Bankrupt Pakistan's Desperate Measures: Fighter Jets & Military Stakes for Debt Repayment

Economy
C
CNBC Awaaz•10-01-2026, 08:19
Bankrupt Pakistan's Desperate Measures: Fighter Jets & Military Stakes for Debt Repayment
- •Pakistan, facing a severe economic crisis, is offering JF-17 Thunder fighter jets and stakes in military institutions to repay debts.
- •Negotiations are underway with Saudi Arabia to convert $2 billion debt into a JF-17 Thunder deal, potentially worth $4 billion.
- •Pakistan plans to offer UAE a $1 billion stake in the army's Fauji Foundation to adjust debt and roll over another $2 billion.
- •Experts view these moves as economic compulsion and policy failures, raising questions about transparency and governance.
- •Critics warn that using arms exports as an economic solution is dangerous, urging for serious economic reforms.
Why It Matters: Pakistan is resorting to controversial military asset-for-debt deals amid its severe economic crisis.
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