Air Marshal Anil Chopra
An International Monetary Fund (IMF) team arrived in Pakistan last Friday to hold talks as they requested a longer and larger bailout package under the Extended Fund Facility (EFF). Cash-strapped Pakistan needs a rollover of around $12 billion in debt from key allies in 2024–25 to meet the whopping $23 billion gap in its external financing. Pakistani insiders are hoping to get a rollover of $5 billion from Saudi Arabia, $3 billion from the UAE, and $4 billion from China. Meanwhile, they are seeking fresh financing from China. China has provided developing countries with over $1.1 trillion in loans through its Belt and Road Initiative (BRI). According to a 2023 Aid-Data report, 80 per cent of the loans involve countries in financial distress, like Pakistan.
Despite such heavy debt, Pakistan continues to spend significantly on defence. Its 2023 defence budget was $8.5 billion, a 16 per cent increase despite the IMF breathing down their neck. It was 1.7 per cent of GDP. Meanwhile, Pakistan has been in talks with China about adding numbers to the JF-17, buying more J-10 CE, and also indicating a desire to acquire the fifth-generation J-31 fighters. In parallel, Pakistan is working with Turkey for their fifth-generation ‘Kaan’ fighter aircraft and unscrewed aircraft.
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