Will Pakistan no longer need IMF loans? Behind Khawaja Asif’s claim and the plan to ‘weaponise’ China’s JF-17

Pakistani Defense Minister Khawaja Asif made a remarkable statement regarding the country’s International Monetary Fund (IMF) funds. Dr. stated that after the conflict with India in May last year, the country’s demand for Chinese-origin JF-17 Thunder jets increased and that it will most likely not need more funds from the international organization after six months.

These statements are based in the context of the IMF condition under which the country was forced to sell its flagship airline, Pakistan International Airlines (PIA). “Our planes have been tested and we are getting so many orders that Pakistan may not need the International Monetary Fund in six months,” Asif told broadcaster Geo News.

How dependent is Pakistan on the IMF?

Pakistan owes $7 billion under the 24th IMF program, which comes after a $3 billion short-term deal that saved Pakistan from sovereign default in 2023. It managed to gain IMF support after Saudi Arabia and other Gulf allies expanded financial aid and handed over deposits.

These loans come with stringent conditions such as fiscal reforms, subsidy cuts, and income-generating initiatives that Pakistan must comply with to receive the loan.

Increase in demand for China’s JF-17s

Pakistan has recently intensified defense aid to increase arms exports and generate revenue from the domestic defense industry. JF-17 fighter jets have emerged as the backbone of Pakistan’s military hardware program, which includes a defense pact with Azerbaijan and a $4 billion arms deal with the Libyan National Army, one of the largest arms sales in the country’s history.

Responding to the Air Force’s claim, Pakistani political scientist and author Ayesha Siddiqa, quoted by India Today, said the minister was “imitating many defensive journalists who cannot distinguish the front of an aircraft or submarine from its rear.” He also argued that Pakistan did not retain sufficient funds from such agreements to reduce its dependence on IMF loans even after production.