Deal suspended after financing withdrawn
Pakistan has placed a $1.5 billion agreement to supply aircraft and weapons to Sudan on hold after Saudi Arabia withdrew its plan to finance the purchase and signalled that the deal should be terminated, according to multiple security and diplomatic sources.
The proposed transaction had been in its final stages earlier this year and was initially brokered by Saudi Arabia as part of broader defence cooperation arrangements. Riyadh’s decision to step back from financing it effectively stalled execution of the contract, forcing Islamabad to suspend progress on the export.
Sources said the shift followed a reassessment of Saudi Arabia’s involvement in regional conflicts, including the war in Sudan, where fighting between the national army and the paramilitary Rapid Support Forces has triggered one of the world’s most severe humanitarian crises and intensified competition among foreign actors in the Red Sea region.
Riyadh meeting ended backing
According to officials familiar with the matter, a meeting held in March between Sudanese military leaders and Saudi authorities in Riyadh resulted in the termination of Saudi financial backing for the arms deal. Some Western governments had also urged Saudi Arabia to avoid deeper engagement in proxy conflicts across Africa, further influencing the policy shift.
The stalled Sudan agreement was among several defence export negotiations pursued by Pakistan’s military after heightened international attention on its aircraft and weapons systems following border skirmishes with India last year. Pakistan has separately promoted sales of the JF-17 Thunder, a fighter jet it builds with China, including in talks disclosed in January 2026.
Saudi Arabia remains one of Pakistan’s closest strategic partners and a key provider of financial assistance to Islamabad, including loans and balance-of-payments support. Bilateral ties deepened further after the two countries signed a mutual defence pact last year that treats aggression against either state as an attack on both.
Second transaction under review
In a related development, another proposed defence transaction valued at approximately $4 billion involving the Libyan National Army is also facing uncertainty, with sources indicating that Saudi authorities are reviewing their strategic posture in both Sudan and Libya.
The reports were published by Profit, the business publication of Pakistan Today, citing multiple security and diplomatic sources.
Sources & reporting notes
This is a summary of published material, not eyewitness reporting. Sources were reviewed on 2026-04-20.
- Profit by Pakistan Today — Saudi funding pullout forces Pakistan to freeze $1.5bn Sudan arms dealPublished 20 April 2026 · The suspended $1.5bn Sudan aircraft and weapons deal, the March Riyadh meeting that ended Saudi financing, the mutual defence pact and the separate $4bn Libya transaction under review.
