The cash-rich kingdom of Saudi Arabia is reportedly negotiating to swap $2 billion in loans to debt-strapped Pakistan for JF-17 Thunder fighter jets, a lightweight Sino-Pakistani aircraft typically designed for “low-end” customers.
Pakistan and Saudi Arabia have maintained strong military ties rooted in shared mutual interests, a common religious identity, and deep military cooperation.
In September 2025, the two countries formalised their partnership into a Strategic Mutual Defence Agreement, declaring that “any aggression against either country shall be considered an aggression against both.”
Notably, the deal came amid increased volatility in the Middle East, specifically after Israel’s strikes on Qatar, which led Gulf states to look for diversified security guarantees in the face of “unreliable” US assurances.
Moreover, Pakistani officials indicated that Islamabad’s nuclear capabilities “will be made available” to defend Saudi Arabia in a military crisis.
“Nuclear is integral to this deal, and Pakistan remembers that the kingdom effectively financed their nuclear program and supported them when they were sanctioned,” Ali Shihabi, an analyst close to the royal court, told AFP.
On January 8, 2026, an exclusive Reuters report, citing two unidentified sources, claimed that Pakistan and Saudi Arabia are working out a deal that could convert roughly $2 billion in Saudi loans to Pakistan into the purchase of JF-17 jets for the Royal Saudi Air Force (RSAF).
This arrangement would help Pakistan avoid defaulting on its financial obligations amid acute economic pressures, while Saudi Arabia would be able to recoup its investment through military hardware rather than cash repayments.
Does Saudi Arabia Really Want JF-17 Thunder?
Developed jointly by China’s Chengdu and the Pakistan Aeronautical Complex (PAC), the JF-17 is a light-weight fighter jet powered by a single Russian-designed RD-93 turbofan engine. The aircraft has been upgraded multiple times since entering service with the Pakistan Air Force (PAF), with the Block 2 and Block 3 variants promoted for export.
According to Pakistani reports, the JF-17 emphasises cost-effectiveness, agility, and versatility for air-to-air and air-to-ground strike missions. Additionally, it could serve in secondary roles such as training, close air support, or low-threat operations.
The aircraft is marketed by the China-Pakistan consortium as an affordable, sustainable, and combat-proven platform, free of political strings, and much more economical than Western alternatives.
In addition to Pakistan, the jet is currently operated by Myanmar, Nigeria, and Azerbaijan. Meanwhile, Libya reportedly placed an order for the JF-17 in December 2025, and Bangladesh is currently mulling its acquisition. Another Reuters report claims even Sudan could explore its acquisition.
The Libyan National Army (LNA), which has placed an order for JF-17, operates as a rival authority to the United Nations-recognised Government of National Unity in Tripoli. Moreover, Libya remains under an international arms embargo, keeping Western weapons off the charts, and making JF-17 an appropriate alternative.
Meanwhile, Azerbaijan’s purchase of the JF-17 Block III may have been influenced by an urgent need to modernise its air force amid extremely close ties with Pakistan.
The JF-17s have also received some serious bad press after Myanmar reported multiple technical issues with the aircraft, which purportedly led to its grounding. Nigeria, on the other hand, has refused to buy additional jets beyond the three purchased in 2021, instead signing up for the Italian M‑346FA aircraft.
However, a common factor among all JF-17 buyers is that they do not have strong military budgets, including Pakistan itself. Myanmar’s 2024 military expenditure was estimated at $5 billion USD, according to SIPRI data; Nigeria’s defence budget for 2025 was roughly $3.3 billion, and Azerbaijan’s defence budget was pegged at $5 billion. Pakistan is reported to have a defense budget of $9 billion.
In comparison, Saudi Arabia’s defence budget is substantial, with allocations of around $78 billion for 2025, up from roughly $75.8 billion in 2024, making it the fifth-largest defence spender worldwide and the largest in the Arab world.
The JF-17 is projected as a “no strings attached” alternative to Western jets; however, Saudi Arabia faces little hostility from the West, with US President Donald Trump authorising the sale of the F-35 stealth fighters to the kingdom despite sustained opposition by its closest ally, Israel.
The Royal Saudi Air Force (RSAF) already boasts an impressive line-up of combat jets—F-15SA, a pre-variant of the advanced F-15EX Eagle II, and Eurofighter Typhoon 4.5th-generation multi-role fighter. Once (if) the F-35s join the Saudi fleet, they could have one of the most powerful air forces in the region.
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Meanwhile, the JF-17, even in its most advanced Block III variant, which boasts features like an active electronically scanned array (AESA) radar, an enhanced fly-by-wire flight-control system, an infrared search and track system, a helmet-mounted display, and PL-15 long-range missiles, cannot match the capability of the jets that are currently in service with the RSAF, or on offer.
Even China, the co-developer of the JF-17 Thunder, does not operate the jets despite boasting its cutting-edge capabilities.
To increase the export potential of the JF-17, Pakistan has positioned it as a combat-hardened platform, stating that the aircraft was deployed during the Indo-Pakistan conflict in May 2025. However, it was the J-10C that hogged all the limelight (Pakistan claimed it shot down IAF Rafales; India rejected), while the JF-17 got hardly any credit.
In fact, Indian media reports, based on statements by IAF officials, indicate that Pakistan may have about 13-14 aircraft in the India-Pak May conflict, including multiple JF-17 jets. Pakistan has rejected the Indian claims.
Questions have also been raised about whether the US would allow Chinese-origin JF-17s to operate with F-35s (if the deal goes through), amid fears of sensitive tech leaks.
The US, which expelled Turkey from the F-35 program for buying Russian S-400, could also withdraw the permission to sell its most prized jet to Saudi Arabia. Earlier, for instance, the US withdrew permission to sell the F-35 to the UAE over concerns related to the Emirati connection with China and potential security implications.
Saudi Arabia is unlikely to jeopardize its “F-35 Dream” for JF-17 Thunder!
“JF 17 is not a bad fighter at all. With the apparent success that Pakistan has been touting about and Trump endorsing it, America may not allow Chinese equipment to be delivered to Saudi Arabia,” IAF Group Captain MJ Augustine Vinod (retd) told EurAsian Times.
Interestingly, shortly after the Reuters report made the explosive claim, the Pakistan Foreign Office said it was “unaware” of any talks with Saudi Arabia to convert Saudi loans into a JF-17 fighter jet deal.
Tahir Hussain Andrabi, a spokesperson for the Pakistan Foreign Office, stated that it had not received any formal communication regarding the purported agreement.
Any development, he said, would be announced “at the appropriate time.
- Contact the author at sakshi.tiwari13 (at) outlook.com
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