Get Pakistani Banks to fund the R&D for new generation of Pakistani weapons

[shah1398]

Rather than (sort of) forcing banks to invest in R&D projects the defense ministry should come up with lucrative offers for investors which might bring in not only banks but other investors/companies to join hands in these projects. To start with they should direct extra funding to universities esp the ones in Military fold like NUST, Air Univesity, Bahria Univesity and likes of PAF KIET and IST etc.

 

[Icarus]

Banks will not fund any project that has a low rate of return and military projects have a notoriously low rate of return. If you ever visit HIT or POF, you will see several types of armoured fighting and support vehicles as well as several hundred types of small arms that were tested but never made it into service. That's why military R&D is either financed by the government or by private firms such as SATUMA, GIDS and Integrated Dynamics.

 

[SSGcommandoPAK]

Instead of delivering profits to foreign weapon manufacturers by buying their equipment, Pakistan Army should approach local Pakistani private banks for funding their defence projects.

As we know, Pak-China Joint Fighter 17 has already received export orders and is expecting more. It makes more sense to offer it with Pakistani AAMs and munitions. A credible project like this can attract investment from local banks.

Al Khalid tank, Baktar Shikan ATGM and Anza SAM manpads are also an export success and the army is now looking to buy their next generation from abroad when instead they should have been developed locally.

The Army can also get loans against its budget and use it on R&D for the next generation weapons. This way, they will get the technical know-how, save FDI and get to keep the profits inside the country.

Looking forward to your replies.

@HRK @Jazzbot @Oscar @MastanKhan @araz

You missed K-8s and Super Mushaks .

 

[wiseone2]

Easy! The Army will save significant amount of money by producing cheap weapons and give back a portion of that money as interest along with the original loan.

what is the total Pakistani budget for purchasing weapons ?

 

[RAMPAGE]

Banks will not fund any project that has a low rate of return and military projects have a notoriously low rate of return. If you ever visit HIT or POF, you will see several types of armoured fighting and support vehicles as well as several hundred types of small arms that were tested but never made it into service. That's why military R&D is either financed by the government or by private firms such as SATUMA, GIDS and Integrated Dynamics.

But the army can get a loan against its budget and use it on R&D.

Suppose the army requires a fire and forget ATGM and has to operationalize it in 1.5 years. It has allocated a part of its budget for the purchase. The army can now request a loan from a private bank against its budget and use it on R&D for the missile. The amount of money (or a part of it) saved by producing and buying a local and relatively low cost missile will be given back to the lender as interest along with the original amount.

This way we can get the technical know-how and also save our FDI.

 

[SSGcommandoPAK]

Instead of delivering profits to foreign weapon manufacturers by buying their equipment, Pakistan Army should approach local Pakistani private banks for funding their defence projects.

As we know, Pak-China Joint Fighter 17 has already received export orders and is expecting more. It makes more sense to offer it with Pakistani AAMs and munitions. A credible project like this can attract investment from local banks.

Al Khalid tank, Baktar Shikan ATGM and Anza SAM manpads are also an export success and the army is now looking to buy their next generation from abroad when instead they should have been developed locally.

The Army can also get loans against its budget and use it on R&D for the next generation weapons. This way, they will get the technical know-how, save FDI and get to keep the profits inside the country.

Looking forward to your replies.

@HRK @Jazzbot @Oscar @MastanKhan @araz

This seems to be a good idea . Sometimes institutions have great designs and ideas in there minds but they cant implement them due to lack of funds . The Armed forces of Pakistan can make wonders when they know that they have funds behind them to complete the project . The banks should invest in the Defense sector , I am sure by this method both the banks and the army will be happy , Banks will get the loans back with some profit and the military will make new stuff for its use and exports . But i don't think the banks will do that as they don't seem to trust the institutions in there country and don't wanna take any chances . The government should give this idea to the banks and also assure the banks that no cash of there would be wasted or misused .

 

[AZADPAKISTAN2009]

Back 60's and 70's Pakistani banks were quite , interested in investment in R&D
However western governments did not appreciate the growth of Pakistani Banks in their turf , so they were forcefully closed down due to

"Allegations alone" by large accounting firms, collaboration with Newspapers and investigative report

Long story short !!! They could not figure out , the management structure of bank / regulatory control so they decided to close it down and confiscated $$$$$$$$$$

They alleged that the Bank was running off "Deposits" which was all Oil money ? lol I mean so what ? It was owned by UAE rich princes and kings

It was alleged the bank is not running of money made from investment ? OK why would anyone invest if they moeny from Oil owners is enough ???


Example: of Pressured closure of Pakistani Banks
>Largest Bank by todays standards it would have had 80 billion in reserves by now 2015

Bank of Credit and Commerce International - Wikipedia, the free encyclopedia

The Bank of Credit and Commerce International (BCCI) was an international bank founded in 1972 by Agha Hasan Abedi, a Pakistani financier. The Bank was registered in Luxembourg with head offices in Karachi and London. A decade after opening, BCCI had over 400 branches in 78 countries, and assets in excess of US$20 billion, making it the 7th largest private bank in the world

(Many Gulf prince/ leaders held ownership of the bank)


Lets read the passage from wiki

In 1982, 15 Middle Eastern investors bought Financial General Bankshares, a large bank holding company headquartered in Washington, D.C. All the investors were BCCI clients, but the Fed received assurances that BCCI would be in no way involved in the management of the company, which was renamed First American Bankshares. To alleviate regulators' concerns, Clark Clifford, an adviser to five presidents, was named First American's chairman. Clifford headed a board composed of himself and several other distinguished American citizens, including former United States Senator Stuart Symington. In truth, BCCI had been involved in the purchase of FGB/First American from the beginning. Abedi had been approached about buying it as early as 1977, but by this time BCCI's reputation in the United States was so poor that it could not hope to buy an American bank on its own (as mentioned above, the OCC was adamantly opposed to BCCI being allowed to buy its way into the American banking industry). Rather, it used the First American investors as nominees. Moreover, Clifford's law firm was retained as general counsel, and also handled most of BCCI's American legal work. BCCI was also heavily involved in First American personnel matters. The relationship between the two was so close that rumors spread BCCI was the real owner of First American.

The real problem was Bank from Pakistan/and Arab investors was trying to break into US market hmmmmmmmm
Regulators did not wanted Arabs/Pakistanis to own banks via BCCI in USA

Today!!! ... 2015 major US corporations routinely open / register their main office on tiny island nations to avoid paying corporate taxes (All legal) however if a Pakistani Owned bank/ Arabs created a bank which was spread in multiple nations it was a problem to them which is why they were closed down (BY force)



Owner of Pakistani Bank - > Agha Hasan Abedi

Early banking career
Agha Hasan Abedi was born in a well off Shia Muslim family in Lucknow, British India and migrated to Pakistan after formation of Pakistan in 1947. Beginning his career with Habib Bank before independence, he brought about significant changes in Pakistan's banking culture when he founded the United Bank Ltd (UBL) in 1959 in Chittagong. Starting as its first general manager, he quickly rose to the position of president and chairman of the board of directors. Under his stewardship, UBL became the second largest bank in Pakistan. Mr Abedi introduced a host of professional innovations, including the concept of personalised service and banking support to trade and industry, paying particular attention to the bank's overseas operations. One of the first to comprehend the opportunities offered by the oil boom in the Persian Gulf, Mr Abedi pioneered close economic collaboration in the private sector between Pakistan and the United Arab Emirates (UAE). The UAE President, Sheikh Zayed bin Sultan Al Nahyan, extended his patronage to UBL operations both in Pakistan and abroad.

BCCI years
When banking was nationalised in Pakistan in 1972, Mr Abedi founded the Bank of Credit and Commerce International with the Bank of America NT & SA as a major shareholder. Registered in Luxembourg, the BCCI began its operations from a two-room head office in London. Over the years, it developed into a worldwide banking operation with branches in 72 countries and 16,000 employees on its payroll. Mr Abedi was personally responsible for inducting a large number of Pakistanis into the field of international banking and almost 80 per cent of the BCCI's top executive positions at the head office and in branches in various countries were held by Pakistanis. Mr Abedi severed his connection with BCCI in 1990 after suffering a heart attack and led a retired life in Karachi until his death of heart failure at Karachi's Aga Khan hospital in 1995.





Now Habib bank is a story where government nationalized the asset in 70's
Example 2: Habib Bank
> Bank was nationalized and original owners were not allowed to have stake in it ? lol in 70's probbaly Bhutto


Pakistani government did not do enough to protect closure of Bank of Credit and Commerce International (BCCI) , and also did not help with interfering with Habib bank's operations

Do you think western governments would not sanction Pakistani Banks the moment they started to finance purchase of Aircraft carriers or Stealth jet program in Pakistan ?

Pakistanis can't even send more then 300-3000 , per month any where , do you they will agree to Pakistani Banks , supporting Pakistani Banks , financing the nuclear reactor in Pakistan ? Or that SAM missile purchase ?


Mysteriously the firm (Delloite) , who took part in closing Pakistani owned bank , also sued a Bank in UK Bank of England, but later "retreated" the Lawsuit of 850 million pounds because it was against "NATIONAL INTEREST", and instead that company paid the bank 73 million in legal fee charges


So a bank Owned by UK bodies was spared while FBI , UK, hong kong all collaborated to close down BCCI