Some members here say that the F-16s were purchased with US military aid but honestly I don't see the direct connection. The last batch of F-16s were purchased by Nawaz Sharif. Now, if these were donations tied directly to military aid then why was Pakistan trying to get a refund, why was Bill Clinton trying to arrange a refund? According to this article the GOP was actually trying to get rid of F-16s, officially because they were not being delivered but possibly also because they were now overpriced garbage after 10 years of sitting in the hangers? If I buy a state of the art computer from Dell today for $3,000 and they hold it back and deliver it in 2015 to me then that computer is no longer worth $3,000. It is probably worth $200 by then.
Finally, on December 1st, 1998, the New Zealand Government announced that it would lease-buy the 28 Pakistani F-16s stored at the AMARC. Three days later, the United States said they hoped for an 'early and fair' agreement on how to compensate Islamabad for its aborted purchase of US F-16 fighters. President Clinton briefed Pakistani Prime Minister Nawaz Sharif on US efforts to compensate Pakistan for the $658 million it paid for the 28 F-16s. US officials said the United States has already paid $157 million of this back to Islamabad, raising the money by selling aircraft components to other countries. New Zealand agreed to pay some $105 million over 10 years to lease the fighters, providing additional funds that could be used to give Pakistan some of its money back.
This again supports my opinion that since the 1990s and into the future if Pakistan attempts to deal with the US(or France) for aircraft then one way or another, circumstances will ensure that the aircraft are garbage! The US(and probably not even France) can be considered a reliable supplier of aircraft. Also since it is becoming easier and easier to secretly install "circuit breakers" into the electronics of MODERN jetfighters it is even more important that as much as possible, the future planes in PAF should be partly designed in Pakistan--mainly relating to the firmware in these planes.
And I am not saying US military aid should be refused, just that it should not be wasted on the wrong equipment.