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Pakistan, Saudi in talks on JF-17 jets-for-loans deal, sources say
The mutual defence deal was signed following Israel’s strikes on what it said were Hamas targets in Doha, an attack that shook the Gulf region.
Pakistan and Saudi Arabia are in talks to convert about $2 billion of Saudi loans into a JF-17 fighter jet deal, two Pakistani sources said, deepening military cooperation months after the two nations signed a mutual defence pact last year, Reuters reported.
The talks underscore how the two allies are moving to operationalise defence cooperation at a time when Pakistan is facing acute financial strain and Saudi Arabia is reshaping its security partnerships to hedge against uncertainty about U.S. commitments in the Middle East.
The mutual defence deal was signed following Israel’s strikes on what it said were Hamas targets in Doha, an attack that shook the Gulf region.
One of the sources said the discussions were limited to the provision of JF-17 Thunder fighter jets, the light combat aircraft jointly developed by Pakistan and China and produced in Pakistan, while the second said the jets were the primary option among others under discussion.
The first source said the total deal was worth $4 billion, with an additional $2 billion to be spent on equipment over and above the loan conversion. The sources close to the military with knowledge of the matter spoke on condition of anonymity because they were not authorised to speak on the deal, read the report.
Pakistan’s military and finance and defence ministries did not immediately respond to requests for comment. Saudi Arabia’s government media office also did not respond.
Pakistan’s Air Chief Zaheer Ahmed Baber Sidhu was in Saudi Arabia this week to discuss “bilateral defence cooperation, regional security environment and future avenues of collaboration” with his counterpart Lieutenant General Turki bin Bander bin Abdulaziz, Pakistan’s military said in a statement on Thursday.
Aamir Masood, a retired Air Marshal and analyst, said Pakistan was in talks about or had finalised deals with six countries to provide equipment including JF-17s and electronic systems and weapons systems for the jets. He said those countries included Saudi Arabia, but could not confirm any details about the negotiations.
The JF-17s marketability has been increased because “it is tested and has been used in combat,” he told Reuters, adding that it’s also cost effective. Pakistan has said the aircraft was deployed during its conflict with India in May last year, the heaviest fighting between the neighbours in decades.
The mutual defence pact, signed in September, committed both sides to treat any aggression against either country as an attack on both, significantly deepening a decades-old security partnership.
Pakistan has long provided military support to the kingdom, including training and advisory deployments, while Saudi Arabia has repeatedly stepped in to support Pakistan financially during periods of economic stress.
In 2018, Riyadh announced a $6 billion support package for Pakistan, including a $3 billion deposit at the central bank and $3 billion worth of oil supplies on deferred payment.
Saudi Arabia has since rolled over deposits multiple times, including a $1.2 billion deferment last year, helping Islamabad stabilise its foreign exchange reserves amid chronic balance-of-payments pressures.
Pakistan has in recent months stepped up defence outreach as it seeks to expand arms exports and monetise its domestic defence industry.
Last month, Islamabad struck a weapons deal worth more than $4 billion with Libya’s eastern-based Libyan National Army, officials said, one of the country’s largest-ever arms sales, which includes JF-17 fighter jets and training aircraft.
Pakistan has also held talks with Bangladesh on the possible sale of JF-17s, as it widens its arms supply ambitions beyond South Asia and the Middle East.
On Tuesday, Pakistan’s defence minister said the success of its weapons industry could transform the country’s economic outlook, Reuters reported.
“Our aircraft have been tested, and we are receiving so many orders that Pakistan may not need the International Monetary Fund in six months,” Khawaja Asif told broadcaster Geo News.
Pakistan is currently under a $7 billion IMF programme, its 24th, which followed a short-term $3 billion deal that helped avert a sovereign default in 2023. It secured the Fund’s support after Saudi Arabia and other Gulf allies provided financial and deposit rollovers.
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US hits China- and Hong Kong-based entities with sanctions over Iran weapons
The U.S. State Department also designated two companies and individuals based in Iran and Belarus in connection with Iran’s conventional arms-related activities, Treasury said.
The U.S. government on Wednesday said it was imposing sanctions against 11 people and entities, including several based in China and Hong Kong, for supporting weapons procurement by Iran’s Islamic Revolutionary Guard Corps and the Iranian military, Reuters reported.
Nine of those designated were China- and Hong Kong-based individuals and companies that facilitated the procurement of weapons for Iran’s military, and a Hong Kong-based company operating within Iran’s clandestine banking network, the U.S. Treasury’s Office of Foreign Assets Control said in a statement.
The U.S. State Department also designated two companies and individuals based in Iran and Belarus in connection with Iran’s conventional arms-related activities, Treasury said.
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Pakistan says all aboard military helicopter killed in crash in Pakistani Kashmir
All personnel on board a military helicopter have been killed in a crash near Muzaffarabad in Pakistani Kashmir, Pakistan’s military said in a statement on Wednesday, without specifying the number of deaths.
“An Mi-17 helicopter of Pakistan Army Aviation crashed near Muzaffarabad today during take-off due to technical fault,” the military said in a statement, Reuters reported. “There were no survivors.”
Rescue teams have reached the site and a board of inquiry has been ordered to ascertain the exact technical cause of the accident, it said.
The helicopter crashed while taking off and caught fire, a Reuters witness said, adding that firefighters were trying to control the flames.
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Iran targets US bases in Jordan and the Gulf after Trump orders strikes near Hormuz
Iran’s Revolutionary Guards said they had carried out attacks against a U.S. base in Jordan and 21 other targets in the Gulf on Wednesday in retaliation for American strikes around the Strait of Hormuz, Iranian media reported.
The clashes mark one of the biggest exchanges in hostilities since the two countries agreed to a ceasefire in April, Reuters reported.
The Iranian strikes, which included attacks in Kuwait and Bahrain, came after the U.S. military said on X it had targeted Iranian air defence, ground control stations and surveillance radar sites near the strait in response to what U.S. President Donald Trump said was the downing of a U.S. Apache helicopter on Tuesday.
“I believe the response should be very strong, very powerful, and that’s what this one is,” Trump told ABC News on Tuesday.
The escalation in violence deepens doubts about the prospects for a deal to end the war that started on February 28 with joint U.S.-Israeli strikes against Iran. Tehran responded by firing on Gulf neighbours that host U.S. bases and all but choked off the Strait of Hormuz, a vital conduit for oil and gas.
The latest U.S. strikes lasted around four hours before the U.S. Central Command posted just before 9 p.m. ET (0100 GMT Wednesday) that they had ended. A U.S. official said almost 20 Iranian targets had been struck.
Iran’s state media reported that Qeshm island and the port city of Sirik in the Strait of Hormuz were attacked.
Sounds of explosions were heard in nearby Bandar Abbas, and later in the vicinity of Jask, near the entrance to the strait, Iranian media reported, citing local sources and residents.
Iran’s Revolutionary Guards said in response they had targeted four sites at the U.S. al-Azraq base in Jordan using long-range missiles, Iranian media reported.
The Guards said the targets included F-35 fighter jet hangars and a command-and-control centre, and warned they were ready to deliver a “crushing and decisive” response to any further U.S. attack.
Jordanian armed forces said on Wednesday they had intercepted and shot down five missiles launched from Iran toward al-Azraq. The military added that debris from the interception operation fell on Jordanian territory but caused no injuries or material damage.
The Kuwaiti army said its air defence systems were engaging hostile aerial targets and urged the public to follow official safety instructions, after Iran’s Revolutionary Guards said they had targeted the Ali Al Salem base in Kuwait with drones.
Iran’s Revolutionary Guards said earlier they attacked the U.S. Fifth Fleet in Bahrain with drones and threatened “more severe responses” if hostilities continued, according to media.
Bahrain’s Interior Ministry said a warning siren had been sounded and urged the public to head to safety. Air defences had repelled Iranian attacks, a media adviser to Bahrain’s king said soon after in a post on X.
A U.S. official, speaking on condition of anonymity, said initial assessments showed nearly all missiles and drones launched by Iran were intercepted and they were not immediately aware of any reports of harm to U.S. personnel or damage to U.S. locations.
The Pentagon did not immediately respond to a request for comment. Reuters could not immediately verify the battlefield reports.
Oil prices climbed about 1% in early Asian trade on Wednesday following the escalation in hostilities.
NOT A BIG DEAL?
On Tuesday, a U.S. Apache helicopter was brought down by a one-way Iranian attack drone, according to a U.S. official who spoke on condition of anonymity. Two U.S. pilots involved in the helicopter incident were uninjured, Trump said.
Iran’s state media cited a military source as saying that no offensive air military operations had been conducted in the Strait of Hormuz in the previous 24 hours.
A U.S. Navy surface drone found and rescued the two crew, the U.S. military said, after the U.S. Army attack helicopter went down in waters near Oman’s coast while on patrol at around 3 a.m. on Tuesday (2300 GMT on Monday).
The U.S. military’s Central Command gave no reason for the crash. It said the two crew were rescued after two hours and said they were in stable condition – a more cautious assessment than Trump’s description.
Iran’s Foreign Minister Abbas Araqchi did not directly address the helicopter incident, but said in a post on X that foreign forces in the region risked being involved in accidents or crossfire.
“To reduce risk, best solution is for them to leave,” he wrote.
Trump told The Wall Street Journal during a phone call on Tuesday that the helicopter incident “wasn’t a big deal” and stressed that “the pilot is fine.”
However, the episode could well add further strain to efforts to broker a peace deal to end the wider Middle East war and reopen Hormuz.
Trump has repeatedly said Iran and the United States are close to an agreement, though there have been few signs of progress since a tenuous ceasefire took effect in early April.
Fighting between Israel and Iran-backed Hezbollah militants in Lebanon has continued, and Tehran has maintained its restrictions on most shipping through the Strait of Hormuz, which before the war carried a fifth of the world’s crude oil and liquefied natural gas. Washington has imposed its own blockade of Iranian ports.
U.S. Energy Secretary Chris Wright said on Tuesday that ship traffic through Hormuz is rising “very meaningfully,” but added it would take many months to get back to normal flows of energy once the war is over.
Trump has said any peace deal must ensure Iran cannot develop a nuclear weapon. Iran denies any such ambitions.
Iran’s demands include the lifting of international sanctions, the release of billions of dollars in frozen assets and recognition of its control of the strait.
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