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PWI | Pakistan Weapons Industry

Actually it's a good question. Privatisation will bring quality and competition as compared to state owned Enterprises. Private companies will invest by borrowing from banks whilst state owned have to wait for govt approvals.
One way to start is by requiring defence imports to come with offsets that feed directly into Pakistan's private defence industry. For example, if we were to buy ECM/EW equipment from Leonardo (Finmeccanica), then we should require Finmeccanica to allocate a portion of the contract to enabling a Pakistani company to produce the goods for the PAF. This however requires more than just recipient companies though, it requires considerable development of Pakistan's STEM education and capacity to absorb the technology.
 
Pakistan Defence Production Potential
Published in Hilal English

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Written By: Commodore Tahir Javed

The rapid changes in politico-military situation across the globe are greatly transforming regional security paradigm. Resultantly, a shift is being observed in the overall national security mechanisms through structural and technological improvements. In the prevailing environment, defence industry has become one of the major pillars of economic pursuit of the nation. In this context, Asia being economically a more vibrant region has now emerged as one of the major markets for defence products. In line with that Pakistan’s defence industry is in the quest to seek international stature to meet the requirements of its armed forces and the growing needs of the regional defence forces. Pakistan’s own defence products being the mix blend of indigenous and foreign technologies offer unique opportunities for international defence collaboration.



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In the present security milieu, international arms trade is a significant economic activity. Though internationally, defence budgets are being curtailed, however, international defence trade is still highly lucrative. As the defence industry is closely associated with many other industrial sectors, defence technologies create synergized effects with other industries, allowing growth and development in technology and services in both public and private sector. Hence, defence industry may not be seen exclusively as military related industry and rather be considered as a multidimensional industry sector that helps in enhancing the economic potential of the country.


In this backdrop, IDEAS-2016 was held at Karachi Expo Centre from November 22 to 25, wherein large number of exhibitors, trade visitors, defence and security analysts, and delegations from various countries participated. It was the best opportunity for our defence industry to showcase their defence equipment to the world for better marketing and signing of MoUs with prospective international partners. It enabled the buyers to evaluate the technology vis-a-vis cost potential of Pakistan’s industry. IDEAS also served as an excellent platform to project the realistic image of Pakistan at international level.


Establishment of DEPO
Upon successful culmination of International Pakistan Navy Defence Show in 1999, the idea was conceived to establish a Defence Export Promotion Organization (DEPO) for promoting the defence export of Pakistan around the globe. Hence, the Pakistan Naval Defence Show was transformed into International Defence Exhibition and Seminars (IDEAS). The first IDEAS was held in year 2000 and is now a biennial event conducted at Karachi Expo Center.



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DEPO was established in year 2000 under Ministry of Defence Production (MoDP) to provide a platform for promotion, facilitation and coordination of defence exports to public and private sectors. Presently, DEPO conducts defence exhibitions, seminars and conferences related to defence exports and facilitate participation of both public and private Defence Production Establishments (DPEs) in foreign exhibitions through pro-active marketing strategy. One of the major roles of DEPO is to conduct IDEAS which is the major defence exhibition of International stature in Pakistan.


IDEAS
The foremost purpose of IDEAS is to provide a single forum for the convergence of international and domestic exhibitors, international delegations, defence and security analysts and top level policy planners for the creation of new opportunities and promotion of mutual cooperation in the field of defence. At the same time, IDEAS provides opportunities to our defence industry, both from public and private sectors, to display their products under one umbrella and interact directly with international community for better marketing, promotion, joint-venturing, out-sourcing and further improving Pakistan’s defence products through collaboration with international partners. IDEAS provides a perfect interactive forum for the defence forces to assess and evaluate the products and technologies which suit their requirements. It presents a unique opportunity to trade visitors for sharing views, gaining an understanding of latest developments of technology in the defence industry and finding innovative and affordable solutions to defence related challenges. The occasion not only serves as an opportunity for net-working and connectivity of defence industry for joint ventures, but also facilitates in achieving national policy of “Arms for Peace” which reflects Pakistan’s principled stand that a more balanced arms equation amongst neighbouring countries acts as an effective counter-balance.


IDEAS-2016
A high profile inauguration ceremony was held on November 22, 2016. Muhammad Nawaz Sharif, the Prime Minister of Islamic Republic of Pakistan was the chief guest. The Minister of Defence Production, Minister of Defence, Chief Minister Sindh, Service’s Chiefs and other dignitaries within and outside Pakistan alongwith exhibitors, trade visitors and foreign delegations attended the ceremony. Upon completion of the inaugural session, the chief guest along with federal and provincial ministers and armed forces’ chiefs visited the stalls.


Being the biggest defence exhibition in Pakistan for showcasing defence equipment, weapons, systems and technologies, it provided opportunities to both national and international DPEs to introduce their technologies and products as well as acquaint them with the opportunities that Pakistan can offer in the different avenues of defence. IDEAS-2016 also provided an excellent forum for Business to Business (B2B) networking, connectivity and meeting opportunities to exhibitors, trade visitors, and foreign delegations from different countries as well as decision makers from Pakistan.


During IDEAS 2016, response from exhibitors, trade visitors and foreign delegations was very encouraging. Total 418 exhibitors from 34 countries participated. 90 foreign delegations including trade visitors from 43 countries visited the exhibition and had numerous meetings with senior civil and military officials of Pakistan.


The exhibition provided a platform for our defence industry to display their entire range of products for better promotion, out-sourcing and marketing with prospective partners. In addition, various Memorandum of Understanding (MoUs) were also finalized with various potential buyers under auspices of MoDP.


Some of the major indigenously developed products were showcased during IDEAS-2016 which included Main Battle Tank Al-Khalid, JF-17 Thunder Fighter Aircraft, K-8, Super Mushshak, Premium Grade Military Hardware, FAC (M), UAVs, Armoured Personnel Carriers and related technology.
The new inventions by POF, HIT, NRTC and GIDS during IDEAS-2016 were:-


• POF brought 3 new inventions during IDEAS-2016.
(1) Heavy Machine Gun (HMG PK-16).
(2) Light Sniper Rifle (LSR).
(3) Electronic Time Super Quick (ETSQ, FUZE).
• HIT showcased 2 new security vehicles:
(1) Armoured Security Vehicle Dragoon (Stanag 4569 Level III).
(2) Armoured Security Vehicle Protector (B-7 Level Protection)
• NRTC exhibited new security system in the defence exhibition:
(1) Jammers RCIED
(2) Intelligent Equipment
(3) Security and Surveillance System
(4) Robotics
(5) Tetra Solution
• GIDS displayed 3 UAV’s during IDEAS-2016 wherein foreign delegation took keen interest in the following displayed UAV’s:
(1) Shahpar UAV System.
(2) Uqab UAV Tactical System.
(3) ISCOUT Mini UAV System.
During IDEAS-2016, 14 MoUs were signed with different contries regarding defence production import protocols with Pakistan.


A seminar was arranged at the Movenpick Hotel wherein eminent speakers – two from Pakistan and three from Russia, China and USA each – participated and shared their views on the seminar’s theme, “Stability and Economics of Regional Peace in South Aisa”. Moreover, different conferences at Expo Centre between companies and armed services were also arranged. Participants presented on how to foster better relations and meaningful association amongst Pakistan defence enterprises and their counterparts around the world, hence allowing the exchange of technological information, volume of research and training aspects of defence experts and academia for high quality and more valuable defence products and knowledge.


Besides participants from Turkey, China and various parts of Europe and Asia, three companies from Russia namely Rosobronexport, Global Security and Russian Helicopter participated during IDEAS-2016. This time nine more countries i.e Luxembourg, Denmark, Belarus, Poland, Czech Republic, Switzerland, Belgium, Nigeria, and Romania participated for the first time in the exhibition. This will usher a new era in collaborating their technology, knowledge and equipment related to defence sector, thus, enhancing the significance of this event for the global defence market.


The objective of the IDEAS-2016 was to showcase own products, demonstrate our organizational skills to plan and execute a grand event of international stature and provide an international platform to convey our viewpoint on security issues concerning Pakistan. Moreover, it is an excellent opportunity for our defence related industry, both in public and private sectors, to display their products and interact directly with the defence industry of the developed world.



 
Pakistan Looks to Aviation in Ambitious Defense Export Push
by
Ismail Dilawar
More stories by Ismail Dilawar
‎March‎ ‎3‎, ‎2017‎ ‎2‎:‎00‎ ‎AM‎ ‎PKT
  • Target hinges on new deals with Turkey, Nigeria and Senegal
  • U.S., Russia and China dominate world defense export market
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The JF-17 Thunder of Pakistan Air Force.

Photographer: VCG via Getty Images
Nuclear-armed Pakistan is seeking to ramp up defense exports amid simmering regional tensions and a surge in the global arms trade.

Pakistan expects to increase defense exports more than 10-fold to $1 billion within the next two years, targeting sales to countries such as Egypt, Turkey and Nigeria. Azerbaijan on Wednesday agreed to buy arms from Pakistan.

The target is “very ambitious” and focused on selling aircraft, Defence Production Minister Rana Tanveer Hussain said in an interview in Karachi. Pakistan’s sales drive comes amid a rising trade deficit and heightened tensions with India, its larger neighbor. Pakistan exported about $63 million of arms between 2014 and 2016, Muhammad Zakir Jafri, the joint secretary at the Ministry of Defence Production, said in a separate phone interview.



A late entry in a market dominated by the U.S., Russia and China, Pakistan’s aspirations are reliant on private sector buy in to an industry that has, so far, been tightly held by military-run factories. It already manufactures the Super Mushshak training aircraft as well as the JF-17 Thunder fighter jet, but will need to deepen ties with countries such as Turkey and Saudi Arabia to significantly expand its reach.


Closely-Guarded Secret
Details on defense exports are closely guarded and Pakistan’s statistics bureau doesn’t include the data when measuring the nation’s trade, which showed a deficit of $2.96 billion in January, widening 75 percent from a year earlier.

More than 20 major public and over 100 private sector firms are engaged in manufacturing defense-related products in Pakistan, according to the website of Defence Export Promotion Organisation.

While major defense products are manufactured by the armed forces-run Pakistan Ordinance Factories, Pakistan Aeronautical Complex, Heavy Industries Taxila, National Radio Telecommunication Corporation and Karachi Shipyard & Engineering Works, the private sector firms produce small supportive equipment only. None of them, according to DEPO website, are manufacturing large items like aircraft.

The introduction of regulatory and taxation incentives would lift the economy by encouraging the private sector to invest in defense manufacturing, said Khurram Schehzad, chief commercial officer at JS Global Capital Ltd.



“Public Private Partnership can be a workable option in increasing the private sector’s capacity to support the government’s export targets,” Schehzad said. “All this requires is a much stronger economic muscle, that is, continuously improving fiscals driven by higher direct income taxes and a deep cut on non-productive spending.”

In the past, Pakistan had focused on exporting small low-value items, but it had upgraded its defense manufacturing to high-value products like such as Al-Khalid tanks and fighter jets, said Muzzammil Aslam, chief executive officer of Invest & Finance Securities Ltd. in Karachi.

“This fetches you a lot of money and really brightens Pakistan’s prospects as a defense exporter.” Even so, analysts like Aslam are doubtful the country can achieve the government’s export target in two years. “I don’t think $1 billion is feasible.”

Fraction of Trade
JF-17 Thunder fighter jets, said Pakistan Minister Hussain. Egypt may be a potential $10 million market for Pakistani weapons, Ministry of Defence Production’s Jafri said, while other major markets include Saudi Arabia, Tajikistan, Uzbekistan, Iraq and Sri Lanka.
 
PM Khawaja Nazimuddin inaugurating the Pakistan Ordnance Factory Wah Cantt in 1951


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German Ministry of Defence officials visit Pakistan for talks on Defence matters, they also visited Defence Production centres of Pakistan.
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Germany can certainly help us in tank technology improvements.

But their technology isn't affordable if we'll use German tech same thing would happen as Arjun Tank and Tejas the cost would be same as the market.
 
But their technology isn't affordable if we'll use German tech same thing would happen as Arjun Tank and Tejas the cost would be same as the market.
True, depends on what we want.
 
True, depends on what we want.
That's why we're looking towards Ukraine and china. Their high tech is much cheaper as compare to western one's. And this cost issue is forcing us to indignise our industry and making us self reliant. In easy words "Necessity is mother of invention".
True, depends on what we want.
 
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That's why we're looking towards Ukraine and china. Their high tech is much cheaper as compare to western one's. And this cost issue is forcing us to indignise our industry and making us self reliant. In easy words "Necessity is mother of invention".
I was thinking more in line with upgrading our tank production line from labour intensive to automation, thus improve on quality and increase productivity.
 
I was thinking more in line with upgrading our tank production line from labour intensive to automation, thus improve on quality and increase productivity.
That's a long run game man. Will take that track soon. IA
 
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