Peace Gate III
Seven years after the first order, in December of 1988, Pakistan ordered 11 additional F-16A/B Block 15 OCU (Operational Capability Upgrade) aircraft (6 Alpha and 5 Bravo models) under the Peace Gate III program. These aircraft were purchased as attrition replacements and fully paid for, but are still awaiting delivery in the Arizona Desert. The reason for this is that Pakistan got involved in a controversy with the United States over its suspected nuclear weapons capability. Intelligence information reaching US authorities indicated that Pakistan was actively working on a nuclear bomb, had received a design for a bomb from China, had tested a nuclear trigger and was actively producing weapons-grade uranium. Furthermore, the F-16A's of no 9 and 11 squadrons at Sargodha AB have allegedly been modified to carry and deliver a Pakistani nuclear weapon. In addition, Pakistan has steadfastly refused to sign the Nuclear Non-Proliferation Treaty.
As a result, in accordance to the Pressler amendment to the Foreign Assistance Act, which forbids military aid to any nation possessing a
nuclear explosive device, the United States government announced on October 6th, 1990 that it had embargoed further arms deliveries to Pakistan. The 11 Peace Gate III aircraft were consequently stored at AMARC (Aircraft Maintenance and Regeneration Center) at Davis-Monthan AFB, Arizona, also known as
the Boneyard. There, they were put in 'Flyable Hold' for 5 years, during which time 85% of each aircraft's fuel system was preserved with JP-9, and each aircraft had its engine run once every 45 days. This resulted in the curious situation that most of those aircraft now have more engine run time than air time, the latter being only 6 hours. This low air-time figure, plus the fact that these aircraft are the most modern F-16A/B's built, is the main reason why countries interested in second-hand F-16s first look at the Pakistani airframes.
Peace Gate IV
In September of 1989, plans were announced by Pakistan to acquire 60 more F-16A/B's. A contract was signed in the same year under the
Peace Gate IV Foreign Military Sales Programs, for the delivery of 60 F-16s for US $1.4 billion or approximately US $23 million a piece. By March of 1994, 11 of these planes had been built and were directly flown into the Sonoran desert where they joined the 11 Peace Gate III aircraft in storage. A further six aircraft were stored by the end of 1994, so that a total of 17 aircraft (7 F-16A's and 10 F-16B's) of the Peace Gate IV order are now stored. A stop-work order affected the remaining 43 planes of the Peace Gate IV contract.
The Brown amendment later eased the restrictions on weapon exports to Pakistan, but specifically
excluded the F-16s from this release. Pakistan had already paid $685 million on the contract for the first 28 F-16s (11 Peace Gate III and 17 Peace Gate IV), and insisted on either having the planes it ordered delivered or getting its money back.
The saga of the embargoed F-16s
In March 1996, nine aircraft out of those which had already been manufactured for Pakistan, were sold to
Indonesia. However, Indonesia cancelled this order on June 2nd, 1997. This 'unexpected' trouble with the Indonesian F-16 deal means a bigger problem to the Clinton administration both with respect to Pakistan and Indonesia. President Clinton had pledged to the Pakistan Prime Minister, Ms. Benazir Bhutto, that the money paid for the F-16s by Islamabad would be reimbursed if the equipment could not be delivered. In trying to come to terms with Islamabad's demand that Washington would return the money, the Clinton administration went on to see if the planes could be sold to a third country and the proceeds transferred. Interested buyers included amongst others the
Republic of China.
At the end of 1997, with chances of finding a buyer close to zero, it was decided to take the PAF F-16s out of flyable hold and into the Boneyard. The airframes were offered to the Philippine Air Force, in view of its modernization plans. However, lack of funds precluded this deal as well.
In May 1998, a rumor suggested that the 28 Pakistani AF F-16A/B aircraft stored at the AMARC could possibly be donated to the Air Force of the Federation of Bosnia and Herzegovina, as a part of the US led 'Train & Equip' program. As Pakistan is already taking part in this program (training Bosnian Army Anti-tank missile teams), this is a solution that could satisfy both sides in this long dispute. Again, this proved to be not viable.
After the detonation of five nuclear devices by India in May 1998, in a remote area close to its border with Pakistan, Washington feared that this might escalate the old border dispute between Pakistan and India to a full crisis. In order to keep Pakistan from responding to this challenge, US president Bill Clinton suggested that the 28 stored F-16s would be delivered after all, in batches of 1 or 2. However, the internal pressure on the government proved to strong and shortly after India's demonstration, Pakistan responded by detonating an unknown number of nuclear devices.
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.
At the end of 1998, the United States announced it would pay Pakistan $326.9 million in cash and up to $140 million in other compensation to settle the eight-year dispute. The $140 million will include about $60 million in US white wheat that Pakistan will receive during the current US fiscal year, which began on October 1st. The remaining $80 million in compensation will be negotiated by the two sides. The F-16 issue has been a headache for Pakistan, which is grappling to repay millions of dollars on its $32 billion in foreign debt amid a hard currency drought caused by sanctions and the suspension of International Monetary Fund programs.
In 1999 a new New Zealand government was elected who started a major reorganisation of the armed forces. One major element in this was the cancellation of the F-16 contract and the disbandment of its fighter force. The planes stayed in the boneyard for just a little longer.
In 2002, the US finally stopped trying to sell the aircraft and decided to assign them to the USAF and US Navy to fill the Aggressor role. After the demise of the (T)
F-16N aggressor force, the US Navy lacked a high-performance aggressor aircraft. Because of the low airframe life of the embargoed Pakistani F-16s, these airframes were ideally suited for the demanding aggressor role. The 28 aircraft were thus evenly split between the USAF and the US Navy, and will take a vital role in DACT training of US forces.
I think it will be wrong move so early, besides these are not aid but FMS sales.
We have experienced rejection from US even if we paid them for military equipment. Aid or not, we must not underestimate their inclination to stop military sales.