Pakistan's Fighter Jet Export Ambitions Amid Economic Crisis Draw Scrutiny

"To be clear, an economy struggling to meet its ends-meet needs to focus on producing necessary goods for mass consumption, in order to ensure the welfare of its citizens; otherwise, the scarcity can lead to a spiral of rising inflation, rising inequality, and rising economic injustice. This crucial economic lesson seems to be missed by Pakistan's leaders," Nasir Khattak, who specialises in the China-Pakistan region, wrote in a report in the Afghan Diaspora Network.

In 2025, Pakistan signed an export deal of military hardware worth $10 billion. The export deal includes the China-Pakistan joint venture JF-17 fighter jet and the Mushshak trainer aircraft. Pakistan has been presenting itself as an alternative international arms market to Africa, Europe, and the Gulf. However, it has to cross many bridges at home.

"First, the sale of jets is presented as a panacea for its debt trouble and future IMF bailouts. However, the production of the JF-17 jet, jointly ventured with China, has a significant manufacturing cost. This manufacturing cost is riddled with foreign exchange problems as many of the components need to be imported from China, Russia, and the UK. Besides, Pakistan is striking deals with risky partners like Libya, which, under the UNSC and Western sanctions, is not allowed to make defence procurements. So, the logistics of such deals remain a gaping issue," the report said.

Second, Pakistan wants to address its macroeconomic instability through extensive military involvement. This approach has not worked in the past, and the chances are bleak that it will this time. The Pakistan government, under the influence of the military, has been involved in economically antithetical and ethically appalling practices of cutting a larger share of its pie to the defence sector year after year, according to the report. According to the 2025 budget, Pakistan increased defence spending by 20 per cent while making a 7 per cent cut in overall spending.

Pakistan's apparent aim to be a fighter-jet supplier to the world comes with many developmental concerns. The much-anticipated achievement of self-reliance through selling off the fighter jets will also be accompanied by a massive outflow of monetary shares to the foreign collaborators. The entire hullabaloo about Pakistan's defence diplomacy has little to offer to ordinary citizens. Experts have time and again warned Pakistan about its dismal state of development, increasing poverty, and the need to revamp institutions; however, the Pakistan government's current focus appears to have no impact on these structural issues.

"The current economic situation is characterised by fragile recovery, high inflation, substantial debt obligations, and significant vulnerability to external shocks, including potential oil price hikes. Despite claiming to be a market economy, the essential components of the economy are determined in extra-market space. Subsidies are often negotiated, with tax exemptions given to those with an elite political voice: mostly an economy working on patronage politics and elite capture," the report in the Afghan Diaspora Network said.

"Hence, the paradox: While the economy suffers with many loose ends on energy, logistics, digital infrastructure, education, poverty, and employment, the government vies to establish itself as a major exporter of fighter jets. And it again begs reiteration that the celebrated JF-17 is not kosher, as many of the parts are imported and the foreign suppliers need to be paid in foreign currency, leading to lower net earnings. Thus, the economy, barely coming in terms of survival with high vulnerability to external shocks, is betting on its notorious defence sector for correcting its macroeconomic vitals," it added.

- IANS