Pakistan and Saudi Arabia are in talks to transform about $2 billion of Saudi loans right into a JF-17 fighter jet deal, two Pakistani sources mentioned, deepening army cooperation months after the 2 nations signed a mutual protection pact final 12 months.
The talks underscore how the 2 allies are transferring to operationalize protection cooperation at a time of acute monetary pressure and as Saudi Arabia is reshaping its safety partnerships to hedge towards uncertainty about US commitments within the Center East.
The mutual protection deal was signed following Israel’s strikes on what it mentioned have been Hamas targets in Doha, an assault that shook the Gulf area.
One of many sources mentioned the discussions have been restricted to the availability of JF-17 Thunder fighter jets, the sunshine fight plane collectively developed by Pakistan and China and produced in Pakistan, whereas the second mentioned the jets have been the first possibility amongst others beneath dialogue.
The primary supply mentioned the full deal was value $4bn, with a further $2bn to be spent on tools over and above the mortgage conversion.
The sources near the army with information of the matter spoke on situation of anonymity as a result of they weren’t licensed to talk on the deal.
Pakistan’s Air Chief Zaheer Ahmed Baber Sidhu was in Saudi Arabia for bilateral talks, together with on “army cooperation between the 2 sides”, Saudi media outlet SaudiNews50 said on social media platform X on Monday.
Examined in fight
Amir Masood, a retired air marshal and analyst, mentioned Pakistan was in talks about or had finalized offers with six nations to offer tools, together with JF-17s and digital and weapons methods for the jets.
He mentioned these nations included Saudi Arabia, however couldn’t affirm any particulars concerning the negotiations.
The JF-17’s marketability has been elevated as a result of “it’s examined and has been utilized in fight,” he mentioned. Reutersincluding that it is also cost-effective.
The plane was deployed in the course of the battle with India final Might, the heaviest combating between the neighbors in many years.
The army or finance and protection ministries didn’t instantly reply to Reuters’ requests for feedback. Saudi Arabia’s authorities media workplace additionally didn’t reply.
The mutual protection pact, signed in September, dedicated each side to deal with any aggression towards both nation as an assault on each, considerably deepening a decades-old safety partnership.
Pakistan has lengthy offered army assist to the dominion, together with coaching and advisory deployments, whereas Saudi Arabia has repeatedly stepped in to assist Pakistan financially in periods of financial stress.
In 2018, Riyadh introduced a $6bn assist bundle for Pakistan, together with a $3bn deposit on the central financial institution and $3bn value of oil provides on deferred fee.
Saudi Arabia has since rolled over deposits a number of instances, together with a $1.2bn deferment final 12 months, serving to Islamabad stabilize its overseas change reserves amid power balance-of-payments pressures.
Arms gross sales outreach
Pakistan has in current months stepped up protection outreach because it seeks to broaden arms exports and monetize its home protection trade.
Final month, Islamabad struck a weapons deal value greater than $4bn with Libya’s eastern-based Libyan Nationwide Military, officers mentioned, one of many nation’s largest-ever arms gross sales, which incorporates JF-17 fighter jets and coaching plane.
Pakistan has additionally held talks with Bangladesh on the potential sale of JF-17s, because it widens its arms provide ambitions past South Asia and the Center East.
On Tuesday, the protection minister mentioned the success of its weapons trade may rework the nation’s financial outlook.
“Our plane have been examined, and we’re receiving so many orders that Pakistan might not want the Worldwide Financial Fund in six months,” Khawaja Asif informed. Geo Information.
Pakistan is presently beneath a $7bn IMF program, its twenty fourth, which adopted a short-term $3bn deal that helped avert a sovereign default in 2023. It secured the Fund’s assist after Saudi Arabia and different Gulf allies offered monetary and deposit rollovers.
