Abstract:
Identifying the barriers to the market growth of Pakistan Defence Exports and
suggesting the remedial measures for its improvement will help in understanding issues
and may guide actions of policy makers to capture the larger defence market share.
Pakistan’s defence industry is a national asset and directly contributes to national
security. At the same time, this segment can make very significant contributions to
economy. Pakistan’s defence production organizations have the surplus capacity to
manufacture products and provide services in order to earn foreign exchange for national
development. The barriers to the market growth of Pakistan defence exports have been
explored in detail to reach the root causes. A Questionnaire based feedback from defence
production organizations (public & private sector), defence product establishments and
the foreign defence exhibitors / industry has helped to identify barriers and formulating
suggestions for the improvements in defence exports.
Outdated technology, international restrictions, quantum of financial resources,
absence of up to date market intelligence and lack of access to data base of defence
vendors, weak R&D infrastructure, security problems, political instability, adhocism in
management and bureaucratic culture are the main barriers identified by public and
private sectors as well as foreign defence exhibitors.
Pakistan’s defence exports can be enhanced by joint ventures with friendly
countries, privatizing of major portion of defence industry, implementing of ISO
Standards in all defence production organizations, commercializing of defence
production organizations, exporting traditional products/services to non-traditional
market, increasing the range of products, undertaking indigenization programs and
achieving self-sufficiency in raw materials and by improving law and order situations
and political stability. By addressing these barriers Pakistan would not only be able to
achieve a desirable goal for earning foreign exchange, it would help to meet the demands
of Armed Forces and stabilize the economy by spending less on defence imports. Further,
Pakistan can become an international player in exporting defence products ranging from
small weapons to training aircrafts and tanks.
