Khawaja Asif says Pakistan may not need IMF loans soon — what's behind the claim
Pakistan's defence minister claims a surge in aircraft orders, potentially ending IMF reliance within six months. This follows a military standoff with India and discussions with Bangladesh and Saudi Arabia for JF-17 fighter jet deals. The Pak minister expressed strong confidence in these orders materializing, suggesting a significant boost to Pakistan's economy.
Pakistan defence minister Khawaja Asif
Pakistan on Tuesday expressed confidence that it may no longer need financial assistance from the International Monetary Fund within six months, with Pakistan defence minister Khawaja Asif claiming the country had seen a surge in aircraft orders following a four-day military standoff with India in May, Geo TV reported.Speaking on a Geo News programme, Asif made a fanciful claim while arguing that the May 2025 India-Pakistan conflict showcased Pakistan's "resolve and military effectiveness" to the world.
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Military tensions escalated in May 2025 after Pakistan-sponsored terrorists carried out a terror attack in Pahalgam, killing 26 civilians in April. India responded with a strong military operation, launching Operation Sindoor, under which it targeted and destroyed multiple terror camps and Pakistani military facilities.However, Khawaja Asif, appearing disconnected from the ground reality, made such statements after a Bangladeshi defence delegation met Pakistan's air chief to discuss a potential sale of the JF-17 Thunder, the multi-role fighter aircraft jointly developed by China and Pakistan. There are also reports of talks between Pakistan and Saudi Arabia to convert about $2 billion in Saudi loans into a JF-17 fighter jet deal, according to two Pakistani sources cited by Reuters.
According to Arab News, several countries have since stepped up defence engagement with Pakistan.“Right now, the number of orders we are receiving after reaching this point is significant because our aircraft have been tested,” defence minister Asif told Pakistan’s Geo News channel.“We are receiving these orders, and it is possible that after six months we may not even need the IMF,” he said.Pakistan markets the Chinese co-developed JF-17 as a lower-cost multi-role fighter and has positioned itself as a supplier offering aircraft, training and maintenance outside Western supply chains.“I am saying this with full confidence,” Asif said. “If all these orders materialise over the next six months, we will not need the IMF.”
Pakistan's repeated reliance on IMF
Pakistan has repeatedly turned to the International Monetary Fund over the years, for financial support to stabilise its fragile economy, with such assistance tied to strict conditions including fiscal reforms, subsidy cuts and revenue-enhancing measures.In September 2024, the IMF approved a $7 billion bailout for Pakistan under its Extended Fund Facility (EFF), followed by a separate $1.4 billion loan under its climate resilience fund in May 2025, aimed at bolstering the country’s economic stability and climate resilience.