Pakistan Eyes Weapons Exports to Offset Defence
Spending
Nadeem Iqbal
ISLAMABAD:
After attaining self-sufficiency in weapons manufacture and subsequently
exporting surplus production, Pakistan is embarking on an ambitious
plan to capture at least one percent share of the global arms
market by 2007.
The
government hopes to achieve this by promoting greater private
sector participation in arms production, dual-purpose manufacture
of weapons for civilian and military use, and by incorporating
the cottage arms industry operating in the semi-autonomous tribal
belt bordering Afghanistan in the north-west border.
Pakistan's export income from arms and ammunition is expected
to reach 80-90 million U.S. dollars this year, or double its level
two years ago, largely from sales to developing countries, according
to officials of the Defence Export Promotion Organisation.
With its export push, they hope to hit 250 million U.S. dollars
from weapons sales in five years.
Military planners say the government's plan to boost arms exports
is ''pragmatic'' as the country needs foreign exchange to service
its crippling external debt totalling 33 billion dollars, and
support defence spending, which accounts for a major slice of
Pakistan's national budget.
According to a recent World Bank report, Pakistan's defence expenditure
is 29 per cent of gross domestic product, which it described as
''very high'' by international standards.
Commenting on the report, a finance ministry spokesman said defence
spending was 18.6 per cent of the 2001-02 budget, and 16.5 percent
of the 2002-03 capital outlay.
Defence spending has always drawn on a large portion of Pakistan's
budget because of its fragile security situation with arch-rival
India.
As a major plank of its export plan, Islamabad is eyeing big military
spenders in the Gulf, particularly Saudi Arabia and the United
Arab Emirates, which have an annual defence budget of around 17
billion dollars and 3.7 billion dollars, respectively.
The other potential markets in the region include Sri Lanka, Bangladesh,
Indonesia, Vietnam and some Central Asian Republics. At present,
the United States is the biggest seller of weapons in the international
arms market, accounting for almost half of the
of global market which is valued at 25 billion U.S. dollars. Other
major producers are Russia, Britain, France and Germany.
Pakistan's Deputy Army Chief General Mohammad Yousaf says that
after attaining self-reliance in defence weapons production, Islamabad
has slowly tapped the export market through the sale of its surplus
production to other countries.
He says Western-imposed sanctions against Pakistan had helped
the country achieve self-reliance in defence equipment production.
Experts
say the development of an indigenous weapons capability was also
a response to the monopolistic control exerted by global weapons
suppliers.
The U.S. arms embargo imposed on Pakistan during the 1965 war
with India, and again in 1990 after the withdrawal of Soviet troops
from Afghanistan, prompted Islamabad to move towards self-reliance
in weapons production and develop a capability that would render
it independent on foreign sources of supply.
Since then it has been developing its indigenous weapons production
capability, progressing from the manufacture of infantry equipment
and ammunition to the overhaul and rebuilding of aircraft, tanks,
radar equipment, naval vessels and missiles.
Few, however, are convinced of the government's claims of self-reliance.
Dr Ayesha Siddiqa Agha, a defence analyst says: ''Like other less
industrialised countries, Pakistan falls into the category of
third-tier defence manufacturer with a total production of around
1 billion dollars.''
Dr Ayesha, who is the author of a book 'Pakistan's Arms Procurement
And Military Build-up 1979-99 - In Search Of Policy', said the
country does not have full capacity to manufacture weapons across
a broad spectrum.
Rather,
Pakistan's defence production capacity is dependent on first or
second-tier manufacturers, Ayesha told IPS.
Major weapons are mostly produced under license from original
equipment manufacturers (OEM) with limited indigenous components.
Pakistan's capability to carry out modifications on weapons systems
is also limited, she said.
''It is still dependent upon French and Chinese OEMs for sensitive
technologies and strategic materials to overhaul and assemble
a weapons system. For instance, it is the French that supply essential
components for the upgrade and overhaul of the Mirage aircraft
or assembly of Agosta submarines and mine hunters. The same is
the case with the Chinese equipment,'' she said.
Ayesha said she was not optimistic that Pakistan could enhance
its export market at current production levels, saying that the
need is for public-private partnership.
Pakistan is unable to manufacture sophisticated weapon systems,
which are cheaper to import than if they were made indigenously,
she pointd out. Naveed Rehman, one of the organisers of last month's
international defence exhibition in Karachi, said the arms industry
has incorporated around 10,000 craftsmen working in the small
arms cottage industry in tribal areas bordering Afghanistan.
He said that the industry was mainly geared to meeting the demands
of local markets producing pump-action shot guns and copies of
Russian Kalashnikov submachine guns, Tokarev pistols and related
ammunition.
Rebuffing official claims, Dr Ayesha said the government only
in fact brought in around 50 craftsmen into public sector manufacturing,
which she said, is not significant.
But Maria Sultan, a researcher working with the Institute of Strategic
Studies, welcomed the fact that Pakistan is trying to put its
domestic arms industry on the international map.
Efforts to boost arms manufacturing offer initiatives and multiplier
effects to the people involved in the defence industry. She said
an institutionalised approach towards research and development
in the defence industry will further upgrade defence products
to international standards.
