US approves sale of $686 million tech upgrade, equipment for Pakistan’s F-16 fighter jets

Pakistan Air Force (PAF) fighter jet F-16 performs during an air show in Karachi, Pakistan, on March 11, 2020. (Reuters/File)
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Updated 11 December 2025
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US approves sale of $686 million tech upgrade, equipment for Pakistan’s F-16 fighter jets

  • US Defense Security Coope­ration Age­ncy informs Congress sale will allow Pakistan to partner with US in counterterror efforts, won’t alter regional military balance
  • Non-Major Defense Equipment includes aircraft hardware and software modifications, precision navigation, cryptographic devices, and spare and repair parts

ISLAMABAD: The United States has approved the sale of advanced technology support and equipment for Pakistan’s F-16 fighter jets valued at $686 million, according to a letter sent by the US Defense Security Coope­ration Age­ncy (DSCA) to the American Congress, saying the move would allow Islamabad to partner with Washington in ongoing counterterrorism efforts. 

As per a copy of the document dated Dec. 8 seen by Arab News, the letter stated that Islamabad has requested to buy 92 Link-16 systems communication/data-sharing networks and six Mk–82 inert 500-lb general purpose bomb bodies. The letter also said that the sale includes non-Major Defense Equipment items such as aircraft hardware and software modifications, precision navigation, cryptographic devices, other weapons integration, test and support equipment such as spare and repair parts. 

“The estimated total cost is $686 million,” the DSCA’s letter to Congress reads. “This proposed sale will support the foreign policy and national security objectives of the United States by allowing Pakistan to retain interoperability with US and partner forces in ongoing counterterrorism efforts and in preparation for future contingency operations.”

Pakistan and the US have been key allies in battling militants in the region, with Islamabad counted among Washington’s closes non-NATO allies during the “War on Terror” campaign. The proposed sale takes place as Washington, under US President Donald Trump, warms up to Pakistan after his recent meetings with Prime Minister Shehbaz Sharif and Chief of Defense Forces Field Marshal Syed Asim Munir. 

The DSCA letter said the sale will maintain Pakistan’s capability to meet current and future threats by updating and refurbishing its Block–52 and Mid Life Upgrade F–16 fleet. 

“These updates will provide more seamless integration and interoperability between the Pakistan Air Force and the US Air Force in combat operations, exercises, and training, and refurbishment will extend the aircraft life through 2040 while addressing critical flight safety concerns,” the letter added. 

It further said Pakistan has shown a commitment to maintaining its military forces and “will have no difficulty” absorbing these articles into its armed forces. 

“The proposed sale of this equipment and support will not alter the basic military balance in the region,” the letter said. 

The principal contractor for the deal will be Lockheed Martin Company, the DSCA said, adding that the implementation of the sale will not require the assignment of any additional US government or contractor representatives to Pakistan. 

“All defense articles and services listed in this transmittal have been authorized for release and export to the Government of Pakistan,” the letter concluded. 

The development takes place as Pakistan undertakes efforts to expand its fleet of fighter jets, defense exports and deepen military-industrial partnerships with other countries. Islamabad claimed last month that a “friendly country” signed a memorandum of understanding to procure Pakistan’s JF-17 fighter aircraft during the Dubai Airshow 2025. 

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

The South Asian country has been eager to assert its regional dominance, especially when it comes to air warfare, after its four-day military confrontation with India in May. 

Pakistan claimed it shot down seven Indian fighter jets during the May altercation between the two forces. Indian officials have acknowledged their planes were shot down but have refused to share the exact number, rejecting Pakistan’s claim it had shot down seven. 


IMF warns against policy slippage amid weak recovery as it clears $1.2 billion for Pakistan

Updated 11 December 2025
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IMF warns against policy slippage amid weak recovery as it clears $1.2 billion for Pakistan

  • Pakistan rebuilt reserves, cut its deficit and slowed inflation sharply over the past one year
  • Fund says climate shocks, energy debt, stalled reforms threaten stability despite recent gains

ISLAMABAD: Pakistan’s economic recovery remains fragile despite a year of painful stabilization measures that helped pull the country back from the brink of default, the International Monetary Fund (IMF) warned on Thursday, after it approved a fresh $1.2 billion disbursement under its ongoing loan program.

The approval covers the second review of Pakistan’s Extended Fund Facility (EFF) and the first review of its climate-focused Resilience and Sustainability Facility (RSF), bringing total disbursements since last year to about $3.3 billion.

Pakistan entered the IMF program in September 2024 after years of weak revenues, soaring fiscal deficits, import controls, currency depletion and repeated climate shocks left the economy close to external default. A smaller stopgap arrangement earlier that year helped avert immediate default, but the current 37-month program was designed to restore macroeconomic stability through strict monetary tightening, currency adjustments, subsidy rationalization and aggressive revenue measures.

The IMF’s new review shows that Pakistan has delivered significant gains since then. Growth recovered to 3 percent last year after shrinking the year before. Inflation fell from over 23 percent to low single digits before rising again after this year’s floods. The current account posted its first surplus in 14 years, helped by stronger remittances and a sharp reduction in imports. And the government delivered a primary budget surplus of 1.3 percent of GDP, a key program requirement. Foreign exchange reserves, which had dropped dangerously low in 2023, rose from US$9.4 billion to US$14.5 billion by June.

“Pakistan’s reform implementation under the EFF arrangement has helped preserve macroeconomic stability in the face of several recent shocks,” IMF Deputy Managing Director Nigel Clarke said in a statement after the Board meeting.

But he warned that Islamabad must “maintain prudent policies” and accelerate reforms needed for private-sector-led and sustainable growth.

The Fund noted that the 2025 monsoon floods, affecting nearly seven million people, damaging housing, livestock and key crops, and displacing more than four million, have set back the recovery. The IMF now expects GDP growth in FY26 to be slightly lower and forecasts inflation to rise to 8–10 percent in the coming months as food prices adjust.

The review warns Pakistan against relaxing monetary or fiscal discipline prematurely. It urges the State Bank to keep policy “appropriately tight,” allow exchange-rate flexibility and improve communication. Islamabad must also continue raising revenues, broadening the tax base and protecting social spending, the Fund said.

Despite the progress, Pakistan’s structural weaknesses remain severe.

Power-sector circular debt stands at about $5.7 billion, and gas-sector arrears have climbed to $11.3 billion despite tariff adjustments. Reform of state-owned enterprises has slowed, including delays in privatizing loss-making electricity distributors and Pakistan International Airlines. Key governance and anti-corruption reforms have also been pushed back.

The IMF welcomed Pakistan’s expansion of its flagship Benazir Income Support Program, which raises cash transfers for low-income families and expands coverage, saying social protection is essential as climate shocks intensify. But it warned that high public debt, about 72 percent of GDP, thin external buffers and climate exposure leave the country vulnerable if reform momentum weakens.

The Fund said Pakistan’s challenge now is to convert short-term stabilization into sustained recovery after years of economic volatility, with its ability to maintain discipline, rather than the size of external financing alone, determining the durability of its gains.