From tanks to jets: Pakistan’s $13bn defense deals set to supercharge economy

Pakistan’s growing $13 billion defense export pipeline could significantly strengthen the country’s external account position, accelerate investments and develop the tech sector, according to a KTrade Macro Research report released on Tuesday.

“Post the success of Bunyan-e-Marsoos, Pakistan has seen a massive boost to its diplomatic standing with geo-strategic deals and engagements,” read the report titled Defense deals could be the key economic driver over 2026-2030.

“A key outcome which is emerging from these engagements are the defense deals and defense agreements.”

JF-17 Thunder in focus as PAF chief, Indonesian defence minister discuss defence cooperation

The report noted that the total value of the deals, which it tracked, is already worth around $13 billion.

“This could have a significant impact on the overall economic numbers, since this could lead to 82% jump in our FX reserves and also help achieve the 2029 export target of $60 billion set under Uraan Pakistan.“

Moreover, this could also catalyze investments in supporting industries including component suppliers, avionics manufacturers, and training services, creating employment opportunities across the economy.

“Lastly, we think a strong defense tech industry will also have positive impact on the overall technology sector,” it added.

The report noted that Pakistan’s defense exports are not limited to military fighter jets but also span military tank (Al-Khalid tank), drones, armored vehicles, naval systems, and ammunition/small arms, reflecting a portfolio of military equipment of various use cases and capabilities, read the report.

“We think institutions such as the Pakistan Aeronautical Complex (PAC Kamra), Pakistan Ordinance Factor (POF Wah), Heavy Industries Taxila (HIT), and Karachi Shipyard & Engineering Works (KSEW) could be involved in these exports.

“Among these, the strongest interest seems to be for JF-17 Thunder, a 4.5 Gen fighter plane. Over the years several other nations such Iran, Sri Lanka, Zimbabwe, Algeria, Ethiopia, Argentina and Uzbekistan have also expressed interest in the planes,” it shared.

Several countries have shown interest in acquiring the celebrated JF-17 fighter jet, which bolstered its prestige after demonstrating its capabilities in the May 2025 war against India. The light combat aircraft is jointly developed by Pakistan and China and produced in Pakistan.

It is pertinent to mention that Pakistan and Saudi Arabia are in talks to convert about $2 billion of Saudi loans into a JF-17 fighter jet deal, deepening military cooperation months after the two nations signed a mutual defence pact last year.

Similarly, Pakistan also held detailed discussions with Bangladesh on the potential procurement of JF-17 fighter jets and Super Mushshak training aircrafts.

Pakistan has also secured a $4 billion weapons pact with the Libyan National Army.

On Tuesday, a high-level Indonesian defence delegation met the Pakistan Air Chief to discuss strategic aviation cooperation, including the JF-17 Thunder fighter jet.

The report noted that Pakistan’s defense export could benefits from a global increase in defense spending.

“We think there could be further potential from developing and selling drones, and more advanced missile systems.

“Africa could be another large market for Pakistan following the potential leads from Libya and Sudan. Nigeria, and other regions with conflicts such as Congo or Rwanda could also be potential customers for Pakistan’s defense equipment,” it said.