Pakistan expected to receive $700 million from China this week amid economic crisis

This handout picture taken and released by the Pakistan Prime Minister Office on November 2, 2022, shows Pakistan Prime Minister Shahbaz Sharif (L) and China's Premier Li Keqiang (R) posing for a photograph prior to their talks at the Great Hall of the People in Beijing, China. (Photo courtesy: Pakistan Prime Minister Office/AFP/FILLE)
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Updated 22 February 2023
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Pakistan expected to receive $700 million from China this week amid economic crisis

  • Pakistan is facing a major dollar liquidity crunch and has even restricted import of essential items
  • The government plans to wrap up talks with the IMF to unlock a stalled loan facility of $7 billion

KARACHI: Pakistan’s finance minister Ishaq Dar announced on Wednesday the government was expecting to receive $700 million from China in the ongoing week which would bolster the country’s dwindling forex reserves that have hit an alarmingly low level.

The announcement comes at a time when Pakistan is facing a major dollar liquidity crunch which has even forced the government to restrict the import of essential items.

Pakistan is also negotiating with the International Monetary Fund (IMF) to unlock a stalled loan program amounting to $7 billion and the talks are expected to be wrapped up by the end of this week.

“Formalities completed and Board of China Development Bank has approved the facility of $700 million for Pakistan,” Dar said in a Twitter post. “This amount is expected to be received this week by State Bank of Pakistan which will shore up its forex reserves!”

Apart from negotiating with the IMF for external financing, Pakistan has also secured deposits from friendly nations, such as Saudi Arabia, the United Arab Emirates and China, to strengthen its official dollar reserves.

The government previously returned some of these deposits to meet a Chinese procedural requirement while calling for their rollover.

The finance minister did not say if the money expected from China this week was an additional deposit from the neighboring state or a rollover of previous one.


Pakistan, Bangladesh explore potential JF-17 aircraft sale, strengthening air force cooperation

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Pakistan, Bangladesh explore potential JF-17 aircraft sale, strengthening air force cooperation

  • Bangladesh Air Force chief, defense delegation meet Pakistan Air Force chief in Islamabad
  • JF-17 Thunder is Pakistan’s multi-role fighter jet that it jointly developed with China

KARACHI: Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu and a high-level Bangladeshi defense delegation on Tuesday discussed strengthening air force cooperation and the potential sale of JF-17 Thunder aircraft, the Pakistan military’s media wing said.

Pakistan’s JF-17 Thunder, a multi-role fighter jet jointly developed with China, has become the backbone of the Pakistan Air Force (PAF) over the past decade, designed to replace aging legacy aircraft.

Bangladesh Air Force (BAF) Air Chief Marshal Hasan Mahmood Khan led a high-level defense delegation meeting with Sidhu at the Air Headquarters in Islamabad, the Inter-Services Public Relations (ISPR) said. 

“The meeting focused on strengthening operational cooperation and institutional synergy, with emphasis on training, capacity building and collaboration in aerospace advancements,” the military’s media wing said.

“Detailed discussions were also held on potential procurement of JF-17 Thunder aircraft,” the ISPR added.

Sidhu reaffirmed Pakistan’s commitment to supporting the BAF through a comprehensive training framework, from basic to advanced flying and specialized courses across PAF institutions, the ISPR said. He also assured fast-tracked delivery of the Super Mushshak trainer aircraft, along with a complete training and long-term support ecosystem, it added.

Super Mushshak is a lightweight, two to three-seater single-engine aircraft. It can operate from short, unprepared strips, according to the Pakistan Aeronautical Complex.

Khan expressed interest in benefiting from the PAF’s operational expertise and sought assistance in maintenance support for his country’s aging fleet, the ISPR said. Khan also discussed the integration of air defense radar systems between both nations to enhance air surveillance.

The Bangladeshi delegation visited key PAF facilities, including the National ISR & Integrated Air Operations Center, PAF Cyber Command, and the National Aerospace Science & Technology Park, during their visit, the ISPR said.

“The visit underscored the strong historical ties between Pakistan and Bangladesh and reflected a shared resolve to deepen defense cooperation and build a long-term strategic partnership,” the statement said.

The JF-17 fighter jet has seen extensive operational use in recent years, taking part in air-to-air and air-to-ground missions across multiple theaters. The aircraft was used in counterterrorism operations in North Waziristan in 2014 and 2017. It was also involved in the 2017 downing of an Iranian drone near the southwestern Balochistan border and in Operation Swift Retort during the 2019 aerial skirmish with India.

The fighter jet also featured in Pakistan’s 2024 cross-border strikes inside Iran and Afghanistan targeting militant groups and was deployed again in combat roles during the May 2025 conflict with India. Pakistan claimed it had downed six Indian fighter jets during the conflict, which New Delhi rejected. 

Pakistan’s military announced in November last year that it signed a memorandum of understanding with a “friendly country” to procure the JF-17 Thunder aircraft during the Dubai Airshow 2025.

The meeting between both sides also took place as Pakistan draws closer to Bangladesh, amid Dhaka’s increasingly strained ties with India. India and Bangladesh’s relations have remained tense since the ouster of former Bangladesh PM Sheikh Hasina in 2024.

Hasina fled to India following violent student-led protests in 2024. New Delhi has so far not accepted Bangladesh’s request to extradite the former prime minister.