Riaz Haq writes this data-driven blog to provide information, express his opinions and make comments on many topics. Subjects include personal activities, education, South Asia, South Asian community, regional and international affairs and US politics to financial markets. For investors interested in South Asia, Riaz has another blog called South Asia Investor at http://www.southasiainvestor.com and a YouTube video channel https://www.youtube.com/channel/UCkrIDyFbC9N9evXYb9cA_gQ
Showing posts with label Defense Industry. Show all posts
Showing posts with label Defense Industry. Show all posts
Admiral Naveed Ashraf, Pakistan Navy Chief, spoke of his vision for "indigenization and modernization" of his branch of the Pakistani military on the eve of multinational AMAN 2025 naval exercises. Biennial AMAN Exercise and Dialogue this year attracted 60 nations from Australia to Zimbabwe (A to Z). China, the United States, Turkey and Japan were among the countries which participated in it.
Some of the AMAN 2025 Participants in Karachi, Pakistan
Pakistan has a 1,000 kilometers long coastline on the Arabian Sea with maritime sovereignty over 200 nautical miles deep Exclusive Economic Zone (EEZ) and 150 nautical miles of Continental Shelf. This adds 290,000 square kilometers of sea or about 36% of the country's land area open for tapping vast resources in it. Pakistan's "Blue Economy" in this extended economic zone includes seafood and energy resources as well as international trade connectivity with the rest of the world. It offers opportunities for water sports, recreation and tourism in the coastal areas of Pakistan.
Over the next 10 years, Pakistan has plans to build a modern well-equipped naval force with 50 ships ranging from frigates and submarines to corvettes and offshore patrol vessels. Recently, Pakistan Navy has inducted Type 054 A/P frigates from China, Offshore Patrol Vessels Batch-I and Batch-II from Romania and MILGEM-class corvette from Türkiye. "These platforms with the latest weapons and sensors will be a significant addition to the Pakistan Navy’s existing capabilities to effectively deal with today’s complex multi-threat environment", Ashraf told John Hill of "Naval Technology" publication. "The Jinnah-class frigate marks a significant advancement for my Navy as our first indigenously designed and produced large warship", he added.
As part of its modernization and indigenization effort, Pakistan is building its domestic defense industry to reduce dependence on imports. The Pakistani Navy Chief explained: "Currently, our industrial base is developing and gearing up for this initiative and we anticipate that our technological capabilities will grow throughout the program. This growth will be facilitated through partnerships with experienced defense partners from friendly countries". China and Turkey are Pakistan's closest partners in this effort. Pakistan’s defense acquisition budget is forecast to register a compound annual growth rate of 11.4% over the next four years: it is projected to reach $3.1 billion in 2029 from $2 billion in 2025, according to GlobalData intelligence.
In terms of military diplomacy, Pakistan is working with a much larger group of nations represented at the AMAN Exercises and Dialogue 2025. The list includes Australia, Azerbaijan, Bahrain, Bangladesh, Belarus, Brazil, Brunei, Burundi, Cambodia, Canada, China, Comoros, Czech, Djibouti, Egypt, Fiji, France, Germany, Indonesia, Iran, Iraq, Italy, Japan, Jordan, Kazakhstan, Kenya, Kingdom of Saudi Arabia (KSA), Kuwait, Libya, Malaysia, Maldives, Morocco, Myanmar, Netherland, Nigeria, Oman, Pakistan, Palestine, Philippines, Qatar, Romania, Russia, Seychelles, South Africa, South Korea, Spain, Sri Lanka, Switzerland, Tajikistan, Tanzania, Thailand, Timor-Leste, Tunisia, Türkiye, UAE, Uganda, UK, USA and Zimbabwe.
Over two dozen ships from twelve navies participated in an international fleet review off the coast of Pakistan – the grand finale to multinational naval exercise AMAN 2025 that saw a record 60 nations participate, according to media reports.
The recently concluded IDEAS 2024, Pakistan's Biennial International Arms Expo in Karachi, featured the latest products offered by Pakistan's defense industry. These new products reflect new capabilities required by the Pakistani military for modern war-fighting to deter external enemies. The event hosted 550 exhibitors, including 340 international defense companies, as well as 350 civilian and military officials from 55 countries.
Pakistani defense manufacturers highlighted their latest products, including armed UAVs, air-launched cruise missiles, smart munitions and main battle tanks. A Pakistani defense official said a large number of memoranda of understanding (MOUs) were signed with foreign military officials which could potentially lead to $36 billion in future sales.
Pakistan Shahpar III UAV. Source: @ZARRAR3D
Pakistan's state-owned defense conglomerate Global Industrial & Defense Solutions (GIDS) displayed a new medium-altitude long-endurance (MALE) unmanned aerial vehicle (UAV) – Shahpar III – at the IDEAS 2024 which was held at the Karachi Expo Center from November 24 to 27, 2024. Shahpar III features longer endurance, weapon carrying capacity, and service ceiling over the earlier platforms in the Shahpar family of UAVs. The Shahpar III will have a maximum take-off weight of 1,650 kg and can carry multiple weapons on six underwing hardpoints. It will feature domestically developed avionics and be equipped with a dual-redundant flight control computer (US MIL-STD-1553 architecture), enhancing the aircraft's reliability, according to Jane's Defense.
GIDS also introduced a new Kamikaze (suicide) drone "Sarkash" at the event. The drone has a maximum range of 1,000 km, endurance of over 2 hours, a 50 kg warhead, and a total weight of 175 kg, powered by a turbojet engine. GIDS is also working on the Sarkash-1, a long-range loitering munition.
GIDS also unveiled the Blaze Series of loitering munitions, including Blaze 25, Blaze 50, and Blaze 75 at IDEAS 2024. The lightest of the series, the 25 kg Blaze 25 is ideal for short-range anti-tank operations with a range of 75 km and an endurance of 60 minutes, leaving minimal acoustic and thermal signature thanks to its electric propulsion system, according to OVD. In contrast, the Blaze 50, with its 50 kg weight, 180 km range, and 20 kg warhead, is an intermediate solution for medium-range attacks and reconnaissance missions. Designed for strategic, long-range engagements, the Blaze 75, the heaviest and most powerful model, boasts a 500 km range and a 30 kg warhead. It is powered by a gasoline engine for long-term endurance.
Qaswa Industries showcased its AZB-81LR Small Diameter Bomb (SDB) at IDEAS 2024. It is a stand-off weapon (SOW) with a range of 200 km. The precision-guided munition has a 250 lbs weight and has a standoff attack range of 200 kilometers, with an imaging infrared (IIR) seeker, according to defense publication Quwa.
Quwa also reported on a new Air Launched Cruise Missile (ALCM) displayed at Expo. Using a stealthy low-observable (LO) airframe, the Rasoob-250 offers a range of 350 km with a cruising speed of Mach 0.7 and accuracy of within 5 m CEP (circular error probable). Including a booster, it has a total mass of 285 kg, with the semi-armor piercing warhead taking up 75 kg. It can be launched from drones, helicopters, and maritime patrol aircraft (MPA).
The Pakistan Air Force (PAF) publicly revealed for the first time a model of the next generation of its Pakistan Aeronautical Complex (PAC)/Chengdu Aircraft Corporation (CAC) JF-17 ‘Thunder' fighter aircraft. Known as the JF-17 PFX (Pakistan Fighter Experimental), the model was displayed at the event in Karachi. Pakistani officials at IDEAS 2024 described the JF-17 PFX as a 4.5-plus generation twin-engine fighter aircraft. They also said that development of the type is expected to be completed before the end of the decade, according to Jane's.
Pakistan has announced plans to develop and produce 5th generation fighter plane, according to media reports. It's part of Pakistan Air Force's highly ambitious Project Azm that includes building Kamra Aviation City dedicated to education, research and development and manufacturing of advanced fighter jets, unmanned aerial vehicles (UAVs) and weapon systems.
Pakistan's JF-17 Jet Fighter
Human Capital:
Development of a new advanced fighter is a wide-ranging effort that will encompass building human capital in a variety of fields including material science, physics, electronics, computer science, computer software, electrical engineering, mechanical engineering, aerospace engineering, avionics, weapons design, etc etc.
Air University:
Pakistan Air Force's Air University, established in 2002 in Islamabad, will add a new campus in Kamra Aviation City. The university already offers bachelor's master's and doctoral degrees in several subjects. Pakistan Air Force Chief Sohail Aman told Quwa Defense News that the campus will “provide the desired impetus for cutting-edge indigenization programs, strengthen the local industry and harness the demands of foreign aviation industry by reducing … imports and promoting joint research and production ventures.”
Defense Exports:
Air forces of about a dozen developing nations are buying and deploying Pakistani made aircrafts. The reasons for their choice of Pakistan manufactured airplanes range from lower cost to ease of acquisition, maintenance and training.
Pakistan started developing defense hardware for imports substitution to reduce external dependence and to save hard currency. Now the country's defense industry is coming of age to lead the way to high value-added manufactured exports.
Pakistan Super Mushshak Trainer Aircraft
Nigerian Air Force is the latest to announce purchase of Pakistan made Super Mushshak aircraft after the United States' refusal to sell to Nigeria, according to American periodical Newsweek. Nigerian Air Force chief Air Marshal Sadique Abubakar was quoted by the Nigerian media as saying that "Pakistan has accepted to sell ten trainer airplanes. And that is why the Pakistan Chief of Air Staff is coming for the induction ceremony which is going to take place in Kaduna".
Several other countries are in the process of making decisions to purchase aircraft from Pakistan. A report in Pakistan's Express Tribune newspaper says that Turkey has decided to buy 52 Super Mushshak trainer aircraft. The Tribune also reported that Azerbaijan may buy a couple of dozen JF-17 Thunder fighter jets jointly developed by Pakistan and China.
Along with exporting existing hardware, Pakistan is continuing its efforts to enhance the capabilities with new versions. For example, fighter-jet JF-17’s Block III is expected to open up new opportunities for Pakistani defense exports.
The new JF-17 Block III will be a twin-seat trainer version with advanced Active Electronically-Scanned Array radar and mid-air-refueliling probe. It will use new composite materials to increase its performance, besides addition of other updates in cockpit and weapons’ pods, according to Pakistani media reports.
Pakistan's Defense Industry Collaboration With China, Turkey:
Growing defense collaboration between China and Pakistan irks the West, according to a report in the UK's Financial Times newspaper. The paper specifically cites joint JF-17 Thunder fighter jet, armed drone Burraq and custom AIP-equipped submarines as examples of close cooperation between the two nations.
More recently, Pakistan has also begun to collaborate with Turkey in developing arms. In particular, Pakistan has been mentioned as a prospective partner in the TFX, Turkey’s next-generation fighter effort.
Pakistan's bitter experience with the unreliability of its cold war allies as weapons suppliers has proved to be a blessing in disguise. It has forced Pakistan to move toward self-reliance in production of the weapons it needs to defend itself from foreign and domestic enemies.
It all started back in 1965 when the US and its western allies placed an arms embargo on Pakistan during war with India. The bitterness grew stronger when the US forced France to cancel its contract to supply a breeder reactor to Pakistan in 1974 soon after India conducted its first nuclear test.
Khushab Nuclear Reactor:
Fortunately for Pakistan, the French had already given Pakistanis scientists drawings and specifications before canceling the breeder reactor contract. Work on Khushab reprocessing plant stated in 1974 when Pakistan signed a contract with the French company Saint-Gobain Techniques Nouvelles (SGN). In 1978, under U.S. pressure, France canceled the contract. Pakistan then proceeded to indigenously produce its own nuclear breeder reactors at Khushab. Four such reactors are now operating to produce plutonium for Pakistan's nuclear weapons program. Having done its first nuclear test in 1998, Pakistan now has a large and growing nuclear arsenal it needs to deter any enemy adventurism against it.
Babar Cruise Missile:
Since MTCR (Missile Technology Control Regime) prevented Pakistan from acquiring delivery vehicles from other countries, the country had to develop its own ballistic and cruise missiles to carry nuclear weapons.
The story of Babar Cruise Missile development is particularly interesting. It is believed that Pakistani engineers learned the technology by dismantling and studying a US Tomahawk cruise missile that fell in Pakistani territory when President Bill Clinton fired these missiles to target Al Qaeda in Afghanistan.
JF-17 Thunder Fighter:
The development of JF-17, a modern highly capable and relatively inexpensive fighter jet, is the crowning achievement to-date of the Pakistan-China defense production cooperation. It's being deployed by Pakistan Air Force with Pakistan Aeronautical Complex (PAC) on recently rolling out the 16th Block 2 JF-17 aircraft for PAF's 4th squadron. The latest version is capable of launching a variety of nuclear and conventional weapons ranging from smart bombs and air-launched cruise missile Raad to anti-ship missiles.
Pakistan Aeronautical Complex (PAC) got its start decades ago by setting up maintenance facilities for advanced fighters like French Mirage and US F-16s and by manufacturing Mushshak and Super Mushshak trainer aircraft. It is now also building JF-17s as well as a variety of drones, including combat UAV Burraq being used in Pakistan's war against militants in Waziristan.
Nuclear-Capable AIP Submarines:
Pakistan is expanding and modernizing its underwater fleet with 8 additional AIP-equipped submarines. Four of these subs will be manufactured in Pakistan. These will reportedly be custom versions of Yuan class diesel-electric subs with additional wider tubes from which cruise missiles can be launched. A key requirement for these submarines is to be stealthy—and the AIP-equipped Yuan class is indeed very quiet. The trick is in the submarine’s air-independent propulsion fuel cells, which provide power under the surface as the diesel engines—used for running on the surface—rest and recharge. Though relatively limited in range, this system is quieter than the nuclear-powered engines on American and Russian submarines, which must constantly circulate engine coolant.
Arms as Pakistan's Cottage Industry
Pakistan has a long history of arms manufacturing as a cottage industry. The dusty little town of Darra Adam Khel, only a half-hour drive from Peshawar, reminds visitors of America's Wild West. The craftsmen of this town are manufacturers and suppliers of small arms to the tribal residents of the nation's Federally Administered Tribal Areas who carry weapons as part of their ancient culture. The skilled craftsmen of FATA make revolvers, automatic pistols, shotguns and AK-47 rifles. Until five years ago, the list also had items such as anti-personnel mines, sub-machine guns, small cannons and even rocket launchers. Pakistani government has forced the tribesmen to stop making heavy assault weapons to try and prevent the Taliban and Al Qaeda from getting access to such weapons.
Pakistan's arms industry has come a long way from making small arms as a cottage industry in the last few decades. The US and Western arms embargoes imposed on Pakistan at critical moments in its history have proved to be a blessing in disguise. In particular, the problems Pakistan faced in the aftermath of Pressler Amendment in 1992 became an opportunity for the country to rely on indigenous development and production of defense equipment.
Pakistan's Military Industrial Complex
The country now boasts a powerful industrial, technological and research base developing and manufacturing for its armed forces a wide variety of small and large weapons ranging from modern fighter jets, battle tanks, armored vehicles, frigates and submarines to armed and unarmed aerial vehicles and high tech firearms and personal grenade launchers for urban combat. Some of these items were on display at IDEAS 2014, the 5-day biennial arms show held November 2014 in Karachi, Pakistan.
Praise by Vice Chief of Indian Army:
General Sarath Chand, the Vice Chief of Indian Army, has been quoted by the Indian media as saying: “I would even go to the extent of saying that Pakistan probably has a better industrial base, as far as defense production is concerned, than our country. In fact they export defense equipment abroad, definitely more than what we are doing.”
Summary:
Pakistan has announced plans to develop and produce 5th generation fighter plane as part of the country's Air Force's highly ambitious Project Azm that includes building Kamra Aviation City dedicated to education, research and development and manufacturing of advanced fighter jets, unmanned aerial vehicles (UAVs) and weapon systems. It's a recognition that the country can not be truly independent and have real national security unless it can develop and manufacture the arms it needs to defend itself. Pakistan is just starting to do it but it has a very long way to go. Pakistan is also beginning to export defense hardware to developing nations. Pakistan is recognizing the need to develop significant human capital and build a vibrant economy to make progress on this front.
Pakistan is launching domestic construction of warships, submarines and missile boats as part of its ambitious naval modernization program in collaboration with China, according to media reports.
Karachi Shipyard
Chinese media reports have described a building program involving six of eight S-20 AIP-equipped variants of the Type-039A/Type-041 submarine under negotiation; four "Improved F-22P" frigates equipped with enhanced sensors and weaponry (possibly including the HQ-17 surface-to-air missile developed from the Russian Tor 1/SA-N-9); and six Type-022 Houbei stealth catamaran missile boats, to be built by Pakistan's state-owned shipbuilder Karachi Shipyard and Engineering Works (KSEW), according to DefenseNews.
Pakistan is expanding and modernizing its underwater fleet with 8 additional AIP-equipped submarines jointly built with China. Mansoor Ahmed of Quaid-e-Azam University told Defense News that AIP-equipped conventional submarines "provide reliable second strike platforms, [and] an assured capability resides with [nuclear-powered attack and nuclear-powered ballistic missile submarines], which are technically very complex and challenging to construct and operate compared to SSKs, and also very capital intensive."
Expansion of KSEW in Karachi includes a new foundry, fabrication facilities to cover all aspects of ship construction, berthing facilities, and two graving docks of 26,000 and 18,000 dead weight tons, spread over 71 acres.
A 7,881-ton ship lift transfer system will be completed next year.
KSEW will expand to occupy facilities vacated by the Navy as it transfers from Karachi to Ormara. The Pakistan Navy Dockyard, which is adjacent to KSEW, already has facilities upgraded by the French during construction of Agosta-90B submarines.
The Pakistan Navy modernization efforts further expands existing China-Pakistan military manufacturing collaboration at Pakistan Aeronautical Complex (PAC) which has resulted in design and manufacturing of JF-17 fighter jets for Pakistan Air Force.
JF-17 Fighter Jet
In addition to designing and building military hardware together, Pakistan and China are also increasingly collaborating on manufacturing consumer appliances and products. The Pakistan-China economic corridor project includes setting up of several special economic zones for this purpose. A good example of this cooperation is Haier-Ruba special economic zone in Lahore. Haier-Ruba joint venture in Pakistan has announced plans to start manufacturing laptops and smartphones in Lahore this year, according to the JV chairman Shah Faisal Afridi. The Haier-Ruba group is one of the largest manufacturers of polyester yarn and home appliances in the country.
The growth of both military and civilian manufacturing industries is helping to develop Pakistan's human capital and creating job opportunities for engineers, technicians and other workers.
Pakistan has taken a page from China's industrialization playbook which shows that the Chinese People's Liberation Army (PLA) led the nation's industrial growth, first with military hardware and then expanding into consumer and industrial product manufacturing.
The New York Times is quoting unnamed senior Obama administration and Congressional officials as claiming that the United States is accusing Pakistan of illegally modifying American-made Harpoon anti-ship missiles to expand its capability to strike land targets, a potential threat to India.
American military and intelligence officials reportedly say they suspect that Pakistan has modified the Harpoon antiship missiles that the United States sold the country in the 1980s, a move that would be a violation of the Arms Control Export Act. Pakistan has denied the charge, saying it developed the missile itself. The United States has also accused Pakistan of modifying American-made P-3C aircraft for land-attack missions, another violation of United States law that the Obama administration has protested.
According to a senior Pakistani official, Pakistan has taken the unusual step of agreeing to allow American officials to inspect the country’s Harpoon inventory to prove that it had not violated the law, a step that the US administration officials praised.
Independent experts are also skeptical of the alleged American claims, according to Asian Defense blog. Robert Hewson, editor of Jane’s Air-Launched Weapons, a yearbook and Web-based data service, has said the Harpoon missile did not have the necessary range for a land-attack missile, which would lend credibility to Pakistani claims that they are developing their own new missile. Moreover, he said, Pakistan already has more modern land-attack missiles that it developed itself or acquired from China.
According to Tech Lahore blog, Pakistan's Raa’d missile has been mated with Mach 2 capable Mirages and is now being integrated with Pakistan’s new fighter, the JF-17. The missile can be launched from a stand-off distance of almost 500km and employs more sophisticated guidance than the Harpoon. This raises the question as to why would Pakistan want to attack land targets with a slow, bulky aircraft like the P-3, firing shorter range Harpoon missiles, when it’s air force already has almost 175 Mirage aircraft with Raa’d cruise missiles and recently added in-flight refueling capability?
“They’re beyond the need to reverse-engineer old U.S. kit,” said Mr. Hewson about Pakistan's current capabilities. “They’re more sophisticated than that.” Mr. Hewson said the ship-to-shore missile that Pakistan was testing was part of a concerted effort to develop an array of conventional missiles that could be fired from the air, land or sea to address India’s much more formidable conventional missile arsenal.
Coming just a week before the $7.5 billion aid-to-Pakistan bill goes to the US senate, it is clear that the timing and the motives of Eric Schmitt and David Sanger of the New York Times “leak” are highly suspicious. It fits a pattern of "leaks" in Washington to either defeat or add poison pill amendments to any legislation likely to aid to Pakistan. Such well-timed "leaks” to the New York Times, known for similar well-timed "leaks" about Iraq WMDs prior to the ill-conceived US invasion of the middle eastern nation, are most likely inspired by the Israeli and Indian lobbies in Washington who are irrevocably opposed to any US assistance to Pakistan.
Past hypocritical denials of US weapons to Pakistan while offering modern offensive weapons to India has been a blessing in disguise for Pakistani military and its defense industry. Every time US has embargoed or quibbled over some insignificant little "arms control" violations with Pakistan, Pakistanis have responded to the challenge by developing their own indigenous capabilities. Such developments not only help strengthen the nation's defenses, domestic defense production also aids in developing human skills, enhancing arms exports and providing badly-needed jobs to many.
Here's a video clip about Pakistan's arms expo IDEAS 2008:
There has been a great deal of criticism of Pakistani military's role in the industry and the economy of Pakistan since the release of Dr. Ayesha Siddiqa Agha's book "The Military Inc: Inside Pakistan's Military Economy" last year. The book describes in some detail the size and the activities of what Dr. Agha calls "MILBUS", the military business in Pakistan. MILBUS, according to the author, includes banks, insurance, cereals, fertilizer, cement, hospitals and clinics, radio and TV, schools, universities and institutes, etc.
In her strongest criticism of Pakistan's military, the author argues that Pakistani military is a giant which has strong political control, economic control, and a very dominant social presence; a military that has over 7% share of the GDP, which controls one-third of heavy manufacturing in the country, which controls 6-7% private sector assets. It has a huge economic presence. It is a constant story of uneven development, between different organizations and institutions.
While some commentators have challenged Dr. Agha's data and her allegations about the dominance of Pakistan's military in the country's business and economy, this post is designed to question why is it bad for Pakistan's military to play an important role in the nation's business.
To explore the possibility of the Pakistani military playing a much bigger positive role in rapid industrialization and globalization of Pakistani economy, let us take a look the role the Chinese People's Liberation Army (PLA) has played in China's phenomenal economic progress and its emergence as a new superpower in the last few decades.
China's PLA began its manufacturing role for the defense sector that picked up steam after the Sino-Soviet tensions during Mao's time. Manufacturing purely military products, such as arms, ammunition, as well as electronics, plastics and metals for military applications, these so-called "third-line" factories were built in remote mountain regions, far away from transportation routes and power sources. The factories bought supplies at subsidized costs from other factories, manufactured the weaponry and related products -- generally low-tech and low-quality -- and then sold them to the military at subsidized prices.
With the change of leadership after Mao's death in 1976, the new government encouraged the military plants to begin exploring civilian uses for their products and to engage in the broader liberalization of the economy. The most nimble managers were free to exploit new markets for their goods. During the early 1980s, the PLA's share of the national budget declined, spurring it to look to other sources for cash, especially hard currency. The higher organizational levels of the PLA created trading companies like China Xinxing, China Poly and China Songhai to take advantage of the opening of China's economy to the international market, according to British analyst Gary Busch.
They formed banks, holding companies and international trading companies like Everbright to market these goods worldwide. Now the PLA runs farms, factories, mines, hotels, paging and telephone companies and airlines, as well as major trading companies.
Busch says the number of military-run businesses exploded during the boom of the late 1980s. The "third line" factories opened branches in the coastal areas, earning increasingly higher profits from the manufacture and export of civilian goods. Even the lowest levels of the PLA set up production units. In fact the PLA had a largely captive audience of Chinese who had never really had the chance to acquire personal goods produced in China before. In addition to their international arms sales, their production of consumer goods for the domestic market soared.
Since the 1980s, many of the PLA companies have now become part of the global economy. According research done by David Welker for Multinational Monitor, in pursuit of hard currency, many of the companies have listed themselves on capital markets in Hong Kong and elsewhere, opened representative offices in overseas markets, solicited foreign companies for joint ventures and partnerships in China and emphasized exports. The so-called red chips, companies listed on the Hong Kong exchange but which are in fact mainland Chinese firms, are the hottest stocks on the market. Hong Kong is the PLA's favored stock exchange because of its loose disclosure guidelines. China Poly Group has two listed companies: Continental Mariner Company Ltd. and Poly Investments Holdings Ltd. Both Continental Mariner and Poly Investments have a large number of subsidiary companies in mainland China, Hong Kong and tax havens like Liberia, the British Virgin Islands and Panama. China Carrie's listed company in Hong Kong is Hongkong Macau Holdings Ltd. China Carrie also owns HMH China Investments Ltd. on the Toronto Stock Exchange and HMH Gold Mining on the Australian Stock Exchange. 999 Enterprise Group, another company controlled by the PLA General Logistics Department, operates Sanjiu Pharmaceuticals Group, the largest pharmaceuticals manufacturer in China. 999 recently listed on the Hong Kong exchange.
Smaller military enterprises, like the Songliao Automobile Company owned by the PLA Shenyang Military Region, have also listed in the domestic Chinese markets.
China Poly Group is a commercial arm of the Chinese People's Liberation Army (PLA) General Staff Department. The PLA General Logistics Department operates China Xinxing. The PLA General Political Department owns and operates China Carrie. The Northern Army Group runs NORINCO and the PLA Navy runs China Songhai.
Some of these international Chinese companies with PLA connections are very rich and powerful. Some have entered into very controversial projects. A good example is the Hutchison-Whampoa, Hutchison Port Holding (HPH), according to Busch. HPH is a huge, multibillion-dollar company which has set up operations in ports all around the world. From Panama to the Philippines, an arm of Hutchison-Whampoa, Hutchison Port Holding (HPH), has become the world's largest seaport operator, embedding itself in strategic seaports all across the globe. In fact now Hutchison holds the exclusive contract to operate the Panama Canal.
Hutchison-Whampoa has spread everywhere. It has a base in Tanzania where it runs Tanzania International Terminal Services Ltd. In the Western Hemisphere it has seaport services in Buenos Aires, Argentina; Freeport, the Bahamas; Veracruz, Mexico; and at both ends of the Panama Canal. HPH's latest acquisition involved taking over eight Philippine ports. New ports in Mexico, Argentina, Saudi Arabia, Pakistan, Tanzania and Thailand make Hutchision-Whampoa the world's largest private port operator with 23 cargo berths, bringing its worldwide total of ports to a staggering 136.
Other ports include Jakarta, Indonesia; Karachi, Pakistan; India (where the company runs the cellular phone services); Burma; China; and Malaysia. There are port operations in Britain at Harwich, Felixstowe (Britain's largest port), and Thames port, and in the Netherlands at Rotterdam. The company is bidding to set up in South Korea's largest port, Pusan, and is already in Kwangyang, another South Korean port.
Retired PLA officers also continue to support China's transformation to a powerful first world economy by founding such companies as Huawei, the Chinese router giant challenging Cisco's dominance.
Since the early 1990s, there has been an ongoing effort to spin off the PLA's commercial enterprises into private companies managed by former PLA officers, and to reform military procurement from a system in which the PLA directly controls its sources of supply to a contracting system more akin to those of Western countries. The separation of the PLA from its commercial interests is now believed to be largely complete. But the stamp of the PLA influence continues on most large enterprises in the form of retired PLA personnel managing these businesses.
The Chinese have pursued liberalizing their economy without political liberalization, in the same way other East Asians did. Such a strategy has allowed them to pursue rapid economic growth while forcefully controlling chaos on the streets, as the PLA did at Tienanmen square in 1989. At the same time, the Chinese PLA businesses have sparked a great industrial revolution that has transformed the nation's economy, accelerated its human development, greatly enriched China and lifted hundreds of millions of people out of poverty. Just as it has in other East Asian nations, it can be expected that political liberalization and democracy will follow the rapid wave of industrialization and human development in China.
Even in the richest democracy like the United States, the military has played a significant role in funding research, development and manufacturing industries to support America's military-industrial complex and its space program. In spite of some of the well-deserved criticisms of the the world's biggest military-industrial and space complex in America, no one can deny that a lot of innovation and job creation and economic expansion has flowed from it for the American society at large.
India, another member of the emerging powers now called "BRIC", has failed to use a period of high economic growth to lift tens of millions of people out of poverty, falling far short of China’s record in protecting its population from the ravages of chronic hunger, United Nations officials said recently. Last year, British Development Minister Alexander contrasted the rapid growth in China with India's economic success - highlighting government figures that showed the number of poor people had dropped in the one-party communist state by 70% since 1990 but had risen in the world's biggest democracy by 5%.
Pakistan's record in alleviating poverty and increasing human development is not much better than India's. But Pakistani military has shown that it is capable of building and operating a wide variety of businesses profitably, ranging from heavy weapons manufacturing to industrial and consumer goods, construction and finance. The country now boasts a powerful industrial, technological and research base developing and manufacturing for its armed forces and exporting a wide variety of small and large weapons ranging from modern fighter jets, battle tanks, armored vehicles, frigates and submarines to unmanned aerial vehicles and high tech firearms and personal grenade launchers for urban combat. Comparing with the Chinese PLA, it is also clear that Pakistan's military currently has a very small footprint in industrial and economic development and globalization of the nation's economy. It is now recognized that without PLA's crucial role, it would have been very difficult for the Chinese to build the modern industrial base and attract massive foreign direct investments to become the factory of the world. It is also clear that, as a powerful and stable institution, Pakistani military can and should take inspiration from the PLA to play a much bigger role in Pakistan's economic development and rapid industrialization to help increase the nation's prosperity and lift millions out of poverty, as China's PLA has done.
Pakistan's military should take a leaf from the Chinese PLA playbook. It should do what is necessary to strengthen the nation's industry, economy and national security, regardless of any critics, including Ayesha Siddiqa Agha and her myriad fans. This is the best way forward to a well-educated, industrialized, prosperous and democratic Pakistan in the future.
Here's a video report about Pakistan's weapons development:
U.S. Army Gen. William Westmoreland is reported to have said: "On the battlefield of the future, enemy forces will be located, tracked and targeted almost instantaneously through the use of data links, computer-assisted intelligence and automated fire control. … I am confident the American people expect this country to take full advantage of its technology–to welcome and applaud the developments that will replace wherever possible the man with the machine." It seems that this vision from the 1970s is being realized today. One manifestation of it is the development and deployment of unmanned aerial vehicles by many nations, including Pakistan.
The growing reliance on armed drones (aka predators) by Americans in Afghanistan and Pakistan's FATA region to target militants has been making headlines with increasing casualties. Unmanned Aerial Vehicles or Drones designed and manufactured in Pakistan have also been making news since IDEAS 2008 event in Karachi, Pakistan held in November of last year. Integrated Dynamics, a privately held Pakistani company that drew attention at IDEAS 2008 expo, is a developer and manufacturer of unmanned aerial vehicles.
Integrated Dynamics is a full-service UAV systems provider based in Karachi, Pakistan. The company has been in business since 1997 and designs and integrates UAV systems primarily for the Government of Pakistan, the Pakistan armed forces and export. The company says they are committed to the use of the UAV system as a scientific and defensive tool that can be used to save lives and monitor potentially hostile environments for human personnel. The company also makes drones such as the turbojet-powered Tornado decoy, which can fly up to 200 kilometers, and emit false radar signals to "confuse enemy air defenses into thinking they are attacking aircraft," according to Defense News of Pakistan.
In addition to supplying drones to Pakistani military, the company exports its products to Australia, Spain, South Korea and Libya and the United States. The US homeland security department uses its Border Eagle surveillance drone for border patrol duties. Integrated Dynamics' products cost only a fraction of the cost of comparable products made in the United States and Europe. ID UAV prices start from about $ 20,000 while comparable UAV products made in the West start from about $ 200,000, according to the Karachi-based company. The ID models have operational range of 20 to 1600 kilometers.
Integrated Dynamics began developing the Firefly mini-rocket UAV in late 2004 in response to Pakistani army operational requirements for a high-speed, short-range observation system that could be used in the high-altitude environments of northern Pakistan. A basic system costs around $3,000 and comprises four rockets, a launcher, a carry case, datalink and a PDA-based ground control station.The UAV company is an example of a new generation of private defense companies in Pakistan that have grown with the emerging needs of Pakistani military and export opportunities to both military and civilian sectors abroad.
Arms as Pakistan's Cottage Industry
Pakistan has a long history of arms manufacturing as a cottage industry. The dusty little town of Darra Adam Khel,only a half-hour drive from Peshawar, reminds visitors of America's Wild West. The craftsmen of this town are manufacturers and suppliers of small arms to the tribal residents of the nation's Federally Administered Tribal Areas who carry weapons as part of their ancient culture. The skilled craftsmen of FATA make revolvers, automatic pistols, shotguns and AK-47 rifles. Until five years ago, the list also had items such as anti-personnel mines, sub-machine guns, small cannons and even rocket launchers. Pakistani government has forced the tribesmen to stop making heavy assault weapons to try and prevent the Taliban and Al Qaeda from getting access to such weapons.
Pakistan's arms industry has come a long way from making small arms as a cottage industry in the last few decades. The US and Western arms embargoes imposed on Pakistan at critical moments in its history have proved to be a blessing in disguise. In particular, the problems Pakistan faced in the aftermath of Pressler Amendment in 1992 became an opportunity for the country to rely on indigenous development and production of defense equipment.
Pakistan's Military Industrial Complex
The country now boasts a powerful industrial, technological and research base developing and manufacturing for its armed forces and exporting a wide variety of small and large weapons ranging from modern fighter jets, battle tanks, armored vehicles, frigates and submarines to unmanned aerial vehicles and high tech firearms and personal grenade launchers for urban combat. Some of these items were on display at IDEAS 2008, the 5-day biennial arms show held November last year in Karachi, Pakistan.
Pakistan has become an increasingly important player in the world arms industry, a global industry and business which manufactures and sells weapons and military technology and equipment. Arms production companies, also referred to as Defense Contractors, produce arms mainly for the armed forces of nation states. Products include guns, ammunition, missiles, military aircraft, military vehicles, ships, electronic Systems, and more. The arms industry also conducts significant research and development. Pakistan's major defense manufacturing companies are owned and operated by Pakistan's military. According to Business Monitor, Pakistan's defense industry contains over 20 major public sector units (PSUs) and over 100 private-sector firms. The majority of major weapons systems production and assembly is undertaken by the state-owned PSUs, while the private-sector supplies parts, components, bladed weapons and field equipment. Major PSUs include the Pakistan Ordnance Factory (POF), Heavy Industries Taxila (HIT), Pakistan Aeronautical Complex, Karachi Shipyard and Engineering Works (KSEW) and the Pakistan Machine Tool Factory. Multinational presence in Pakistan is limited, although joint production or engineering support in the development of certain armaments has recently occurred with companies such as DCN International and the Chengdu Aircraft Industry Group.
IDEAS 2000, Pakistan's first major arms show, was organized after former President Musharraf assumed leadership of the country in the wake of the 1999 bloodless coup that toppled the Nawaz Sharif government. At the show, the former president emphasized the need to grow Pakistan's defense industry and private sector involvement in R&D, manufacturing and marketing of arms. Held every two years since the year 2000, the show has become a runaway success. It has helped Pakistan and other friendly nations to show off their wares, find customers, share knowledge, build bilateral partnerships, encourage scientific innovation and learning among young people and made visitors and Pakistani citizens more aware of the role defense industry plays in national defense and economy. Held in November last year, International Defense Exhibition and Seminar 2008 attracted 256 companies including 162 foreign and 94 Pakistani companies. Among the largest foreign pavilions, Turkey had 28 companies and United States had 22. Other major exhibitors came from China, France, Germany, Italy, Russia, South Korea, South Africa, the Ukraine and the United Kingdom. Among other products, Pakistani companies showed off JF-17 fighter plane built by Pakistan Aeronautical Complex in partnership with China's Chengdu Aircraft, Al-Khalid main battle tank, POF eye capable of shooting around corners and launching grenades in urban combat, and a variety of Unmanned Aerial Vehicles (UAVs) designed, developed and built in Pakistan.
World Arms Market
It is estimated that yearly, over 1 trillion dollars are spent on military expenditures worldwide (2% of World GDP). Part of this goes to the procurement of military hardware and services from the military industry. The combined arms sales of the top 100 largest arms producing companies amounted to an estimated $315 billion in 2006. In 2004 over $30 billion were spent in the international arms trade (excluding domestic arms sales). Many industrialized countries have a domestic arms industry to supply their own military forces. Some countries also have a substantial legal or illegal domestic trade in weapons for use by its citizens. The illegal trade in small arms is prevalent in many countries and regions affected by political instability.
Pakistan's Arms Business
In a July 2008 interview with Pakistan's Dawn newspaper, Major General Mohammad Farooq, Director General of the Defense Export Promotion Organization, indicated that collaboration with the United States had increased in manufacturing armored personnel carriers "with transfer of technology". There have been unconfirmed reports that Pakistan is manufacturing Humvees for the US military in Afghanistan. General Farooq also claimed that Pakistan's defense exports have tripled to around $300 million because of the quality of its ammunition, anti-tank guided missiles, rocket launchers and shoulder-fired surface-to-air missiles. He said exports to South Asian, Middle Eastern and African countries had increased significantly. It has been reported that Sri Lanka has purchased cluster bombs, deep penetration bombs and rockets and Unmanned Aerial Vehicles (UAV) from Pakistan.
General Farooq said optical instruments like night vision devices, laser range-finders and designators, laser threat sensors, artillery armor mortars and munition, mine detectors, anti-tank rifles, missile boats, different types of tear gases, fuses of unarmed vehicles, security equipment and sporting and hunting guns were also being manufactured in Pakistan. "The fuses are being purchased by countries like Italy, France and Spain," he said.
In reply to a question, he said Pakistan's military exports were higher than India's. "Indians started working on Arjun tank but, they are yet to induct it in their army, while Pakistan has built and handed over Al Khalid tank to the army, although it started the program later," he said.
Lately, Pakistan has come under severe criticism by human rights groups for being a leading manufacturer and exporter of land-mines, cluster bombs and depleted uranium munitions.
High-Tech Aerial Warfare
The three main branches of Pakistani military are evaluating UAVs made in Pakistan and the rest of the world for purchase and deployment. Pakistan has been eager to boost its capabilities for high-tech aerial warfare and restructure and reorient its military to respond to the new and emerging challenges of combating insurgents. A number of public and private sector companies have been engaged in research, development and manufacturing of unmanned aerial vehicles as a part of this initiative. The public sector companies include Pakistan Aeronautical Complex, Air Weapons Complex and National Development Complex.
Pakistan made Shahpar UAV
Here's a brief run-down of the status of Pakistan's three military services as gleaned from Jane's and other publications:
Pakistan Air Force
As part of its effort to go high-tech, Pakistan Air Force (PAF) will formally induct unmanned aerial vehicles (UAVs) into service for the first time in 2009, the chief of the PAF has told Jane's. In addition to the Bravo+ UAV, which, according to PAF Chief Air Chief Marshal Tanvir Mahmood Ahmed, has been built indigenously by Air Weapons Complex, the PAF will also receive the Falco UAVs produced by Selex Galileo of Italy. The two systems will be used mainly for aerial reconnaissance and information gathering, although the PAF will later also induct UAVs equipped with weapon systems to carry out offensive operations. "This capability we are developing fairly rapidly; we are becoming mature. It is part of our operations now and I look forward to seeing this in real operations by [the] beginning [of] 2009," ACM Ahmed reportedly told Jane's.
Pakistan Army
The Uqaab, Pakistan Army's drone designed and built by Pakistan Aeronautical Complex, is the first step towards the eventual mass production of a Pakistani UAV. Technical details shared by Pakistani officials suggest that the Uqaab can fly at an altitude of about 15,000 ft and is equipped with day- and night-vision equipment. There have been unconfirmed reports that Pakistan has discussed with China the possibility of further developing the Uqaab to carry a weapons payload, according to Jane's.
Pakistan Navy
Pakistan Navy is reportedly interested in deploying vertical takeoff and landing UAVs on its ship. As a part of its plans to purchase and deploy UAVs, the Pakistani navy has completed trials of Austrian Schiebel Camcopter S-100 and Swedish made Cybaero autonomous VTOL UAVs from a Pakistani frigate in the Arabian sea in April 2008.
Pakistan's UAV Industry
Growing interest by Pakistani military and foreign companies and governments has helped spawn several private Pakistani UAV companies specializing in air-frames, launch and propulsion, flight control, tele-command and control systems, signal intelligence, training simulators, etc. Some of the private companies involved in UAV development and manufacturing include Integrated Dynamics, East-West Infinity, Satuma and Global Industrial Defense Solutions. Between the public and private sector UAVs developed in Pakistan, there is a long list of products including Bravo and Uqaab by Air Weapons Complex, Heliquad by East-West Infinity, Nishan Mk1 , Vision MK1 , Vision MK2 , Nishan TJ 1000, Tornado, Border Eagle, Hornet, Hawk, Hawk Mk1, Shadow and Vector by Integrated Dynamics Pakistan, Flamingo, Jasoos and Mukhbar by Satuma Pakistan , Bazz and Ababeel by Pakistan Aeronautical Complex. These products vary in payload type, size and weight, engine types, range, flying altitude, endurance and launch and recovery systems. Growing domestic and international demand and increasing competition among suppliers is expected to produce significant improvements in capabilities and quality of the UAV products offered by Pakistani companies. In addition to Integrated Dynamics described above, here are three more UAV companies in Pakistan:
East-West Infinity:
One of the companies at the forefront of UAV development is East West Infinity (EWI). EWI's latest products are the Heliquad micro tactical UAV and the Whisper Watch signals intelligence (SIGINT) package.
The Heliquad was first displayed in prototype form at the IDEAS2006 defense exhibition. Equipped with a tiny camera, it can relay pictures back to troops or special forces in an urban environment or in the field, giving them a tactical reconnaissance capability. Being exceptionally small and powered by four electric motors, Heliquad is highly stealthy and represents the cutting edge of EWI's electronics miniaturization. SIGINT has become more important with ongoing anti-terrorism operations on the western front and in the tribal areas. Designed for militaries unable to afford high-end, dedicated SIGINT platforms, the company says its Whisper Watch platform is most effective when aerostat-mounted, as the platform is stationary and airborne for longer.
Satuma:
Satuma (Surveillance and Target Unmanned Aircraft), founded in 1989, is small UAV specialist company based near Islamabad, Pakistan. Satuma products include Flamingo, Jasoos and Mukhbar UAVs. Its biggest customer is Pakistan's military.
Global Industrial Defense Solutions:
GIDS, the largest of the private defense sector companies, has a UAV division, which produces a whole range of operational and training UAVs.Its biggest customer in Pakistan's military. The UAVs developed by GIDS have been extensively flight tested by military. GIDS ground control stations have an interactive and user friendly interface, where flight parameters and auto-pilot mission planning, and execution is done in addition to reception of high-enbd crisp quality video transmitted over an encrypted digital link.
Headed by a retired PAF Air Vice Marshall, GIDS has emerged from a combination of 7 Pakistani private defense companies that include AERO (Advanced Engineering Research Organization), IDS (Integrated Defense Systems), MSL (Maritime Systems Pvt Limited), ACES (Advanced Computing and Engineering Solutions), IICS (Institute of Industrial Control Systems), ATCOP (AI-Technique Corporation) and SETS (Scientific Engineering and Technology Solutions). Other than UAVs, its major products include anti-personnnel, anti-armor, incendiary, anti-runway, electronic impact and time-based fuses, electronic warfare equipment, navigation systems, optical fiber and optical fiber cables. Anti-tank Wire Guided Missile System known as "Baktar Shiken" made by IICS, a component of GIDS.
Conclusion
Pakistan's growing defense industry is going high tech to keep up with the challenges of a changing world that requires advanced weapons and new strategies to maintain peace and stability in a hostile neighborhood. At the same time, Pakistan's defense industry is contributing to scientific, technological, industrial and economic development of the nation by training and employing thousands of citizens. The investments made in defense production are a good bargain for the companies, their investors and the taxpayers of Pakistan to help ensure the nation's economic, political and national security against both internal and external threats.
Note: Abbreviated version of this article was first published by Dinar Standard.
Here's a video report about Pakistan's weapons development:
Here's a video clip of UAV Uqaab flight test:
Here's a video clip about Pakistan's arms expo IDEAS 2008:
