IDENTIFICATION OF BARRIERS TO MARKET GROWTH OF PAKISTAN DEFENCE EXPORTS AND SUGGESTED MEASURES

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 Outdated technology, international restrictions, quantum of financial resources, absence of up to date market intelligence and lack of access to data base of defence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.