Pakistan Defence Industry Exports

China and its long time ally Pakistan jointly celebrated 60 years of their completion of diplomatic relations, declaring 2011 as the ‘Friendship Year’ and terming their relationship ‘higher than the Himalayas, deeper than the oceans and sweeter than honey.’ While China continues to aggressively push forward defence exportsand infrastructure development in India’s immediate neighbourhood, India has been extremely cautious in exporting defence related material to its neighbours. While changes in the policy are being made, the pace of implementation is still very slow. China now stands as the fifth largest arms exporter in the world mainly due to its exports to Pakistan. Even Pakistan has started arms exports in the region; a development India needs to take note off.

Carrying of Arms by a tribal in the Federally Administered Tribal Areas (FATA) is part of their ancient culture. Pakistan has a long history of arms manufacturing as a cottage industry in the little town of Darra Adam Khel a few miles from Peshawar. Pakistan began with virtually no production capability but now its arms industry has come a long way from making small arms. The US and Western arms embargoes imposed on Pakistan in its critical stage proved to be a blessing in disguise. The problems Pakistan faced in the aftermath of the Presler Amendment of 1992 forced Pakistan to rely on indigenous development and production of defence equipment. Pakistan now boasts of a powerful defence equipment industry with technology and research base, developing, manufacturing a wide array of weapon systems such as modern fighter jets, battle tanks, armored personnel vehicles, frigates, submarines and unmanned aerial vehicles (UAVs).

Pakistan is becoming an increasingly important player in the world arms industry with a distinct focus towards export. Pakistan’s major defence manufacturing companies are owned and operated by ‘Pak military’. It has over 20 major Public Sector Units (PSUs) and over 100private sector firms. PSUs undertake production and assembly of weapons and equipment where as private sector firms supply components. Major PSUs include Pakistan Ordnance Factory (POF), Heavy Industries Taxila (HIT), Pakistan Aeronautical Complex, Karachi Shipyard and Engineering Works (KSEW).

Joint development and production has been undertaken in recent years especially with China. International Defence Exhibition Seminar (IDEAS) is now a regular affairto encourage exports by way of showcasing its defence industry with foreign companies participating. Exhibitors come from countries with a strong base ofmilitary hard ware like US, China, Russia, UK, France, Germany, Italy, South Africa, South Korea, Turkey and Ukraine. IDEAS 2012 is scheduled in Oct – Nov.

Pakistan has been able to boost its capabilities for high technology aerial warfare, to enable response to the new emerging challenges to combat insurgents especially when the Americans are reluctant to give ‘Drones’ or the Drone technology.  Pakistan’s UAV industry is growing exponentially with demand explosion for Drones by foreign companies. Pak UAV companies specialise in air frames, launch and propulsion systems, signal intelligence and training simulators. In IDEAS 2008, Maj Gen Mohammed Farooq, DGDEPO (Defence Export Promotion Organisation) claimed that Pakistan’s defence exports stood around USD 300 million with exports increasing significantly toSouth Asian, Middle Eastern and African countries significantly. Sri Lanka has also been purchasing ammunition, weapons including Al Khalid tanks and UAVs from Pakistan. In reply to a question, General Farooq stated: ‘Pakistan’smilitary exports were higher than India’s; India started working on Arjun Tank but is yet to induct it in its Army, while Pakistan has built and handed over Al Khalid tank to the Pakistan Army’.

Pakistan defence industry is now firmly eyeing foreign exports. Joint development / production with China of Al-KhalidTank, Al- Zarrar Tank, Agosta Submarine, Mushshak Aircraft, JF-17 Aircraft, Transport aircraft, different variants of APCs, Frigates and UAV variants, with Chinese collaboration are examples towards self-reliance in the field of defence production. JF-17 fighter aircraft a Joint venture with China has potential buyers likeBangladesh, Venezuela, Morocco, and Turkey and is being projected to be sold in developing countries.

In contrast, India is yet to achieve desired levels of indigenous defence capability. India’s defence exports arehampered both by policy constraints as well as production capabilities. The LondonSchool of Economics in a recent study forecasts that India is far from its goalof emerging as a ‘Regional Power’ and a future power in the next 20 years. India remains overwhelmingly dependent on foreign vendors and now stands as the world’slargest arms importer. Pakistan, on the other hand is focusing on defence exports in the region which India needs to counter. With increasing Chinese influence in the region as exemplified by Chinese economic and defence ties with Pakistan, Bangladesh, Nepal, Sri Lanka and Maldives and a growing Pakistan defence industry India needs to be wary. India’s Defence Minister, Shri AK Antony has stated that ‘the increasing nexus between China and Pakistan in the military sphere remains an area of serious concern’. This concern needs to be addressed by focusing on indigenous defence capabilities and formulating policies for export of defence related equipment.

Col RC Patial is a defence analyst