Pakistan looks to reduce defence industry subsidies

The Pakistani government has said it has no plans to privatise its state-run defence industry, but is looking to promote greater self-sufficiency within the sector to reduce its dependency on subsidies.

Minister for Defence Production Rana Tanveer Hussein said in comments reported by the official Associated Press of Pakistan that despite recent reports suggesting the government was considering selling off some industrial assets, there was "no question of privatisation of [the] defence production sector".

Despite this, he added that "efforts were under way to make the defence production ministry self-sufficient by avoiding taking grants from the government".

Efforts to promote the sector's self-sufficiency are being channelled through a programme of restructuring intended to support the government's continuing close control of the defence industry sector while promoting a degree of self-governance.

Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options　ihs.com/contact




To read the full article, Client Login
(153 of 397 words)

http://www.janes.com/article/63636/pakistan-looks-to-reduce-defence-industry-subsidies

Before anyone says anything, this is actually good. Not only would it reduce Pakistan's deficit, but it would also make Pakistani defense companies more competitive, because they'll have to compete for funding their projects (in other words, may the best company win).

Personally speaking, I think Pakistan should bring in domestic private companies for its defense needs, and not just state owned enterprises.

That Guy said:

Before anyone says anything, this is actually good. Not only would it reduce Pakistan's deficit, but it would also make Pakistani defense companies more competitive, because they'll have to compete for funding their projects (in other words, may the best company win).

Personally speaking, I think Pakistan should bring in domestic private companies for its defense needs, and not just state owned enterprises.

Click to expand...

IMO clearest evidence of a genuine commercial offset strategy and possibly even a separation of armed forces requirements from defence industry programs.

Bilal Khan (Quwa) said:

IMO clearest evidence of a genuine commercial offset strategy and possibly even a separation of armed forces requirements from defence industry programs.

Click to expand...

so is this a positive step in your opinion, in the long term. or will it negatively effect the the Armed Forces military development plans?

Salahuddin Ayyubi said:

so is this a positive step in your opinion, in the long term. or will it negatively effect the the Armed Forces military development plans?

Click to expand...

It needs to be assessed on a case-by-case basis. You don't want to run the risk of the industry defining armed forces requirements on the basis of pure commercial need.

This should be accompanied with aggressive diplomatic effoerts on part of gov. and much more aggressive marketing efforts on part of the defence industries. That is the only way to increase exports and that is what will be required to keep those induatrues running and progressing since our domestic needs well not be able to consume all that the industry can or should be producing! They need buyers to make money so that subsidies are not required.

One major step that can be taken would be to make the industry relatively independent in selecting and developing new projects. They should do so by keeping in mind domestic needs as well as export market. The military can evaluate and decide whether they want the product. (Since in an ideal situation the industry is developing the product keeping in mind local needs so it is likely to be selected anyway)

I think it will be a great decision, because it promotes competition but also attract investors to attract in defense sector which in turn will be beneficial for our armed forces to get the best product, but this policy will only be fruitful in the long run so please dont expect it to pay dividends in the short run.

Well private sector should be allowed to invest in the sector if their product is any good it will be bought , but they can sell it to other countries (With approval from Military)