Cabinet okays $1 billion deal for Swedish AWACS
ISLAMABAD (updated on: May 24, 2006, 21:41 PST): The cabinet approved on Wednesday plans for the purchase of a $1 billion airborne early warning surveillance system from Swedish firms Saab and Ericsson to boost its air defences.
"The Federal Cabinet accorded the go-ahead to the Ministry of Defence Production of the proposed purchase of AWACS aircraft from Sweden," said an official statement issued after the cabinet meeting.
Defence group Saab announced in October that it and Ericsson had won the order worth more than 8 billion crowns ($1 billion) from Pakistan.
The statement said defence officials informed the cabinet that Pakistan lacked a reliable surveillance system for its air space.
"In order to safeguard the air defences of Pakistan, it was deemed necessary to have the latest, airborne early warning systems," it added.
The system includes Saab 2000 turboprop aircraft equipped with airborne radar from Ericsson.