In its efforts to promote the export of non
traditional items, the present government of Gen. Musharraf has
rightly identified and focused attention on export of defence
products. During the current month Pakistan has finalised 2 accords
for sale of arms produced by Pakistan Ordnance Factories (POF) worth
40 million US dollars.
The Malaysian defence delegation led by its Defence
Minister come to Pakistan during the first week and visited the
Pakistan Ordnance Factories, Wah and examined the entire range of POF
products and appreciated the standard and the accuracy of various arms
and ammunition being produced. On the conclusion of the visit of the
Malaysian defence delegation, two agreements were signed for the
sale/purchase of defence equipment worth $20.9 million.
An official announcement, which gave no detail of
the defence equipment or its total value, said that the two agreements
were signed by senior officials of the Ministries of Defence of
Pakistan and Malaysia. But a foreign news agency quoting Malaysia's
Barnama news agency said that Malaysia was purchasing missiles and
other weapons worth 79.4 million ringget (20.9 million) from Pakistan.
The weapons include anti-tank weapons system costing 30.8 million
ringget and surface-to-air missiles costing 48.6 million ringget.
Later in the second week of the current month, Pakistan offered a 20
million dollars loan to Sri Lanka for the purchase of military
hardware to help her in her battle against Tamil Tiger rebels. The
credit line was offered during a visit earlier this month by
Pakistan's army chief of staff, Mohammad Yusaf Khan, and head of
military intelligence Ehsanul Haq, an official announcement said.
Besides meeting the 100 per cent demand of Pakistan
army's conventional arms and ammunition and partially catering to the
needs of Pakistan Navy and Air Force, POF has been exporting arms to
many countries of the world for the past many years. However the first
ever Pakistan International Defence Exhibition named as "IDEAS
2000" held in Karachi in November last year provided the real
momentum. It opened a new chapter in the history of defence production
industry in Pakistan as it formally entered into the era of
commercialisation. The exhibition was visited by over 1000 foreign
guests including 22 defence ministers, chief and deputy chief of staff
and services chiefs.
Briefing newsmen on this occasion the chief
coordinator of the exhibition, Maj. Gen. S. Ali Hamid had said that
this exhibition would create an awareness of Pakistan's defence
manufacturing capabilities amongst foreign countries while it would
help Pakistan to invigorate commercial and business activity. Gen.
Hamid further explained that the very strong positive response to
IDEAS 2000 visible from high profile composition of the delegations
from 34 countries and the interest shown by the exhibitors clearly
indicates their interest in our country and the status Pakistan enjoys
in the world.
Giving details about the development of Pakistan's
Arms industry he said, that until 1970 Pakistan focused on meeting
basic requirement of small arms, ammunition, repair and overhaul of
equipment. During 1970-1990 Pakistan upgraded its major weapon system
like Tanks, Ships, Aircraft and Radar etc. From year 2000 onwards
Pakistan is expanding into the International Market by providing
incentive to the private sector to enter defence manufacturing sector.
The exhibition would not only boost Pakistan's defence exports but
would also enhance the country's image on the economic front, he
added.
Although the capability of the 13 selfcontained
units of POF, manned by a workforce of 30,000 can well be gauged from
the country's defence might, it has helped build. The perception of
its strong export potential is based on the reputation it has
established with discriminating buyers in the world market for its
exclusive range of high quality products, including, besides
ammunition, engineering goods and small and slightly heavier arms. On
its increasingly successful export performance, as seen in the sale of
its surplus defence products to not only some of the Middle East
countries, but also expending beyond to Europe, Africa, the Far East
and reaching as far as the United States, Pakistan has attained a
distinguished position among the reliable exporters of a number of
high quality defence industry products.
The happy tidings of opening of the doors of
defence production and export to the private sector, as given by
Pakistan Ordnance Factories Chairman Lt. Gen. Abdul Qayyum in his
address to the members of the Chambers of Commerce and Industry,
Karachi, should mark the addition of a new dimension to
result-oriented private-public partnership. Coming at a time when the
industrial excellence of POF has earned recognition from those who
count in the production of arms and ammunition and other requirements
of the defence forces anywhere, it is also an acknowledgment of the
business expertise and acumen of the private enterprise in Pakistan.
Finally abandoned now is that senseless, outdated policy under which
for reasons other than their capability to handle it on purely
commercial lines, private entrepreneurs were kept at a distance from
this sensitive and sophisticated industry. It will also be noted,
however, that the exceptional performance of POF, both in terms of
quality and economic viability, has discounted the exaggerated
perception of the public sector's total failure in all commercial
ventures. For, not only have the sophisticated defence goods produced
at the POF factories established their excellence at home but, to an
considerable extent, outside the country also. However, now that POF
has made its mark on the country's export front too to the extent of
competing with the traditional suppliers of arms and ammunition from
advanced countries, it has naturally felt the need of seeking
cooperation of the private enterprise, for understandable reasons, in
this challenging commercial endeavour.
Viewed in this perspective, POF's eyeing the
international market for its products, will appear to be motivated by
also ideas of availing of its capability to boost the country's export
earnings. And this is not just a vague notion, but happens to be the
logical corollary to the encouraging results of the initial efforts in
that direction. An idea of the tremendous potential for Pakistan in
the world trade of defence products may be had, among other things,
from the interest evinced during Chief Executive General Pervez
Musharraf's recent visit to three Middle East countries. As it is, POF
products have already found their way into some 10 countries of the
world, thus setting the pace for further growth. It will also be noted
that had it not been for the UN ban on export of arms to Libya and
some other Muslim countries, the actual foreign sale of POF products
would have risen much higher.
