Why Pak minister believes cash-strapped nation won't need IMF in 6 months

Pakistan Defence Minister Khawaja Asif has said the country may not need loans from the International Monetary Fund (IMF) within six months, as its defence industry is getting a large number of foreign orders and could change the country's economic situation, Reuters reported.

 

"Our aircraft have been tested, and we are receiving so many orders that Pakistan may not need the IMF in six months," Asif said, referring mainly to the demand for Pakistan-made fighter jets and defence systems.

Pakistan expanding defence exports

Pakistan has been ramping up efforts to strengthen its defence exports. According to the report, retired Air Marshal and defence analyst Aamir Masood said Pakistan is either in talks with or has finalised defence deals with six countries. These deals include JF-17 fighter jets, electronic systems and weapons for the aircraft. The JF-17 jets are jointly developed by Pakistan and China.

 

Reuters reported that Pakistan and Saudi Arabia are also discussing a plan to convert about $2 billion in Saudi loans into a deal for JF-17 fighter jets. The two countries signed a mutual defence agreement last year.

 

Last month, Pakistan also signed a weapons deal worth over $4 billion with Libya’s eastern-based Libyan National Army, reportedly making it one of the country's biggest arms deals. It includes JF-17 fighter jets and training aircraft.

 

Pakistan has also held talks with Bangladesh on a possible sale of JF-17 jets, Reuters reported. Through these deals, Pakistan is trying to solidify its relations with nations in South Asia and the Middle East.

Long history of IMF dependence

Pakistan has depended on IMF loans for many years to manage its economy, repay debts and support foreign exchange reserves. The country is currently under a $7 billion IMF programme, which is its 24th deal with the Fund.

 

This programme followed a short-term $3 billion IMF loan in 2023 that helped Pakistan avoid defaulting on its payments. The country managed to secure IMF support after Saudi Arabia and other Gulf countries agreed to provide financial help and extend loan repayments.

 

The increasing dependence on defence deals also comes as Pakistan's economy is likely to grow at a slow pace. The IMF projects Pakistan's real gross domestic product (GDP) to grow at 2.7 per cent in 2026.

 

The country's total outstanding purchases and loans stood at $6,590.33 million as of November 30, 2025.