After refusing to sell the Gripen fighter planes to Pakistan, Sweden has reportedly agreed to supply Islamabad its Airborne Early Warning and Control System which, the Pakistan Air Force claims, will partially counter-balance the Indian acquisition of the Israeli Phalcon surveillance system.

Sweden will sell the system along with 14 SAB 2000 aircraft to Pakistan, <i>The News</i> said.

The deal was negotiated during a recent trip to Stockholm by President Pervez Musharraf. PAF's Chief Marshal Safadat Kaleem will be visiting Sweden shortly to sign it, the newspaper said.

The deal, considered to be the biggest in defence in recent times for Pakistan, will boast the PAF and Pakistan Navy's reaction capabilities, the paper said.