Secret arms sales to Ukraine wins Pakistan IMF bailout

Pakistan’s munitions, vital for sustained warfare, have been identified within the Ukrainian military’s equipment

WASHINGTON – Secret arms sales from Pakistan at the behest of the U.S. to Ukraine has played a pivotal role in securing a bailout for Islamabad from the International Monetary Fund (IMF) earlier this year. 

An American online news outlet The Intercept claims that the arms deal indicated Pakistan’s support in the Ukraine war, where the U.S. had urged it to pick a side.

The news outlet claims that internal government documents from both countries show that these arms sales were designed to equip the Ukrainian military and draw Pakistan into a conflict.

Pakistan’s munitions, vital for sustained warfare, have been identified within the Ukrainian military’s equipment. 

The U.S. officials had expressed displeasure with former Prime Minister Imran Khan’s neutral stance. This led to his removal in April 2022. 

These were confirmed by leaked records from the Pakistani military detailing arms transactions between Pakistan and the U.S. from mid-2022 to early 2023.

Funds from these arms sales greatly assisted Pakistan in meeting the financial targets set by the IMF for the bailout. 

In May 2023, Pakistani Ambassador Masood Khan and U.S. Assistant Secretary of State Donald Lu discussed how these arms deals could strengthen Pakistan’s financial stance with the IMF. 

Lu confirmed that the arms deals were valued at approximately $900 million, which would aid in bridging the estimated $2 billion financial gap set by the IMF.

Uzair Younus, director of the Pakistan Initiative at the Atlantic Council’s South Asia Center, emphasized the IMF deal’s importance, suggesting that without it, Pakistan might have faced an economic meltdown.

With this economic relief, the military continued its crackdown on Khan’s supporters and dissidents, jeopardizing Pakistan’s democratic future.

The IMF announced a surprise decision to offer Pakistan a $3 billion stand-by arrangement to replace the previous $1.1 billion advisory loan, which came with stricter conditions.

Last month, the same U.S. media outlet had reported the existence of a secret Pakistani cable that contained direct evidence that the State Department had supported the ouster of Pakistani Prime Minister Imran Khan through a vote of no confidence.