Pakistan's IMF Exit Claim: Defence Minister's 'Fantasy' Amidst Economic Woes?

• Pakistan's Defence Minister Khawaja Asif claimed the country might not need IMF loans within six months, citing increased demand for defence equipment like JF-17 Thunder jets.
• This claim follows Pakistan's long history of IMF reliance, being the third-largest debtor to the global lender after Argentina and Ukraine, with $10.61 billion owed.
• The IMF approved a $7 billion loan in September 2024 and a $3 billion bailout in July 2023, with conditions including revenue raising and privatization, like the sale of Pakistan International Airlines (PIA).
• Despite recent credit rating upgrades and some stabilization, Pakistan's economy remains weak, marked by high debt, slow growth, and rising poverty (25.3% in 2024-25).
• IMF projections indicate Pakistan's economy faces a 'narrow stabilization path' with weak growth and heavy debt, despite easing immediate free-fall risks.

Why It Matters: Pakistan's defence minister's claim of soon exiting IMF reliance sparks disbelief amid deep economic challenges.