Pakistan and Saudi Arabia are holding discussions to convert nearly two billion dollars of Saudi loans into a JF-17 fighter jet agreement.
The talks signal deepening military cooperation months after both countries signed a landmark mutual defence pact last year.
Sources say negotiations focus mainly on the JF-17 Thunder, jointly developed by Pakistan and China and produced domestically.
The potential arrangement comes as Pakistan faces financial strain while Saudi Arabia reassesses regional security partnerships.
One source said the overall deal could reach four billion dollars, including additional spending on equipment beyond loan conversion.
Officials spoke anonymously, as they were not authorised to publicly discuss sensitive defence and financial negotiations.
Pakistan Air Chief Zaheer Ahmed Baber Sidhu recently visited Saudi Arabia for bilateral talks on military cooperation.
Saudi media reported discussions focused on defence collaboration, though neither government officially confirmed deal details.
Analysts say the JF-17’s combat use and cost effectiveness have boosted its international appeal significantly.
Pakistan previously stated the aircraft was deployed during clashes with India, enhancing its market credibility.
The defence talks highlight Pakistan’s broader push to expand arms exports amid economic challenges.
Saudi Arabia has long supported Pakistan financially, repeatedly rolling over deposits to help stabilise foreign reserves.
