The Pakistani news agency, the Dispatch News Desk, has unveiled
an in-depth and insightful analysis of Pakistan’s Defence Sector as
we approach the end of 2025. The report highlights the crucial role
Azerbaijan plays within this strategic framework, positioning it
prominently at the forefront of discussions and initiatives shaping
the future of defense in the region.

Azernews presents the article:

Pakistan’s defence agreements and international partnerships
have further strengthened its international image since the May
2025 Pak-India tensions. From defense cooperation with Saudi Arabia
to the export of JF-17 aircraft to countries like Azerbaijan, these
agreements have played a key role in projecting Pakistan as a
responsible and reliable defense partner. All this has not only
highlighted Pakistan’s defense capabilities but also strengthened
its position in the international community. Saudi Arabia,
Azerbaijan and Türkiye have been topped on agenda for defence
partnership, export and collaboration.

The year 2025 was of exceptional importance for Pakistan’s
defense sector. This year, Pakistan not only strengthened its
defense capabilities in the region but also signed several
international agreements, including a historic defense agreement
with Saudi Arabia, a major sale of JF-17 Thunder aircraft to
Azerbaijan, and defense equipment exports with other countries. In
addition, Pakistan also conducted successful tests of missiles,
drones and other advanced technologies, which further strengthened
its defense industry and its role in the region. This comprehensive
report presents all the major defense contracts and tests from
January 2025 to December 2025 in a month-by-month format, so that
readers can get a complete understanding of not only the details of
the events but also their background, objectives, financial
aspects, and regional and global impacts.

Initial negotiations between Pakistan and Azerbaijan for the
sale of JF-17 Thunder Block III aircraft began in January 2025.
Azerbaijan decided to modernize its air force after the 2020
Nagorno-Karabakh conflict, and preferred Pakistan’s JF-17 Block
III. The initial estimate for the deal included the purchase of 16
aircraft, which was later increased to 40.

Several factors were behind Azerbaijan’s decision: reducing its
dependence on Russian-made aircraft, acquiring the capability of
modern AESA radar and PL-15 missiles, and consolidating its defense
superiority in the region. For Pakistan, the deal was not only
financially significant but also a milestone for its defense
industry.

JF-17 Block III modernization: Installation of PL-15E
missiles

In April 2025, Pakistan began equipping its JF-17 Block III
aircraft with Chinese-made PL-15E long-range air-to-air missiles.
These missiles have a range of 145 km, and together with the AESA
radar, give the Pakistan Air Force a significant advantage in the
region.

The move was aimed at improving its air superiority over India’s
Rafale and Su-30 MKI aircraft. Although the PL-15E has a shorter
range than the Chinese version, its presence has brought about
significant changes in Pakistan’s defense strategy. Along with
this, Pakistan has also increased the number of JF-17 Block IIIs,
in order to modernize the air fleet.

Missile Tests and Defense Readiness: Abdali and Fateh
Series Missile Tests

In May 2025, Pakistan successfully tested the Abdali ballistic
missile and Fateh series missiles. The Abdali missile has a range
of 450 km, while the Fateh series missiles can hit targets up to
120 km. The tests were conducted during the Ex-INDUS military
exercise, which was attended by military officers, scientists, and
engineers.

The aim of these tests was not only to verify technical
capabilities but also to test the operational readiness of the
military forces. The missiles included advanced navigation systems,
terminal guidance, and the ability to evade anti-ballistic missile
systems. The President, Prime Minister, and the military leadership
described these tests as important for national defense.

Historic defense deal with Azerbaijan: Sale and
investment of 40 JF-17 Block III

A $4.6 billion defense deal was signed between Pakistan and
Azerbaijan in June 2025, under which Pakistan will supply
Azerbaijan with 40 JF-17 Block III aircraft. This also includes an
investment of $2 billion, which is earmarked for joint industrial
projects, infrastructure, and possibly local production.

The deal is the largest export deal for Pakistan’s defense
industry. Azerbaijan will be supplied with the Block III version,
which includes AESA radar, advanced avionics, PL-15 and PL-10
missile capability, and the ASELPOD targeting system. The deal will
also see Pakistani pilots and technicians train in Azerbaijan.

20% increase in defense budget

In June 2025, Pakistan increased its defense budget by 20%,
mainly due to recent tensions with India and growing threats in the
region. The budget allocated Rs2.55 trillion for the army, air
force, and navy, which is 1.97 percent of GDP. The budget also
includes funds for advanced weapons, drones, and missile
systems.

Establishment of Army Rocket Force Command

In August 2025, Prime Minister Shehbaz Sharif announced the
establishment of the Army Rocket Force Command (ARFC). The force
aims to consolidate conventional missiles and rocket systems,
enhance operational readiness, and counter India’s growing missile
capabilities.

The ARFC includes missiles such as Fateh-1, Fateh-2, and
Fateh-4, which have ranges ranging from 140 to 750 kilometers. The
force was established after the May 2025 Indo-Pakistan conflict, in
which India launched Brahmos missiles at Pakistani targets.

Pakistan-Saudi Arabia Defense Agreement
(SMDA)

On September 17, 2025, Pakistan and Saudi Arabia signed the
Strategic Mutual Defense Agreement (SMDA). Under this agreement, an
attack on either country will be considered an attack on both
countries, and a joint defense response will be given.

Key points of the agreement:

  • Mutual defense: An attack on either country will be considered
    an attack on both.
  • Nuclear umbrella: Pakistan has indicated that it can provide
    nuclear capabilities to Saudi Arabia if needed, but there is still
    ambiguity on this aspect.
  • Defense cooperation: Military training, joint exercises, and
    cooperation in the defense industry.
  • Regional stability: The agreement was signed to promote peace
    and stability in the region.
  • Economic aspects: Saudi Arabia’s investment in Pakistan,
    energy, and infrastructure cooperation.
  • Global media considered the agreement was a change in the
    balance of power in the region and a milestone for Pakistan’s
    defense industry.

Fateh-4 cruise missile test

On September 30, 2025, Pakistan successfully tested the Fateh-4
cruise missile, which has a range of 750 kilometers. The missile
will be operated under the ARFC and is intended to counter India’s
defense capabilities. The test further strengthened Pakistan’s
conventional missile capability and added a new dimension to its
defense strategy in the region.

Delivery of JF-17 Block III to Azerbaijan

In October 2025, Pakistan delivered the first batch of JF-17
Block III aircraft to Azerbaijan. The delivery was made under a
$4.6 billion deal, which also includes training, logistics, and
weapons.

The Azerbaijani president described the delivery as crucial for
its defense superiority in the region. Under the deal, Azerbaijan
was provided not only with modern aircraft but also with
Pakistani-trained personnel and technical support.

Dubai Air Show and new JF-17 Block III deal

During the Dubai Air Show in November 2025, Pakistan signed an
MoU with a new “friendly” country for the export of JF-17 Block
III. Although the country was not named, analysts say the deal
could be with a country in the Middle East or Africa.

The deal demonstrated the global popularity of Pakistan’s
defense industry and presented the JF-17 Block III as a cheap and
modern 4.5-generation fighter jet. Several countries showed
interest in the JF-17 at the Dubai Air Show, and more exports are
expected in the future.

JF-17 combat success in Nigeria

In December 2025, Nigeria successfully used its JF-17 aircraft
to crush a rebellion in Benin. These aircraft targeted insurgent
positions with laser-guided bombs, proving their combat capability.
This success further boosted Pakistan’s defense exports, and
strengthened its defense cooperation in Africa.

Pakistan’s Defense Industry: Pakistan Aeronautical Complex (PAC)
Kamra

Pakistan Aeronautical Complex Kamra is the hub of the country’s
defense industry, where the JF-17, Super Mushtaq, and other
aircraft are manufactured. PAC has expanded its capabilities not
only for domestic needs but also for export purposes. 58% of JF-17
production is done in Pakistan, and most of its components are
manufactured locally.

Global Industrial and Defense Solutions
(GIDS)

GIDS is Pakistan’s state-owned defense company, which
manufactures Shahpar drones, missiles, and other advanced weapons.
The Shahpar-III drone can fly for 30-40 hours, can climb to 35,000
feet, and can carry 6 weapons. The drone is being exported to
several countries, including the Middle East, Africa, and
Türkiye.

Defense Exports and Financial Aspects

Pakistan’s defense exports have the potential to increase from
$500 million to $5 billion annually by 2035, provided industrial
reforms, local production, and improved export strategies are
implemented. JF-17, Super Mushshak, Shahpar drones, and other
weapons are being exported to several countries in Africa, the
Middle East, and Asia.

Export Regulations and Restrictions

Pakistan enacted the Export Control Act in 2004, which imposes
strict regulations on the export of nuclear, biological, and
missile technology. SECDIV oversees this process, and exports are
permitted in accordance with international agreements, such as the
NSG, MTCR, and the Australia Group.

Defense Experiments: Missiles, Drones, and Other
Technologies

Missile Experiments

Abdali Ballistic Missile: Successfully tested on 3 May 2025 with
a range of 450 km.
Fateh series missiles: Tested on May 6, 2025, with a range of 120
km, advanced navigation, and terminal guidance.
Fateh-4 cruise missile: September 30
Tested with 750 km range in 2025, operated under ARFC.

Drones and Unmanned Systems

Shahpar-III drone: Introduced at IDEAS and IDEX exhibitions in
2025, flight up to 30-40 hours, 6 weapons, altitude up to 35,000
feet, SATCOM link, and local production.
Exports: Shahpar-III is being exported to the UAE, Azerbaijan,
Nigeria, Türkiye, and other countries.
Naval, Artillery, and Rocket Forces

Army Rocket Force Command: Established in August 2025, the
operational readiness of conventional missiles, competing with
India’s Brahmos and S-400 capabilities.
Naval Cooperation: Pakistan Navy increases joint exercises and
defense cooperation with Qatar, UAE, and Oman.
Pakistan’s Defense Industry and Future

Pakistan’s defense industry made significant progress in 2025.
PAC Kamra, GIDS, NESCOM, and other institutions are developing
advanced aircraft, drones, missiles, and weapons. The JF-17 Block
III, Shahpar-III, and Fateh series missiles have made Pakistan a
strong defense force in the region. Through increased exports,
local production, and industrial reforms, Pakistan can achieve the
target of $5 billion annual defense exports by 2035.

Conclusions

In 2025, Pakistan signed several historic agreements in the
defense sector, including a strategic defense agreement with Saudi
Arabia, a major sale of JF-17 Block III to Azerbaijan, and defense
cooperation with other countries. Successful tests of missiles,
drones, and conventional weapons have further strengthened
Pakistan’s defense capability. The changing geopolitical balance in
the region, the new strategies of India and Iran, and relations
with the United States and China have given Pakistan an important
defense and strategic role.

Recommendations for the future are:

  • Industrial reforms: Promote local production, supply chains,
    and technical training.
  • Export Strategy: Explore new markets in Africa, the Middle
    East, and Asia.
  • ​​Legal Oversight: Strictly monitor exports and fully comply
    with international agreements.
  • Advanced Research: Prioritize research and development on
    hypersonic missiles, advanced drones, and cyber defense.
  • Regional Cooperation: Further expand defense cooperation with
    Saudi Arabia, Azerbaijan, Türkiye, and other friendly
    countries.

The achievements of Pakistan’s defense industry in 2025 are
important not only for domestic security but also for peace and
stability in the region. A comprehensive strategy, industrial
reforms, and international cooperation are essential to sustain and
further promote these achievements in the future.

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