During the colonial rule, sixteen ordnance factories were established in the sub-continent. After the creation of Pakistan in 1947, all those sixteen factories fell to Indian share since none of them were located in Muslim majority areas forming Pakistan.1 The newly-created Pakistan emerged with a fragile state apparatus and rudimentary Armed Forces headed by three British Chiefs for its respective forces, and scarcely had any infrastructure or equipment and no ammunition manufacturing facility, to meet the security challenges confronting its sovereignty, national security and territorial integrity. By October 1947, just two and half months after its creation, in such dire conditions the fledgling state of Pakistan already faced its first major externally-launched security threat namely the Indian aggression against and its occupation of two-thirds of the Jammu and Kashmir State.
After independence, India provided Pakistan with only 6,000 tons of munitions out of 1700,000 tons in its possession, when it was proportionately entitled to more. The subsequent war in Kashmir pushed Pakistans army into a state of actual imbalance.2 On the economic front, Pakistan faced the same situation. Of its total dues Pakistan received only 147 million pounds sterling, representing 17% of the total balance held by India.3 On an immediate basis, Pakistan had to use almost 70% of that amount in arms purchases to redress this imbalance.