Normally: DoD / Airforce or Navy asks Boeing to develop a certain type of Fighter for them and gives them funds for it. Boeing ( it's shareholders ) foot the bill for Commercial Liners, US Gov't or DoD doesn't give Boeing $ to go build a 777 / 787 / 737 / 7x7 or upgraded variant based on what the Airliners are looking for. Now DoD / Airforce may ask Boeing to build KC-46 based on a commercial airliner and give $ funds towards it, but not to go build a brand spanking new Commercial Airliner and turn it to AAR tanker.
Exceptions: In recent times and as in the past, US Gov't has injected $ funds to these firms to keep them running and people employed but did not directly push pressure to hire Republicans or Democrats depending up on who's in the Oval Office.
If Pak Gov't needs to be involved then to extent of what is needed for the PN, not what Commercial Shipping needs. Give the Industry tax incentive, guarantee that local MP and such will not throw hurdles in the build unless palms are greased.
Imagine, Gokal needs to by Ship or have Ships built by Gokal Ship Building, Noon Gov't demands that they will give Gokal lump sum of $Millions for it but they ( Gokal in return must hire 5k noon leaguer. ) Then rinse and repeat same with PPP or any other Party in the Center.
I agree.
Deferring to the private sector also lessens the amount we spend from our budget on maintaining surplus overhead of SOEs. We can use the freed-up resources to buy more equipment, for example.
Surplus capacity is a vital consideration for scale-driven ventures as well, such as nuts and bolts, vehicles, and the like. We can't feasibly maintain this capacity as a SOE unless the SOE functions like a private sector actor or integrates itself with overseas supply chains. In Pakistan's case, this isn't happening.
If we have private sector manufacturers and designers, we also open up the demand for feeder industries at home. E.g., if 'Watan Arms Corporation' bids for a PAF UCAV project, but is told to indigenize a % of the inputs, then Watan will invest in the development. You basically create cascading clusters of R&D and industrial development which, in turn, feeds into education, STEM facilities and labs, and other infrastructure.
It also happens that those critical inputs are not just valuable in Pakistan, but in other places too, so you generate exports, foreign-currency and tax revenue -- the latter returns into the defence budget, and resets the entire cycle.
The pie gets bigger and, as a result, you'll have more investors who'll spend on the R&D and capacity, and more competition. You basically unlock the nation to operate at a higher level.
We're now seeing the Turks test 1,500 hp tank engines and 1-4 kN miniature air-breathing engines for cruise missiles. Where were they 15 years ago? Could anyone have imagined even talking about a Turkish tank engine back then? Now it seems like they're on a roll.
