F-16 in fine print: How much Pakistan paid and how much profit US made? | A brief history of US-Pakistan F-16 deals

Over the last two decades, Pakistan has poured more than $4 billion into buying, upgrading and maintaining its fleet of F-16 fighter jets from the United States. Contrary to some reports, much of this spending came from Pakistan’s own funds, not from American military aid.

Records show that in 2010 alone, Pakistan paid $1.4 billion for 18 new F-16 Block-52 jets and another $1.3 billion to upgrade its older jets. Six years later, another $699 million was spent on eight more F-16s with full systems. In 2011, Pakistan also ordered $62 million worth of spare parts.

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The trend continued with maintenance contracts. In 2019, a $125 million package funded round-the-clock technical oversight, while in 2022, Pakistan paid $450 million for a sustainment deal covering spares, repairs, and engineering services.

Lockheed Martin, the American company behind the F-16, made huge profits from these deals. With an average operating margin of around 11%, it’s estimated that the US defence industry earned nearly $445 million in profit from Pakistan’s F-16-related contracts.

Here’s a look at how the numbers add up:

• 18 F-16 jets (2010): $1.4B → ~$154M profit
• F-16 upgrades (2010): $1.3B → ~$143M profit
• 8 F-16 jets (2016): $699M → ~$77M profit
• Support deal (2022): $450M → ~$50M profit
• Technical support (2019): $125M → ~$14M profit
• Spare parts (2011): $62M → ~$7M profit

Total estimated US industry profit: $445 million

Total cost to Pakistan: over $4 billion

History of F-16 deals with Pakistan

The F-16 journey began in the early 1980s, when the US sold up to 110 jets to Pakistan under President Reagan. But by 1990, sanctions hit due to Pakistan’s nuclear programme, freezing deliveries.

After 9/11, Pakistan returned as a key US partner in the so-called war on terror. Military ties resumed, and in 2005, two upgraded F-16s were handed over as military aid. In 2006, a major upgrade programme began, mostly funded by Pakistan with a small amount ($108 million) of American assistance.

In 2010, Pakistan received 18 brand-new F-16 Block 52 jets for $1.4 billion. These were pitched as a tool to strike terror in camps with precision. Reports said this was a sign of deeper US-Pakistan ties post-9/11.

By late 2008, Pakistan had asked to use $368 million in US Foreign Military Financing (FMF) for upgrades. Still, over 80% of the total cost came from Pakistan’s own funds.

Tight restrictions on how Pakistan could use the jets

Every F-16 deal with Pakistan came with end-user conditions. The US made it clear: The jets were to be used only for counterterror operations, not against other nations.

Washington closely monitored how Pakistan used the aircraft, aiming to stop any action that might destabilise the region. Despite these limitations, Islamabad continued to invest heavily in these jets.