Well there has been very bad news lately.With the delay/Cancellation of JF-17 French Avionics.
But one thing that has surprised me very much is the worth of the Contract.I mean 6 Billion Euros that translates into 8 Billion Dollars.
I mean this is very much money.I never even dreamed of PAF having so much money.
So the Question is why Doesn't Pakistan Issue a MMRCA like tender.I mean just put 2-3 billion Dollars more and result would be like a MMRCA tender.I mean if India can buy 126 Euro fighters for 11 Billion Dollars so why can't we buy EF too.I mean 126 EF would surely better than 400 Thunders.What you guys think?
Let us first read the article again:
Quote
PARIS: France's plan to sell 1.2 billion euro ($1.6 billion) worth of military equipment for Pakistan's JF-17 combat aircraft has been held up, a source at President Nicolas Sarkozy's office said on Friday.
Newspaper Le Monde had reported earlier that France decided to suspend the sale of electronics and missiles -- the first section of a 6 billion euro contract -- under pressure from India and uncertainty over Pakistan's finances.
“It's a deal that's not ready from the Pakistani side,” the source said, without giving further details. “For now, the state of the dossier doesn't allow us to carry on with it.”
A consortium made up of French company ATE, arms group Thales <TCFP.PA> and missile manufacturer MBDA was supposed to produce the equipment, Le Monde said. Thales declined to comment.
France was also worried over insufficient protection of its technology, with Pakistan pushing to assemble the equipment on its soil, the paper said.
In February, MBDA said it planned to upgrade India's Mirage 2000 fighters and was looking to expand in India.—Reuters
Unquote.
It is for all to see that article is referring to 1.2-bilion Euros only. Pakistan is also discussing with France for submarines and may be additional mine hunters. Where does it say that entire 6-billion euros is for the Airforce?
One of the reasons sighted is “uncertainty over Pakistan’s Finances”. This is probably the only and the real reason.
Any one who has knowledge of large defense deals would know that very seldom countries dole out “Cash” per say. Nearly all cases involve financing thru soft loans and offsets. The payments are also normally spread over many years.
I have a fair Knowledge of the financing of the Al Yamamah -1, wherein 72 Tornados were supplied to Saudi Arabia in a multi billion pound deal. The deal included training, maintenance, missiles and ordinance; actual price was never officially revealed.
Thus an extremely rich country such as Saudi Arabia did not pay in cash but elected to pay in the form of oil. Entire quantity was sold to Shell by BAE on back to back basis. The payment was spread over a 10 year period; about the same time as the delivery of the aircrafts (first delivery started in 1987). UK gov't provided 1-billion pound guarantee to the BAE as a safeguard against possible default/cancellation by the Saudis.
This is to illustrate that financing of major defense contracts is no simple matter. Majority of Pakistan’s defense acquisitions are either thru US FMS program or thru Chinese gov't soft term loans. French never care too much about political pressure; French government may not be willing to provide financial guarantees. IMO the Indian pressure cited as one the reasons is only a conjecture by Le Monde.
To assume that PAF already has $8-billions and putting aside another $2-3 billions to issue a tender for$11-billion is nothing but a flight of fancy. Finally, on what authority can you claim that 126 EF are better than 400 Thunders?