Pakistan Denies Allegations of Arms Sales to Ukraine for IMF Bailout Package

Foreign Office Rejects Controversial Report

In response to the report published by “The Intercept”, the Ministry of Foreign Affairs, Pakistan denies allegations of arms sales to Ukraine for IMF bailout Package as a part of strategy to secure the International Monetary Fund (IMF)’s bailout package. In this article we’ll discuss details pertaining to the arms deals, foreign office’s response, what “The Intercept” reports, and previous foreign office claims to report the controversy.

Russia-Ukraine Crisis and IMF Bailout

After many skirmishes occurring around the border, between Russia and Ukraine, the Russian President Vladmir Putin decided to invade Ukraine on February 24, 2022 while he chaired a meeting with Prime Minister of Pakistan Imran Khan. This invasion by the Russian President has created a complex geopolitical situation on the international political landscape.

Immediately afterwards, Europe, United States and United Kingdom started taking sides and compelled various countries counterparts to issue statements against Russian Invasion, in which western block was quite successful. It is alleged by the Intercept that against this backdrop, International Monetary Fund (IMF) Executive board approved a $3 billion bailout program for Pakistan in July of the current year.

It was a significant financial arrangement, as it came during a challenging economic juncture for the cash-strapped Pakistani government.

The Intercept Report: Allegations of Arms Sales

Another report published on Sunday, by The Intercept, has claimed a connection between arms sales and IMF bailout. The report alleged that in order to get the IMF bailout package from IMF, Pakistan was directed to sell arms to Ukraine, to which Pakistani administration succumbed.

The report states that there are two sources of the report who have the insights and knowledge of this controversial arrangement between Pakistan and United States. Moreover, it has also been corroborated by the internal correspondence between the American and Pakistani government.

The main purpose of this deal was to assist the Ukrainian Military in their warfare, implicating Pakistan in a conflict under pressure by the United States to take sides as stated in the previous paragraph.

Foreign Office’s Response: “Baseless and Fabricated”

After the report, National Media and social media was stormed with questions on “The Intercept’s Report”, Spokesperson to the Ministry of Foreign Affairs, Ms. Mumtaz Zahra Baloch categorically rejected these allegations citing it to be “baseless and fabricated”.

She further stressed that the IMF Standby Arrangement had already been negotiated successfully between Pakistan and IMF to employ essential economic reforms and giving it any other characterization is disingenuous. Ms. Mumtaz Zahra Baloch reiterated Pakistan’s policy of remaining neutral in this conflict has been strictly observed and no such deals pertaining to arms and ammunition is underway.

Ukraine’s Rejection of Claims

In July, Ukrainian Foreign Minister Dmytro Kuleba also visited Pakistan. During his visit, Kuleba also dismissed these reports and rejected the allegations of arms sales to Ukraine to support their war efforts against the Russian Invasion.

However, Former Foreign Minister of Pakistan Bilawal Bhutto-Zardari reverberated similar sentiments, rejecting any military supply agreement between Pakistan and Ukraine during the conflict.

Foreign Office’s Prior Denials

In the middle of last year, Foreign Office questioned the accuracy of reports for the first time, claiming Pakistan government’s involvement in supplying ammunition to Ukraine in its conflict with Russia are completely baseless and frivolous. Such reports had been circulating in the media since the middle of the previous year, but Islamabad’s official denial of involvement in the Russia-Ukraine conflict was relatively rare until then.

Intercept Report: Sources and Authentication

According to the reporter, the Intercept’s report is relying on “two sources with knowledge of the arrangement” and “internal Pakistani and American government documents.” Referred documents quoted agreement between Pakistan and US for arms and ammunition deal to be executed between the summer of 2022 to the spring of 2023.

The report further elucidated that documents revealed by the sources were corroborated and signatures by the American brigadier general were compared with the publicly available mortgage records in the United States. Lastly, previously unreported Pakistani disclosures of arms sales to the United States, posted by the State Bank of Pakistan has also contributed to the report’s findings.

Pakistan’s provision of arms to Ukraine was an open secret, but it seemed odd this would be done by a country that professed neutrality in the war.
According to The Intercept, it’s because the arms sales were used to help secure a badly needed IMF deal. https://t.co/aDoDLf2H4c

— Michael Kugelman (@MichaelKugelman) September 18, 2023

Read More: Supreme Court of Pakistan’s Challenge to the Practice and Procedure Act 2023

The Role of Economic Capital and Political Goodwill

The Intercept report also suggested that Pakistan has been able to secure the IMF bailout package solely on the basis of political goodwill generated through this transaction. The report also claims that US State Department had agreed to whisper a good word in IMF’s ear about the undisclosed weapons deal, as reported by sources with knowledge of the arrangement and established by relevant documents.

To conclude the article, Pakistan has fervently dismissed allegations of arms sales to Ukraine for securing the IMF bailout as reported by “The Intercept”. The Ministry of Foreign Affairs maintain their neutrality on the subject. The Intercept report, while maintaining its stance, has cited sources and documents, confirming their version of the story to be true.