Fighter Jets To Help Pak Stop Taking IMF Loans, Pakistan Defence Minister’s Jet Export Claim Collapses Under Debt Reality

8th January 2026 at 3:45 PM

1 minute read

Karachi : Pakistan, which was forced to sell its flag-carrier Pakistan International Airlines (PIA) because of an IMF condition, might not need the multinational financial body’s assistance after six months, according to claims by Defence Minister Khawaja Asif. The minister’s assertions came on the back of a claimed surge in defence orders that Pakistan was receiving, including of a Chinese-origin fighter jet.

Khwaja Asif claimed that defence orders with Pakistan have surged to such an extent after the May 2025 four-day mini-war with India that Pakistan might soon be able to forgo loans from the International Monetary Fund (IMF). The IMF had in 2023 approved a $7-billion financial assistance programme for Pakistan, the country’s 23rd. However, the rescue act came with strict fiscal reform conditions for Islamabad. The privatisation of PIA was part of that plan.

Pakistan’s ability to withstand the May 2025 India-Pakistan mini-war had translated into increased global demand for its military hardware. “Our aircraft have been tested, and we are receiving so many orders that Pakistan may not need the IMF in six months,”Asif said, arguing that the world has taken notice of Pakistan’s military capabilities. A retired Pakistani Air Marshal told Reuters that the Islamic Republic was in talks with six countries, including Saudi Arabia, to export defence equipment.

The total deal was worth $4bn, with an additional $2bn to be spent on equipment over and above the loan conversion,” Reuters reported, quoting one of the sources. Defence analyst and Air Marshal Amir Masood (Retd) told the news agency that Pakistan was in negotiating or had finalised deals with six countries to export defence equipment, including JF-17 jets and electronic and weapons systems for the fighters. The jet-for-loans deal with Riyadh is important because it hasn’t just announced a $6-billion financial aid for Islamabad in 2018 but has also deferred repayments as Pakistan failed to manage enough funds to pay up in time.