Pakistan Negotiating With Saudi Arabia, May Supply JF-17 Fighters As Debt Repayment

Islamabad: Pakistan and Saudi Arabia are negotiating to convert approximately $2 billion of Saudi debt into a JF-17 fighter jet deal. This means Pakistan could provide Saudi Arabia with JF-17 fighter jets manufactured in Pakistan in exchange for the debt owed to Saudi Arabia. 

How will the deal work out?

According to Pakistani officials, this initiative will further deepen military cooperation between the two countries. This development comes at a time when Pakistan is grappling with severe economic pressure and Saudi Arabia is diversifying its defence partners amid growing uncertainty regarding US security commitments in the Middle East.

According to reports, these talks are a significant step towards implementing the mutual defence agreement signed last year. This defence agreement was reached after Israel attacked Hamas-linked targets in Doha, the capital of Qatar, raising concerns about the security situation in the Gulf region.

Is JF-17 is the main option?

According to reports, the focus of the talks is on the supply of JF-17 Thunder fighter jets, which were jointly developed by Pakistan and China and are manufactured in Pakistan. The JF-17 is the primary option, although other options have also been discussed. The total proposed deal could be worth $4 billion, with $2 billion likely to be spent on additional military equipment in addition to debt repayment.

What were the issues discussed?

Pakistan Air Force (PAF) chief Zaheer Ahmed Babar Sidhu was recently in Saudi Arabia. According to the Saudi media outlet ‘SaudiNews50’, several issues, including bilateral military cooperation, were discussed during his visit.

What are Pakistani claims regarding JF-17?

Retired Air Marshal and defence analyst Aamir Masood said that Pakistan is in talks with six countries regarding the supply of defence equipment, or deals are in the final stages. This includes the JF-17 and its associated electronic and weapon systems. 

He explained that the demand for the JF-17 has increased because it has been used in combat and is cost-effective. Pakistan claims the aircraft was deployed during a conflict with India last May, one of the most serious military clashes between the two countries in decades. Pakistan's military, finance, and defence ministries did not immediately comment on the report. There was also no immediate response from Saudi Arabia's government media office.

What is the Saudi-Pakistan agreement?

Under a bilateral defence agreement signed in September, the two countries committed to considering an attack on one as an attack on both. Pakistan has long provided Saudi Arabia with military training and advisory assistance, while Saudi Arabia has repeatedly provided financial support to Islamabad during times of economic crisis.

In 2018, Saudi Arabia announced a $6 billion aid package for Pakistan, including a $3 billion deposit in the central bank and $3 billion in oil payments. Since then, Saudi Arabia has repeatedly rolled over its loans, including a $1.2 billion deferral last year. This has helped Pakistan manage its foreign exchange reserves.