Bombs for Bailouts: Pakistan Supplied Weapons to Ukraine in Return for IMF Loan
The Biden administration helped Pakistan get a controversial new bailout from the International Monetary Fund after Pakistan agreed to secretly sell arms to the United States for the war in Ukraine, according to a new blockbuster report by The Intercept. The deal allows Pakistan to sell some $900 million in munitions while keeping IMF loans flowing to the government in Islamabad amid a spiraling economic crisis, which is driven at least partly by the austerity measures imposed by the IMF loan. Pakistan’s position on the war in Ukraine has shifted significantly since Russia’s invasion and the ouster of Prime Minister Imran Khan, who was removed from office in 2022 under pressure from U.S. diplomats who objected to his “aggressively neutral“ stance on the war. Khan is now imprisoned in Pakistan on corruption charges. Meanwhile, the caretaker government backed by Pakistan’s powerful military has delayed planned elections, widely seen as an attempt to block Khan’s supporters from power. “When the United States has a primary foreign policy objective, in particular when it’s a war, everything else falls away. That’s what you’re seeing in Pakistan now,“ says The Intercept’s Ryan Grim.
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