New Market Research Report: Pakistan Defence & Security Report 2016

From: Fast Market Research, Inc.
Published: Thu Apr 28 2016

The state-dominated Pakistani defence industry still lacks advanced design and development capabilities in most segments, which means that the country remains heavily reliant on foreign partners to meet its armed f orces' requirements. However, joint venture s with China have allowed local manufacturers to benefit from technology transfer in recent years, and tanks, combat aircraft and armed UAVs are now produced i n-country. As a result, P akistani defence exports are rising - particularly to developing countries looking for affordable equipment. Islamabad is under pressure to maintain defence expenditure growth, as the government must keep powerful military officials satisfied in order to ensure political stability, amid an intensified counterterrorism campaign and persistent tension with neighbouring India. We expect significant investment into equipment needed for counterterrorism operations in the next few years, and a gradually stronger focus on strengthening naval and air power (both for which India retains superiority over Pakistan) over the longer term. That said, huge operational expenses linked to ongoing military operations will restrict funding for modernisation to some degree.

Full Report Details at

Latest Updates

Domestic Defence Sector:

The Block 3 version of the JF-17 Thunder fighter jointly produced by Pakistan Aeronautical Complex (PAC) and Chinese Chengdu Aerospace Corporation (CAC) is in 'final design stages' according to Chinese media in December 2015. A two-seater version of the aircraft was reported to be undergoing testing in China in that same month. In November 2015, PAC accounted plans to set up a Klimov RD-93 engine (used in JF-17s) service and overhaul facility at Kamra.

Pakistan reported in September 2015 that the locally-produced armed Burraq UAV had been successfully used in a daytime attack - the first-ever demonstration of offensive capability in battle by a Pakistani UAV - and a night time attack the following month.

Media reported in June 2015 that Pakistan Ordnance Factories may absorb the financially struggling Pakistan Machine Tool Factory.

In January 2016, Pakistan's Standing Committee on Defence Production recommended additional funding for Karachi Shipyard and Engineering Works (KSEW) under the 2016-2017 budget to expand the shipyard's capacity.

Pakistan is reportedly planning to establish a second shipyard at the Gwadar deep sea port; the proposal is currently awaiting approval from the prime minister.

In October 2015, Islamabad issued a statement saying it was planning to expand defence development and production cooperation with Turkey in areas such as communications, aircraft and shipbuilding. Turkey donated 34 Cessna T-37 trainer aircraft to Pakistan in the same month.

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