I know 2 of the OEMs that submitted bids, but I can't mention them at the moment. However, if the PA plays this right, the IFV could be a vehicle (pun not intended) to drive more private sector participation in our defence industry and get us a hefty offset (33%+). From what I was told, the 2 options on the cards are either letting the OEM lease capacity from HIT or set-up a net-new production facility. So, for example, if the PA commits to $2BN in IFV orders, Pakistan could get $650 m back through OEM investment in a local production facility, localization orders, hiring locally, etc. I also think our industry can hit the ground running with military vehicles, so I could see a deal like this generate more activity on top of the contract. The total impact could give have the impact of a 50-60% offset.
Hypothetically, if Norinco Group wins such a deal, then it could be the start of 'CPEC done right.' Basically, we leverage our domestic requirements to attract big-time FDI in technology-centric areas. If "Norinco Pakistan" gets efficient, it could even end up exporting to tanks, IFVs, SPHs, etc to other countries from within Pakistan. We can grow to become the conduit through which China exports arms by getting AVIC, Norinco, etc, to set up subsidiaries that produce in Pakistan.
@iLION12345_1