Pakistan eyes IMF exit through JF-17 fighter jet exports

Pakistan is seeking to reduce its dependence on International Monetary Fund (IMF) loans by boosting defence exports, particularly the JF-17 Thunder fighter jet and Super Mushshak trainer aircraft, as Islamabad looks to stabilise its fragile economy.

Defence Minister Khawaja Asif said potential defence orders worth around $10 billion from countries including Azerbaijan, Libya, Bangladesh and Nigeria could deliver a significant economic boost and provide a sustainable alternative to repeated IMF bailouts.

In an interview with senior journalist Hamid Mir, Asif said the expected inflow of foreign currency would help Pakistan move away from IMF programmes that come with stringent fiscal reform and subsidy-cutting conditions.

The biggest breakthrough so far is a $4.6 billion deal with Azerbaijan to supply 40 JF-17 Block III fighter jets—the largest single defence export contract in Pakistan’s history. Another agreement, valued at nearly $4 billion, has reportedly been finalised with the Libyan National Army, covering 16 fighter jets and 12 Super Mushshak trainer aircraft.

Nigeria has also expressed interest in expanding its air fleet, while high-level talks are under way with Bangladesh over the possible procurement of JF-17 jets.

The defence minister further indicated that discussions are ongoing to convert nearly $2 billion in loans from Saudi Arabia into fighter jet purchase agreements.

Although Pakistan secured several billion dollars in IMF support through the Extended Fund Facility and climate financing in 2024 and 2025, the government is now aiming to achieve greater self-reliance through domestic production and exports. Analysts say the projected $10 billion in defence export earnings could strengthen foreign exchange reserves and reduce reliance on external lenders.

However, the plan’s success will depend on timely delivery of aircraft and the political and geopolitical stability of buyer countries. With expanding production capacity at the Pakistan Aeronautical Complex, observers believe Pakistan is positioning itself as an emerging player in the global arms export market.