Why Pakistani investors have little interest in the defence sector?

[RAMPAGE]

Pakistan is a huge market for Military equipment manufacturers but there are very few local private companies producing military hardware.

The Ministry for defence production can incourage investors to invest in govt owned reputable R&D organizations such as NESCOM/PAC.

Take a look at this,

Pakistan's Ministry of defense production
launched a Research and development
project for completely indigenous
production of a GSR in collaboration with
EME and other departments of NUST.
A total of 39 Million Rs were allocated for
R&D. The preliminary/Theoretical work was
completed within an year with 20+ PHD
students working on the project. The project
was so successful that AESA and PESA
technologies seemed conceivable within
Pakistan's own expertise and resources.
International Microwave journal IEEE
received and published dozens of research
papers about Radar technology from the
students working on this project. See
project 274 on NUST website
NESCOM was given the task of further
developing the AESA , PESA related research
which branched out of this project. 300
Million USD were allocated for Pakistan's
own dedicated Electronics R&D labs near
Islamabad which had to be a subsidiary of
NESCOM.
Unfortunately the labs never materialized in
its desired form. Much of the funds
dedicated for the lab were diverted to other
civilian projects by PPP Prime minister Raja
Pervez Ashraf.

Such inconvenience can be avoided if we stop relying on public funds.

We should learn from Sweden and Israel.

I wonder if the patriotic staff of PDF can use the platform to promote our suggestions so they may reach the authorities.

@waz @Horus @ @MastanKhan @DESERT FIGHTER @HRK

 

[Sine Nomine]

Many years back a person designed fuel tanks for jets,after testing and evaluation they were found as good as imported ones,but not a single batch was ordered because that person was not going to give any kick backs...

 

[HRK]

many reasons such as

• Huge Investment Requirements
• Return on Investment not guaranteed
• Lack of 'knowledge base' business enterprises
• Technology issues
• Extraordinary strictness of Rules & Regulations (to get one entity registered as vendor or supplier take minimum 6 month to a year even for ordinary items such as 'office stationary')
• Relatively smaller market size
• No or little access to dual use technology
• Most importantly business philosophy of our business class

(Trader mentality, Lack of Technological & Scientific Education)

 

[Sage]

Many years back a person designed fuel tanks for jets,after testing and evaluation they were found as good as imported ones,but not a single batch was ordered because that person was not going to give any kick backs...

Some more details please !

 

[Echo_419]

Pakistan is a huge market for Military equipment manufacturers but there are very few local private companies producing military hardware.

The Ministry for defence production can incourage investors to invest in govt owned reputable R&D organizations such as NESCOM/PAC.

Take a look at this,



Such inconvenience can be avoided if we stop relying on public funds.

We should learn from Sweden and Israel.

I wonder if the patriotic staff of PDF can use the platform to promote our suggestions so they may reach the authorities.

@waz @Horus @ @MastanKhan @DESERT FIGHTER @HRK

Becuz pakistani budget is small

 

[Imran Khan]

i wish we become social welfare state not security state

 

[RAMPAGE]

many reasons such as

• Huge Investment Requirements
• Return on Investment not guaranteed
• Lack of 'knowledge base' business enterprises
• Technology issues
• Extraordinary strictness of Rules & Regulations (to get one entity registered as vendor or supplier take minimum 6 month to a year even for ordinary items such as 'office stationary')
• Relatively smaller market size
• No or little access to dual use technology
• Most importantly business philosophy of our business class

(Trader mentality, Lack of Technological & Scientific Education)

Yaar we have our billionaires. Then there are the wealthy dual nationals looking for investment opportunities in Pakistan.

Risks are envolved everytime you launch a new product. Return is not obviously not guaranteed.

Please elaborate point 3.

Yara how can there be technology issues when our engineers are confident that they can develop an actual AESA radar? there are always technical hurdels but they can be overcome.

That can be remedied.

Not since our partcipation in war on terror.


I thought military tech is often utilized
in commercial/civilian products.

Forgive my ignorance. I am but a humble student.

 

[PWFI]

Becuz pakistani budget is small

Genius he's talking about "investement" nothing to do with budget. Btw the toilets problem in India is also linked with small budget?

 

[Echo_419]

Genius he's talking about "investement" nothing to do with budget. Btw the toilets problem in India is also linked with small budget?

I was gonna reply with a srs answer but your last statement showed that you don't have enough processing power to comprehend that

 

[Georgeclark]

Genius he's talking about "investement" nothing to do with budget. Btw the toilets problem in India is also linked with small budget?

Why bring in toilets every time?? cause you do not have anything else to say ?? Pakistan doesn't lag behind in that, it too comes at 3rd place with 41 Million without toilets, so its better not to get into it. Plus India is doing better to improve in it.

He is right in it, budget is a problem who is going to buy the products its the Army not the people, if the budget is good then they will buy more stuff. Any defense Company needs atleast a 1-2 Billion $ Investment, if its not getting the returns its of no use, plus other countries will only buy it after the sole developer uses it.

 

[PWFI]

I was gonna reply with a srs answer but your last statement showed that you don't have enough processing power to comprehend that

I don't need any explications from brainwashed troll, who don't no the difference between "budget" and "investement".

 

[Armstrong]

I don't need any explication from brainwashed troll, who don't no the difference between "budget" and "investement".

Aaaaj kal France waleiii Pakistani humeinnn koi lift hiii nahin karvateiii !

 

[PWFI]

Why bring in toilets every time?? cause you do not have anything else to say ?? Pakistan doesn't lag behind in that, it too comes at 3rd place with 41 Million without toilets, so its better not to get into it. Plus India is doing better to improve in it.

He is right in it, budget is a problem who is going to buy the products its the Army not the people, if the budget is good then they will buy more stuff. Any defense Company needs atleast a 1-2 Billion $ Investment if its not getting the returns if of no use, plus other countries will only buy it after the sole developer uses it.

Why cry your mama each time when we troll some brainwashed indians, while they can speak from their behind all the time? Made in pakistan mean half the cost of the same product of chinese origin or any other, then why would pak army will purchase chinese or any other product when it's disponible in pakistan with half of the cost? Which mean the budget is not the problem!

Aaaaj kal France waleiii Pakistani humeinnn koi lift hiii nahin karvateiii !

Mon cherie, i read almost all of your posts

 

[Georgeclark]

Why cry your mama each time when we troll some brainwashed indians, while they can speak from their behind all the time? Made in pakistan mean half the cost of the same product of chinese origin or any other, then why would pak army will purchase chinese or any other product when it's disponible in pakistan with half of the cost? Which mean the budget is not the problem!

What do you think, what would the defense companies take Interest in manufacturing ??

 

[ArsalanKhan21]

Pakistan investors wants low investment and huge returns and are more interested in distributor licenses of imported products. Defense industry is mostly captive market selling products to the Pakistan Armed forces where bribes and commissions are expected to be paid. If the Generals don't like you for any reason you will not be able to sell your products.