Pakistan has put on hold a proposed $1.5 billion agreement to supply weapons and fighter jets to Sudan after Saudi Arabia objected to the deal and decided not to finance it, according to Reuters. The development marks a setback for Islamabad's efforts to expand defence exports after Pakistani military equipment and aircraft gained visibility following last year's military standoff with India.
Reuters had reported in January that the Sudan deal was in its final stages and had been brokered by Saudi Arabia, although Riyadh's role in financing the agreement was not publicly known at the time. On Monday, Reuters reported that Saudi Arabia has "signaled" that Pakistan should terminate the deal after it "dropped the idea" of financing it.
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Saudi Arabia remains one of Pakistan's closest allies and has long been a major source of financial support for Islamabad's struggling economy. Ties between the two countries have deepened further since they signed a mutual defence pact last year, under which aggression against either country would be treated as an attack on both.
The conflict in Sudan between the army and the paramilitary Rapid Support Forces (RSF) has created one of the world's worst humanitarian crises over the last three years. The war has also intensified competition among regional powers and raised concerns over the stability of the Red Sea nation, which is a major gold producer.
Some Western countries had advised Saudi Arabia to avoid involvement in proxy conflicts in Africa, the report added.
Saudi Arabia and the United Arab Emirates have backed rival sides in conflicts across the region, including in Sudan. While both countries publicly support a diplomatic solution, Saudi Arabia has generally aligned itself with Sudan's army, while the UAE has been accused of providing logistical support to the RSF, allegations Abu Dhabi has repeatedly denied.
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The report also mentioned a meeting held in Riyadh in March between Sudanese army leaders and Saudi officials ultimately led to Riyadh withdrawing financing for the deal.
A separate defence agreement involving Pakistan and Libya may also be at risk. Reuters had reported in December that Islamabad was negotiating a $4 billion arms deal with the Libyan National Army.
According to the second Pakistani security source, that deal is also in jeopardy because the Saudis are revisiting their strategy in both Sudan and Libya.
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