and debt payments than it earns on exports. In sum, Pakistan needs Saudi Arabia’s US dollars. Pakistan seals $4bn arms deal to sell Chinese warplanes to Libya's Khalifa Haftar: Report Read More » In return, Riyadh has been able to rely on Pakistan’s well-trained armed forces and vaunted intelligence service, Inter-Services Intelligence. Many of Saudi Arabia’s pilots have come from Pakistan. The talks on the JF-17 come as both countries respond to geopolitical shifts in the region. Reuters reported in December that Pakistan has sealed a deal worth over $4bn to sell military equipment, including 16 JF-17 warplanes, to General Khalifa Haftar's Libyan National Army. Pakistan is trying to boost its arms exports, capitalising on its military hardware's successful performance in a deadly military clash with India in May. For its part, Saudi Arabia has kicked off 2026 by going toe-to-toe with the UAE’s proxies in Yemen, the Southern Transitional Council, or STC. Analysts tell MEE that Saudi air power has been critical in pushing back the STC’s advance in eastern Yemen. Reports indicate that the STC is preparing to withdraw from the port city of Aden. It’s unclear how the Trump administration will respond to Saudi Arabia’s bid to acquire new JF-17s. Washington and Riyadh are in the process of sealing a deal for F-35 warplanes, which are the US’s most advanced. Members of the US national intelligence community have expressed concern that Trump will sell the planes to a country that uses Chinese equipment. Arms Trade News Post Date Override 0 Update Date Mon, 05/04/2020 - 21:19 Update Date Override 0