Can Pakistan Do Without IMF Loan In Future? Defence Minister Khawaja Asif's 'Big' JF-17 Plan

Last Updated:January 12, 2026, 19:43 IST

Pakistan defence minister Khawaja Asif thinks an unprecedented surge in global orders for the JF-17 Thunder jet may render the $7 billion IMF programme unnecessary

The JF-17, jointly manufactured by the Pakistan Aeronautical Complex and China’s Chengdu Aircraft Corporation, is marketed as a cost-effective, multi-role fighter with a unit cost between $25 million and $30 million. (Image: AFP/File)

It looks like Pakistan is betting its economic future on the Chinese-origin JF-17 Thunder fighter jets. And defence minister Khawaja Asif thinks an unprecedented surge in global orders for the aircraft may render Islamabad’s dependence on a $7 billion IMF programme unnecessary.

Asif’s latest statement comes at a time when Pakistan recently welcomed the release of a $1.2 billion loan tranche from the International Monetary Fund (IMF).

He, however, told Geo News: “Our aircraft have been tested, and we are receiving so many orders that Pakistan may not need the International Monetary Fund in six months."

The cornerstone of this highly ambitious fiscal strategy is a series of multi-billion dollar deals, the highlight of which is a $4-billion weapons pact with the Libyan National Army marking one of Pakistan’s largest-ever arms sales, which includes the JF-17 and training aircraft. The country has also reached a deal with Azerbaijan as it seeks to monetise its domestic defence industry.

According to sources, central to this outreach is a strategic negotiation with Saudi Arabia. The two allies are in talks to convert approximately $2 billion of existing Saudi loans into a procurement deal for the JF-17, the sources said. This “jets-for-loans" arrangement, potentially worth a total of $4 billion, aims to operationalise a mutual defence pact signed last year while easing Pakistan’s acute financial strain as per a Reuters report.

The government is also celebrating potential milestones elsewhere. Iraq has expressed “keen interest" in the JF-17 Thunder and Super Mushshak trainer aircraft following a visit by Pakistan’s air force chief to Baghdad. Similarly, extensive talks have been held with Bangladesh regarding the procurement of the aircraft with Islamabad promising “fast-tracked delivery" and a complete support ecosystem.

The JF-17, jointly manufactured by the Pakistan Aeronautical Complex (58 percent) and China’s Chengdu Aircraft Corporation (42 percent), is marketed as a cost-effective, multi-role fighter with a unit cost between $25 million and $30 million.

Analysts have suggested that the jet’s marketability has increased because it is “tested and has been used in combat".

But there are also those who look at this plan with skepticism. Some experts argued that the revenue from production may not be sufficient to rescue the nation from its debt while other critics pointed to the heavy toll of the May 2025 military conflict with India, known as ‘Operation Sindoor’. Pakistan reportedly lost between six and nine fighter jets and saw nearly 20 percent of its air base infrastructure suffer extensive damage.

The IMF’s $7 billion programme has strict conditions. The latest tranche requires fiscal reforms, subsidy cutbacks, and stringent anti-corruption measures to tackle “persistent and widespread corruption risks".

While Prime Minister Shehbaz Sharif hails the loans as proof of stability, Pakistan remains one of the IMF’s largest debtors.

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