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Pakistan will buy eight submarines from China in a multi-billion dollar deal that will boost Pakistani navy’s maritime capabilities, The Global Times quoted report from Pakistan's The Express Tribune on Friday.

An agreement was reached in Islamabad during a meeting between Pakistan Finance Minister Ishaq Dar and Xu Ziqin, President of state-owned China Shipbuilding & Offshore International Company Limited (SCOC) — the trade arm of China Shipbuilding Industry Corporation. It was reported then that the contract could be worth USD 4 billion to USD 5 billion, the biggest arms export deal for China.

The two sides in-principle agreed on the sale of eight submarines that China will provide to Pakistan Navy, the report said.

Sources in the finance ministry, however, said the deal is subject to final review from higher authorities in Beijing, following which a formal agreement will be signed.

They also said that Pakistan would make payments in four installments and the delivery will be made in coming years.

According to a vague statement issued by the finance ministry after the meeting, Dar said the visit by the CSOC delegation to Pakistan would strengthen bilateral economic and defense cooperation.

“Pakistan and China have reached an understanding on matters of defense cooperation relating to Pakistan Navy,” the statement said.

“Financial arrangements to this effect were also concluded,” it added.

The statement quoted Xu thanking Dar for his contribution in concluding the arrangements, saying it was reflective of the “deep-rooted” China-Pakistan friendship.

The reports of submarines deal was in the air since the visit of Chinese President Xi Jinping to Pakistan in April.