Procurement of New Equipment to Drive Defense Industry in Pakistan: Ken Research

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The Pakistan Armed Forces are the military forces of Pakistan. They are the sixth largest in the world in terms of active military personnel and the largest among Muslim countries. The armed forces comprise three main service branches: army, navy and air force.  The defense industry of Pakistan is created to promote and coordinate the patchwork of military production facilities that have developed since independence. The industry is promoting scientific, technological, industrial and economic advancement in the country by imparting training and providing employment to thousands of Pakistanis. The Ministry of Defense (MoD) plays a major supporting role in the Pakistan Armed Forces. Some organizations and services are under the MOD: joint chiefs of staff committee, inter-services public relations, inter-services selection board, national defense university, strategic plans division, national engineering and scientific commission, defense science and technology organization, air weapons complex, national defense complex, kahuta research laboratories, military engineering services, inter-services intelligence directorate, Pakistan army, national guard, frontier works organization, Pakistan air force, Pakistan Navy, Pakistan marines and maritime security agency etc.

Pakistan economy has become one of the top five emerging the world. Protecting from the external threats and maintaining the internal stability, the government allocated also recently allocated 3.4 percent of its GDP towards defense purposes during the historic period. Pakistan budget allocation for defense rises by 19.6% in 2018-19 fiscal years. The budget included Rs 1.1 trillion (about $9.6 billion) in defense and security-related expenditures. The allocation represents the highest growth in the defense budget. The defense budget’s details show that maximum growth (31%) has been recorded in employee-related expenses. Currently, the defense budget has been given to navy 21.4 % increase, followed by army 19.7 %, air force 19.5% and inter-services institutions 18.6%.

According to study, “Future of the Pakistani Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2023” some of the major companies that are currently working in the Pakistani defense industry Karachi Shipyard & Engineering Works, Pakistan Aeronautical Complex, Pakistan Ordnance Factories, Pakistan Space and Upper Atmosphere Research Commission, Heavy Industries Taxila, The Heavy Mechanical Complex, Surveillance and Target Unmanned Aircraft, Boeing, Raytheon, Lockheed Martin, Chengdu Aircraft Industry Group, Turkish Aerospace Industries, Aselsan.

Pakistan is the ninth importer of major weapons in the world, but the country has witnessed a staggering 36 percent decrease in arms imports during the last five years. China, USA, and Russia are the top three exporters of weapons to Pakistan. China is the top exporter of weapons to Pakistan. Moreover, Pakistan defense industry exports some defense equipment including missiles, tanks, artillery guns, and spare parts to more than 21 countries like Malaysia, Indonesia, Thailand, Turkey, Iran, Saudi Arabia, Morocco, Libya, Mauritius, Bangladesh, Sri Lanka, and Myanmar.

In 2018, Pakistan secured sales worth $93.7 million. The most significant aspect of the unprecedented growth of Pakistan’s defense industry is the sharp decrease in its reliance on weapons acquired from foreign manufacturers particularly the US. Pakistan is anticipated to invest USD 66.9 billion cumulatively over the forecast period, compared to USD 42.3 billion spent by the end of 2018.  In the near future, Pakistan will supply its 8 super mushshak trainer aircraft to Nigeria, 10 to Qatar and 52 to Turkey. As well as Pakistan’s defense products will soon net in $1 billion over the next two years. Moreover, expenditure is anticipated to focus more on the procurement of equipment to augment air defense capabilities, enhance the operational capabilities of the current fleet of naval vessels, and better communication and surveillance systems. Cumulative expenditure on the procurement of advanced military hardware is projected to stand at USD 25.6 billion over the next five years.

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https://www.kenresearch.com/defense-and-security/defense/pakistani-defense-industry/156568-16.html

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