Get Pakistani Banks to fund the R&D for new generation of Pakistani weapons

[RAMPAGE]

Instead of delivering profits to foreign weapon manufacturers by buying their equipment, Pakistan Army should approach local Pakistani private banks for funding their defence projects.

As we know, Pak-China Joint Fighter 17 has already received export orders and is expecting more. It makes more sense to offer it with Pakistani AAMs and munitions. A credible project like this can attract investment from local banks.

Al Khalid tank, Baktar Shikan ATGM and Anza SAM manpads are also an export success and the army is now looking to buy their next generation from abroad when instead they should have been developed locally.

The Army can also get loans against its budget and use it on R&D for the next generation weapons. This way, they will get the technical know-how, save FDI and get to keep the profits inside the country.

Looking forward to your replies.

@HRK @Jazzbot @Oscar @MastanKhan @araz

 

[Skywalker]

Askari bank is big enough to fund these projects but...there is big big question mark.

 

[Blue Marlin]

how are they going to get their money back?
trying to export it will not happen as china has the cheap market covered and the the usa and europe has the high end market covered.

 

[RAMPAGE]

how are they going to get their money back?
trying to export it will not happen as china has the cheap market covered and the the usa and europe has the high end market covered.

Easy! The Army will save significant amount of money by producing cheap weapons and give back a portion of that money as interest along with the original loan.

 

[HRK]

Instead of delivering profits to foreign weapon manufacturers by buying their equipment, Pakistan Army should approach local Pakistani private banks for funding their defence projects.

As we know, Pak-China Joint Fighter 17 has already received export orders and is expecting more. It makes more sense to offer it with Pakistani AAMs and munitions. A credible project like this can attract investment from local banks.

Al Khalid tank, Baktar Shikan ATGM and Anza SAM manpads are also an export success and the army is now looking to buy their next generation from abroad when instead they should have been developed locally.

The Army can also get loans against its budget and use it on R&D for the next generation weapons. This way, they will get the technical know-how, save FDI and get to keep the profits inside the country.

Looking forward to your replies.

@HRK @Jazzbot @Oscar @MastanKhan @araz

Why a bank would finance a R&D project that too a military related R&D which are consider as high risk project ... ???

the best banks can do is to offer loans to International buyers at some discounted rates to facilitate the buyer & the Industry. BTW Government was planing to launch a Pakistani Exim bank but not aware about the current status of it ....

 

[RAMPAGE]

Why a bank would finance a R&D project that too a military related R&D which are consider as high risk project ... ???

the best banks can do is to offer loans to International buyers at some discounted rates to facilitate the buyer & the Industry. BTW Government was planing to launch a Pakistani Exim bank but not aware about the current status of it ....

I was afraid that someone would say that so I also suggested that the Army can ask for a loan against its budget. That loan can be utilized to fund R&D for weapons that the Army would have to procure in future from a foreign arms manufacturer.

 

[Bagha]

Forcing banks to fund things is never a good thing . It should be left to the bankers to decide if the loan is viable or not.
Playing with important financial istruments like bank can cost your economy a great deal. You probably won't wan't a recession. IMO , the gov't should earmark a percentage of GDP on R &D . Or govt. can also apply R&D cess on common goods.

 

[HRK]

I was afraid that someone would say that so I also suggested that the Army can ask for a loan against its budget. That loan can be utilized to fund R&D for weapons that the Army would have to procure in future from a foreign arms manufacturer.

this suggestion is different than a Bank Financed R&D project in which Bank will have to share most of the risk as a Principal Financier of the project.

 

[RAMPAGE]

this suggestion is different than a Bank Financed R&D project in which Bank will have to share most of the risk as a Principal Financier of the project.

I suppose it is. What do you think of this one?

 

[Imran Khan]

we need food roads hospitals schools more then defence projects

 

[HRK]

I suppose it is. What do you think of this one?

banks do provide loans to military & Government Institutions against State Guaranty or Pledge of Assets or some other form of arrangements as agreed, latest example of such loan is the Egyptian purchase of Rafale Jet with the loan provided to them by French Banks, so nothing new here

 

[RAMPAGE]

banks do provide loans to military & Government Institutions against State Guaranty or Pledge of Assets or some other form of arrangements as agreed, latest example of such loan is the Egyptian purchase of Rafale Jet with the loan provided to them by French Banks, so nothing new here

So it can be done. BTW congratulations on becoming a Mod.

 

[HRK]

So it can be done. BTW congratulations on becoming a Mod.

thnx ...

on THEORETICAL GROUNDS yes, it is possible like facilitating the buyer by offering loans which will increase the sales of Pakistani weapon manufacturers from which they will obviously earn some profit so the part of that profit could be utilized for R&D, on practical grounds this approach have its own set of difficulties......

 

[rockstar08]

the banks rely on the Investments itself ... Military Projects wont guarantee any return ...
better idea would be Pakistani Millionaires can start private companies and invest in R&D ... that will make more sense

 

[flameboard]

why? banks may invest in stocks but funding research is not a sure thing