Archive · 9 Jan 2026
Pakistan Eyes Defense Deals to Reduce IMF Reliance
Pakistan's economy is facing some tough times.
The country's growth is expected to be around 3%, which is a bit lower than what the International Monetary Fund (IMF) thought.
This is because Pakistan's exports have gone down, especially rice and textiles.
The floods in Pakistan have also hurt the agricultural sector.
Because of these problems, more people might be out of work.
The country is also seeing higher prices for some foods and services.
However, some items like pulses and potatoes have become cheaper.
The World Bank says that international prices for goods have gone down, but Pakistan is still having economic problems.
The defense minister thinks that if Pakistan gets more orders for its JF-17 Thunder jets, the country might not need loans from the IMF.
Pakistan has been talking to countries like Saudi Arabia, Bangladesh, and Libya about buying these jets.
But some people are not sure if this will really help Pakistan's economy.
Pakistan's GDP growth projected at 3% for 2025-26, below IMF's estimate of 3.2%.
Exports declined by 14.5% in November 2025, with rice exports dropping by 49%.
Floods damaged the agricultural sector, leading to a potential larger fall in rice output.
Unemployment expected to rise by 1.2 percentage points, adding nearly 1 million to the unemployed.
Inflation rate increased to 5.6% in December 2025, with notable price increases in wheat, sugar, and gas.
- Who
- Pakistan's government and economy
- What
- Potential defense deals to reduce reliance on IMF loans
- When
- 2025-2026
- Where
- Pakistan
- Why
- To address economic challenges and reduce dependence on IMF loans
- Projected GDP Growth Rate (2025-26)
- 3%
- IMF's GDP Growth Estimate (2025-26)
- 3.2%
- Decline in Exports (November 2025)
- 14.5%
- Decline in Rice Exports
- 49%
- Expected Unemployment Increase
- 1.2 percentage points
- Inflation Rate (December 2025)
- 5.6%
- Potential JF-17 Deal with Saudi Arabia
- $4 billion (with $2 billion for additional equipment)
- Pakistan's Debt to IMF (as of January 7, 2026)
- $10.61 billion
Sources
Pakistan’s GDP Growth Seen At 3%, Below IMF Estimate: Report
'So Many Orders, IMF No Longer Needed': Drowning In Debt, Pakistan's Khawaja Asif Claims Jet Sales 'Surging' After India Conflict
‘We may not need IMF loans,’ says Pak defence minister. Is the JF-17 Islamabad’s new economic lifeline?
Pakistan defence minister thinks it won’t need IMF loans soon. Is this just a fantasy?
India’s maize exports rebound on price parity