Actual Cost of JF-17 and Indigenous Military Hardware

[MastanKhan]

I think the consideration that we are not manufacturing 100% of its components locally would be making its price higher than if it had been built entirely locally. Engine, Radar, Avionics and Armaments are being purchased from China and other international sources. So may be the price is not as low as I was anticipating.

Sir,

To the contrary, that is the reason the price is low---we are building on an existing infra structure---. There is no overhead cost in this venture.

Just the cost of building a successful jet fighter on our own would have a start up cost of around 15--25 billion dollars even before we saw even one plane in flight---meaning all the equipment was of our own making---.

Tragically the end result would be an obsolete plane right from the gitgo when it goes into production. We have no experience in starting up such a large and expensive venture---.

 

[MastanKhan]

Hi,

We are also over-estimating the profit. The profit won't be that much---maybe break even plus some on the plane itself---remember more planes sold will create more jobs---more people will be partenered---that in itself is the profit---companies are run by the govt care less about profit.

Secondly, in this tight market, some very aggressive marketing would need to be done to sign up some buyers in the first place. So, profit alone is not an issue at all---buying nations would not let you make the profit on the plane---at all. Look at the sale price of MBT 2000.

Once we have some orders at hand---and the price of the aircraft comes down, that in itself is considered profit. There is also a lots of after sales service as well---a lots of goodwill. Look at russia taking back algeria's MIG 29's without playing hardball---.

 

[SBD-3]

One thing to be noted that PAC will not be manufacturing exports varients any time sooner than 2015. those will be made by CAC as PAF will be loaded with local production. so most of the cost increase coming from exchange rate differential (which i believe is the major cause because inflation has historically moved in the gauge of 1-2% in US and other developed countries.) should remain minimal. as no one wants to let its currency appriciate....so I honestly dont see much of this factor as well. So PAF will get 50% of the profit without even making a needle for exports......pretty good deal...isn't it?. The only case PAC would involve is in case of installation of western components in JF which would be a rare case

 

[hazara1993]

plz tell me that Is JF17 is made in pakistan

 

[SQ8]

plz tell me that Is JF17 is made in pakistan

Yes it is, part of it anyway.