Ministry of Defence Production: Rationalisation of institutions – XI

During the last decade, with years of poor governance, the institutions of Pakistan suffered immensely and recorded a significant decline with some being on the verge of collapse. There is therefore a need to carry out due diligence and rationalisation of these institutions so as to align them with realities and performance expectations in accordance with the prevalent social and economic global and local dynamics. Most important are the institutions that have policymaking and operational state responsibilities – the foremost being the ministries under the federal government and the subsidiaries operating under them. The conduct of this segment of the state machinery matters the most for the economic and social welfare of the state. Much of public money is being spent to sustain them while their deliverables are neither transparent nor measurable.

Ten columns of this series of articles carried by this newspaper focused on the overall dynamics of the federal government’s ministerial structure, Ministry of Science & Technology, Ministry of Information Technology (IT), Ministry of National Food Security & Research, Ministry of Water & Power, Ministry of Petroleum and Natural Resources, Ministry of Industry & Production, Ministry of Commerce and Textile Industry, Ministry of Planning and Development and the Ministry of Railways. The ministry under focus in this column is the Ministry of Defense Production.

The Ministry of Defence Production is concerned with the development and production of the full range of equipment and stores for the Pakistan Armed Forces ranging from ballistic missiles to platforms such as main battle tanks and multi-role combat aircraft to small arms, uniforms and ammunition of all calibres.

The Defence Production Division was established within the Ministry of Defence in 1972 by President Zulfiqar Ali Bhutto. Significant investments were made throughout the 1970s and 1980s to establish enterprises such as Heavy Industries Taxila and Pakistan Aeronautical Complex with assistance from the People’s Republic of China in particular, as well European defence companies from countries such as France and Sweden.

Under President Pervez Musharraf in 2004 this was separated and upgraded to the Ministry of Defence Production. The ministry also includes several other specialized organisations devoted to research and development, production, and administration. Pakistan Navy is supported mainly by a facility at the Karachi Shipyard, which has a limited production capacity. In 1987, development of a submarine repair and rebuild facility at Port Qasim became operational. By early 2000, a joint project with China led to the development of the JF-17 Thunder fighter and the Al-Khalid Tank. Pakistan also has taken major steps towards becoming self-sufficient in aircraft overhaul, modernization and tank and helicopter sales and a transfer of technology with France led to the construction of the Agosta B-90 Submarine in the late 1990s and early 2000s and is currently actively participating in many joint production projects such as Al Khalid 2, advance trainer aircraft, combat aircraft, navy ships and submarines. The defence establishments are primarily involved in research and development and also in production of defense equipment and military systems.

The key establishment are:

— Air Weapons Complex

— Heavy Industries Taxila

— Integrated Defence Systems

— Global Industrial Defence Solutions

— Defence Science and Technology Organisation

— Institute of Optronics

— Karachi Shipyard

— Kahuta Research Laboratories

— National Development Complex

— National Engineering and Scientific Commission

— Pakistan Aeronautical Complex

— Pakistan Ordnance Factories

— Space and Upper Atmosphere Research Commission

— Metallurgical Laboratory

— Integrated Dynamics

— Margalla Electronics

— Lyra Body Armour

— Marine Systems Limited

SATUMA National Radio and Telecommunication Corporation

— SHIBLI (Optronics)

Most of these entities were established years back and over a period of time have achieved excellence driven largely by indigenous R & D. Heavy Industries Taxila was established in 1971 and is reported to be one of the largest military industrial complexes. Pakistan Aeronautical Complex was also established in 1971 to re-build, maintain and manufacture aircraft. JF-17 Thunder and MF1-17 Mushshak are the proud productions out of this facility.

Khan Research Laboratories (KRL) was set up in 1976 as a classified lab. Its main contribution is in the field of research, development and production of highly enriched uranium.

Whereas Karachi Shipyard was established way back in 1957. It is engaged in the rebuild, maintenance and manufacture of warships, merchant vessels and other naval vessels. The high point of this entity is assembly of Agosta submarine under technology transfer from France.

The suspension of arms supply to Pakistan by the USA, as a consequence to the Pakistan-India war of 1965, motivated Pakistan to become self-reliant in producing weapons for its defence. This gained momentum as a consequence of the 1970 events. The decade of 70s witnessed a great stride to achieve the vision of excellence in defence production. Today Pakistan is well-positioned globally as a recognised producer of arms and perhaps the best in Asia region. China has been a great supporter throughout these decades of R & D and production.

The defence technology is moving fast and the wars of today are the wars of technology. Pakistan needs to move in line with the global trends to achieve the required deterrent against any aggression. This needs substantial investment, state of art technology, access to global markets and economy of scale in production for sustainability and growth. Pakistan’s defence industry, which today is fully regulated and in public sector needs to open up to invoke investment, technology transfer and marketing of its products in the global market.

India, around two years back, allowed 49 percent foreign direct investment (FDI) in defence industry. Whereas 100 percent FDI is also possible after clearance from the cabinet. This has led to a substantial FDI and technology transfers.

Pakistan has achieved great success in building up institutions of quality to facilitate defence production. Their sustainability through rationalisation and growth is important to move in line, if not ahead, of the global trend in the defence industry.