Pakistan seeks resumption of military aid as US pushes for progress on IMF reforms

In this file photo, taken on March 23, 2022, Pakistan's Army Special Service Group (SSG) commandos march during the Pakistan Day parade in Islamabad. (Photo courtesy: AFP/File)
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Updated 28 April 2023
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Pakistan seeks resumption of military aid as US pushes for progress on IMF reforms

  • Pakistan military’s assistance was suspended by the Trump administration amid tensions over situation in Afghanistan
  • A top State Department official recognizes the IMF reforms are ‘not easy’ but calls them crucial for Pakistan’s economy

ISLAMABAD: Pakistan’s top diplomat in Washington on Thursday urged the United States to restore military assistance to his country as a senior US official encouraged the government in Islamabad to work with the International Monitory Fund (IMF) by implementing necessary economic reforms.

Pakistan’s military assistance was suspended by the Trump administration nearly five years ago after the former US president accused the South Asian country of “lies and deceit” in one of his Twitter posts, adding that his country had paid over $33 billion without getting enough cooperation from Pakistan against the Taliban insurgents in Afghanistan.

A US State Department spokesperson later announced the US was not entirely ending its military assistance but adopting an “issue-based approach” and would only release money when necessary.




In this screengrab, taken from Wilson Center's official YouTube video on April 28, 2023, Pakistan's Ambassador to the United States Masood Khan addresses a talk on "The Future of US-Pakistan Relations" at the Woodrow Wilson Center in Washington DC on April 27, 2023. (Courtesy: YouTube/WoodrowWilsonCenter)

Pakistan’s envoy to Washington, Masood Khan, took up the issue while addressing a seminar on the future of US-Pakistan relations at the Wilson Center think tank. He said that Foreign Minister Bilawal Bhutto-Zardari was scheduled to attend the Shanghai Cooperation Organization conference in Goa next month, adding that his country equally valued US encouragement to India and Pakistan to constructively engage with each other.

“Beyond that the United States could act as the catalyst to help resolve the Jammu and Kashmir dispute which has kept the region on the brink of war,” he told the gathering. “The United States could also revive its role for strategic stability in South Asia because we believe the policy of imbalance and disequilibrium is fraught with serious perils. In that context, it is important that the United States restores, for Pakistan, foreign military financing and foreign military sales which was suspended by the previous administration.”

 

 

US Principal Deputy Assistant Secretary of State for South and Central Asia Elizabeth Horst also told the participants of the seminar that Islamabad should move ahead on stalled reforms sought by the IMF while promising technical assistance to Pakistan.

“The reform(s) that Pakistan and the IMF agreed to are not easy,” she said, “but it’s crucial that Pakistan take these actions to bring the country back to sound financial footing, avoid falling into further debt and grow Pakistan’s economy.”

“The United States is going to continue to support Pakistan through technical engagements and assistance, particularly when it comes to encouraging Pakistan to enact policies that promote an open and fair and transparent business climate,” she added.

Pakistan signed a $6.5 billion bailout package with the IMF in 2019 but less than half of it has been released as the country could not manage to meet some tough reform conditions.

Pakistan earlier this month announced a boost of $1.3 billion from two close partners, China and the United Arab Emirates, while continuing its engagement with the international lending agency.

With additional input from AFP


Islamabad says surge in aircraft orders after India standoff could end IMF reliance

Updated 22 min 17 sec ago
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Islamabad says surge in aircraft orders after India standoff could end IMF reliance

  • Pakistani jets came into the limelight after Islamabad claimed to have shot down six Indian aircraft during a standoff in May last year
  • Many countries have since stepped up engagement with Pakistan, while others have proposed learning from PAF’s multi-domain capabilities

ISLAMABAD: Defense Minister Khawaja Asif on Tuesday said Pakistan has witnessed a surge in aircraft orders after a four-day military standoff with India last year and, if materialized, they could end the country’s reliance on the International Monetary Fund (IMF).

The statement came hours after a high-level Bangladeshi defense delegation met Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu to discuss a potential sale of JF-17 Thunder aircraft, a multi-role fighter jointly developed by China and Pakistan that has become the backbone of the Pakistan Air Force (PAF) over the past decade.

Fighter jets used by Pakistan came into the limelight after Islamabad claimed to have shot down six Indian aircraft, including French-made Rafale jets, during the military conflict with India in May last year. India acknowledged losses in the aerial combat but did not specify a number.

Many countries have since stepped up defense engagement with Pakistan, while delegations from multiple other nations have proposed learning from Pakistan Air Force’s multi-domain air warfare capabilities that successfully advanced Chinese military technology performs against Western hardware.

“Right now, the number of orders we are receiving after reaching this point is significant because our aircraft have been tested,” Defense Minister Asif told a Pakistan’s Geo News channel.

“We are receiving those orders, and it is possible that after six months we may not even need the IMF.”

Pakistan markets the Chinese co-developed JF-17 as a lower-cost multi-role fighter and has positioned itself as a supplier able to offer aircraft, training and maintenance outside Western supply chains.

“I am saying this to you with full confidence,” Asif continued. “If, after six months, all these orders materialize, we will not need the IMF.”

Pakistan has repeatedly turned to the IMF for financial assistance to stabilize its economy. These loans come with strict conditions including fiscal reforms, subsidy cuts and measures to increase revenue that Pakistan must implement to secure disbursements.

In Sept. 2024, the IMF approved a $7 billion bailout for Pakistan under its Extended Fund Facility (EFF) program and a separate $1.4 billion loan under its climate resilience fund in May 2025, aimed at strengthening the country’s economic and climate resilience.

Pakistan has long been striving to expand defense exports by leveraging its decades of counter-insurgency experience and a domestic industry that produces aircraft, armored vehicles, munitions and other equipment.

The South Asian country reached a deal worth over $4 billion to sell military equipment to the Libyan National Army, Reuters report last month, citing Pakistani officials. The deal, one of Pakistan’s largest-ever weapons sales, included the sale of 16 JF-17 fighter jets and 12 Super Mushak trainer aircraft for basic pilot training.