The United States has approved a significant defence sale package worth $686 million to Pakistan, aimed at enhancing the capabilities of Pakistan’s F-16 fighter jet fleet.

This comprehensive package includes $37 million worth of defence equipment alongside $649 million for various other components such as identification systems, secure communication devices, navigation tools, software upgrades, mission-planning systems, missile adaptor units, and electronic security modules.

The announcement was made by the US Defence Security Cooperation Agency (DSCA), which formally notified Congress on December 8, initiating a 30-day review period.

This sale aligns with US foreign policy and national security objectives, intending to help Pakistan maintain interoperability with US and allied forces for ongoing counterterrorism operations and future contingency plans.

Specifically, the deal includes 92 Link-16 systems and six MK-82 inert 500-pound general-purpose bombs. The upgrades are designed not only to refurbish but also extend the life of Pakistan’s Block-52 and Mid Life Upgrade F-16 fleets through to 2040, addressing flight safety concerns and enhancing operational integration between the Pakistan Air Force and the US Air Force in combat, training, and exercises.

The agreement falls under the F-16 Cryptographic Mandate Compliance and Service Life Extension Program. Lockheed Martin is the main contractor for the deal.

According to official sources, Pakistan has demonstrated the ability to effectively absorb and operate the supplied articles and services within its armed forces. If Congress does not reject the notification within 30 days, the sale will be automatically approved.

This new defence engagement between the US and Pakistan has stirred concerns in India, a close US partner. An official involved in India-US relations emphasised that Washington’s renewed military engagement with Pakistan poses a challenge, given Pakistan's long-standing use of proxy forces against India.

Dhruva Jaishankar, Executive Director at the Observer Research Foundation America, noted the complex dynamics in US policy, which traditionally attempted to de-link Indian and Pakistani relations by simultaneously engaging both countries but steering clear of their bilateral disputes. This renewed focus on Pakistan’s military may complicate progress in India-US ties, particularly on trade and strategic issues.

The $686 million deal is part of a broader spectrum of US-Pakistan collaborations. Recently, the US Export-Import Bank (EXIM) approved $1.25 billion in financing to support the mining of critical minerals at the Reko Diq project in Pakistan’s Balochistan province.

This investment is expected to generate up to $2 billion in US mining equipment and services and create thousands of jobs both in the US and Pakistan. Natalie A. Baker, Charge d'Affaires ad interim at the US Embassy in Islamabad, praised the project as a model for bilateral cooperation that benefits both US exporters and Pakistani communities by fostering employment and economic prosperity.

Additionally, the US administration has dubbed such deals central to American diplomacy, signalling a robust engagement with Pakistan beyond mere military sales. The US Embassy in Islamabad described the EXIM financing as a major driver of economic growth for Balochistan, underscoring the strategic significance of these economic ties.

The renewed engagement can be traced back to earlier in 2025 when then-US President Donald Trump announced a joint trade initiative with Pakistan focusing on developing its substantial oil reserves. Trump highlighted the potential for cooperation by discussing plans to select an oil company to lead the partnership, even hinting at the possibility of Pakistani oil exports reaching India in the future. This initiative demonstrates Washington’s attempts to deepen economic relations alongside military collaboration.

The US-Pakistan defence sale and related economic investments reflect a multifaceted approach by Washington to solidify its strategic partnership with Pakistan. While these moves are designed to bolster Pakistan’s security capabilities and economic development, they create diplomatic and strategic challenges, particularly in the context of India’s security concerns and heightened regional tensions.

Agencies